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A termination for convenience provision in a contract allows one party to the contract to terminate the agreement, even in the absence of the other party's fault or breach, and without suffering the usual financial consequences of a breach of contract.


Where there is provision for early termination, the customer should consider what payments apply to the early termination. If compensation is appropriate, it should not exceed reasonable costs associated with the termination and would not, for example, extend to additional costs such as to cover lost profits on the part of the provider.

Sample clause[]

[Party] may terminate this contract at any time for any reason by giving at least thirty (30) days notice in writing to the [Other Party]. Such termination shall not be deemed a breach of contract. [Party] agrees to pay the [Other Party] for all unpaid invoices and uncompensated staff time and expenses up to the date of termination.


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