Key Clauses: Price, Term and Termination
Objectives
- Understand payment, term and termination clauses
- Distinguish termination for cause and for convenience
- Paraphrase clauses
Explanation
Key clauses: 'Term' (duration), 'Fees/Price and Payment', 'Termination'. Termination 'for cause' happens after a breach; 'for convenience' allows ending without a reason, often with notice. 'Material breach' is a serious breach. Watch for 'cure period': time given to fix a breach before termination.
term
The duration of a contract (also: a word or condition).
“The term of this agreement is two years.”
termination for cause
Ending a contract because of the other party's breach.
“They terminated for cause after non-payment.”
termination for convenience
Ending a contract without needing a reason.
“Either party may terminate for convenience with 30 days' notice.”
material breach
A serious breach that defeats the purpose of the contract.
“Failure to deliver is a material breach.”
cure period
Time allowed to remedy a breach.
“The provider has a 15-day cure period.”