Contract Termination For Convenience In Cuyahoga
Description
Form popularity
FAQ
This clause allows one party to terminate the contract without cause, which can be detrimental to the other party. If you encounter resistance when trying to remove this clause, suggest making it mutual so that both parties have the right to terminate the contract without cause.
The termination for convenience clause is designed to give the terminated party a more fair and equitable result than if it were terminated for cause since the termination does not result from its wrongful conduct — a breach of the contract.
Unlike a termination for cause, a termination for convenience occurs without a breach of contract. Basically, one party decides that they've had enough and want to walk away. It's not technically legal, unless the contract gives either party the right to do this, but it does occur in the construction industry.
Contract end by performance. A contract can end when the parties have done all that the contract requires of them. Contract end by agreement. A contract can end when both parties agree to end it before the work is complete. Contract end by frustration. Contract end for convenience. Contract end due to a breach.
A “termination for convenience” clause states that a property owner may terminate a contractor at its convenience for no reason at all. There does not need to be any breach of contract in place. However, the clauses typically require advance notice (such as 30 days).
Furthermore, termination for convenience can have a negative impact on a contractor's reputation. Future government agencies may view a terminated contract as a blemish, even if not due to the contractor's fault. This can affect their ability to secure future contracts.
Key reasons for termination include fraud or mistakes during formation, changes in law rendering the contract illegal, breaches by any party, and mutually agreed-upon terms for ending the contract under specific circumstances.
Write a termination contract letter A contract termination letter allows you to give written notice of your contract's cancellation. It clearly states intent and limits your liability, which arerequired if you're looking to avoid issues while terminating a contract.
