TERMINATION
Other Names: Right to Terminate • Early Termination
Sample Clause Language:
[PARTY B] may terminate this Agreement in the event [PARTY A]: (a) is in material breach of any representation, warranty, or covenant of [PARTY A] made under this Agreement and either the breach cannot be cured or, if the breach can be cured, [PARTY A] does not cure such breach within [ten (10) business days] after [PARTY A]’s receipt of written notice of such breach; or (B) has (i) made an assignment for the benefit of creditors, (ii) had substantially all of its assets placed in the control of a receiver or trustee, (iii) filed a voluntary petition for bankruptcy, or sought to effect a plan of liquidation or reorganization, or (iv) had bankruptcy proceedings brought against it by any party.
Source: Based on Charlie's Holdings, Inc. (2019, December 23). Form 8-K. Retrieved from SEC EDGAR website http://www.sec.gov/edgar.shtml
Description:
Termination clauses provide the circumstances in which a party may terminate the agreement early. The sample clause here is unilateral and drafted in favor of Party B. Only Party B is allowed to terminate this agreement and it must be with cause (such as breach or insolvency).
Common Contracts with this Clause:
- All Commercial Agreements
What you'll see with Lawgood:
Four (4) Alternative Positions
- Very Favorable to Party A
- Favorable to Party A
- Neutral
- Less Favorable to Party A
Draft better contracts with Lawgood.