What Is a Termination Clause?

A contractual provision setting out circumstances or procedures under which an agreement may be ended.

What Does Termination Clause Mean?

A termination clause specifies when and how a contract can be brought to an end, such as for breach, by notice or on defined events. It may also set out what happens after termination.

Why It Matters

How a contract can be ended is one of the most important terms in any agreement. Understanding the termination clause helps parties know their options before disputes escalate.

Related Information

Related legal terms: Contract, Breach of Contract, Notice Period

Related practice area: Corporate & Commercial Law →

Dealing With a Related Matter?

This explanation is a general starting point. If the term matters in a specific situation you are facing, a conversation about your facts can help you decide the right next step.

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This definition provides general information and does not constitute legal advice. Laws change, and their application depends on the facts of a matter. For advice on your specific situation, consult a qualified lawyer.