Contract Termination For Convenience In Washington
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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.
Ensure Proper Grounds for Termination Common grounds for this sort of action include a breach of the contract terms, changes in business circumstances, or non-performance of the breaching party. Be sure that the grounds for termination are legally sound and appropriately documented.
A termination for convenience clause, or "T for C" clause, enables a party to a contract to bring the contract to an end without the need to establish that the other party is in default, for example because the client party's needs have changed, or in order to arrange for another party to complete the contract.
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.
The law allows buyers to cancel within seven business days of signing a contract. This law does not cover purchasing a franchise, which falls under the Franchise Investment Protection Law (RCW 19.100). Franchise purchasers do not have a right to cancel under that statute. Back to Top
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).
Either party may terminate this Contract upon thirty (30) days written notice to the other party for any reason without penalty. Termination for Convenience. Either Party may terminate this Agreement without cause by providing the other Party with no less than thirty (30) days' advance written notice.
How do you write a Termination Agreement? Provide the names and mailing addresses of each party involved. Provide details from the original contract. Select a termination date after which the contract will no longer be in effect. State if either party is providing compensation as part of the Termination Agreement.
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.
There are some limitations on the use of a termination for convenience clause. The primary limitation is that all contracts include an implied covenant of good faith and fair dealing. Essentially, this covenant prohibits the parties to a contract from acting in bad faith.
