Termination clause is a contractual clause that defines the conditions, circumstances, and procedures for ending a contract, either before or at the end of its term. It provides clarity on rights and obligations, reducing ambiguity and disputes. By outlining a structured process, it ensures accountability, manages risks, and promotes a fair resolution, safeguarding professional relationships.
Drafting Tip
Detail the conditions under which the contract can be terminated, notice requirements, and responsibilities after termination. Include effects of termination on outstanding obligations.
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