What Does “Termination for Convenience” Mean in a Contract?
The right to end a contract without cause - simply because a party no longer wishes to continue.
Detailed Explanation
Termination for convenience allows ending a contract without needing to prove breach or wrongdoing. It's an "escape hatch" that provides flexibility but reduces certainty for the other party.
Usually, termination for convenience requires advance notice (30-90 days is common) and may trigger payment for work completed or committed. Some contracts have this right only for one party, creating an imbalance.
Example in a Contract
“Either party may terminate this Agreement for convenience at any time by providing sixty (60) days' prior written notice to the other party. Upon such termination, Company shall pay Contractor for all Services performed through the termination date.”
Why It Matters
Termination for convenience determines how easily you can exit. If only the other party has this right, you might be locked in while they can leave anytime. Ensure any convenience termination rights are mutual.
Related Terms
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