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Ending the contract

Termination for convenience clause: meaning and sample wording

A termination for convenience clause lets a party end the contract without giving any reason, usually on a period of written notice.

When to use it

Common in services, consulting and outsourcing contracts, and in public-sector contracts. Customers want flexibility; suppliers want enough notice to replace the work.

Sample termination for convenience clause

Either party may terminate this Agreement at any time for any reason by giving the other party at least thirty (30) days' written notice.

On termination under this clause, the Customer shall pay the Supplier for all Services performed up to the termination date, together with any expenses properly incurred and any non-cancellable commitments made by the Supplier before it received the notice.

What to check

  • Who gets the rightA customer-only right is common in customer-drafted contracts. Suppliers should ask for a mutual right or a longer notice period.
  • Payment for work doneMake sure work in progress, expenses and non-cancellable commitments are paid for.
  • Minimum termsIf the price assumed a long commitment, add a minimum term or an early termination fee.
  • What survivesConfidentiality, payment and liability terms should continue after termination; see the survival clause.

Make the variable parts fill themselves in

In a Word template, replace the details that change with {tags} and wrap optional wording in a section. Clausery turns them into questions, so each document only includes the parts that apply:

{#is_mutual}Either party{/is_mutual}{^is_mutual}The Customer{/is_mutual} may terminate this Agreement for any reason by giving at least {notice_days} days' written notice.

Paste this into your own template, then check it with the free template tag checker or read the template syntax.

Questions

What is the difference between termination for convenience and termination for cause?

Termination for convenience needs no reason, only notice. Termination for cause is available only when the other party has breached the contract or become insolvent, and can often take effect immediately.

Can a contract with no termination clause be ended early?

Generally not unilaterally, unless the other party commits a serious breach. Contracts with no fixed end date may be terminable on reasonable notice, depending on local law.

Can I use this sample wording as it is?

It is a general starting point. Contract law differs between countries and states, and the right wording depends on the deal, so have it reviewed before you rely on it.

Free templates that use it

Related clauses

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This page is general information, not legal advice. Laws differ between countries and states; have wording reviewed for your situation before you rely on it.