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Glossary

What is contract termination?

Contract termination is ending a contract before or at the end of its term, under a right in the contract or by agreement, and closing out what each party still owes.

Schedule a Demo All Glossary Terms

Ways a contract ends

  • Expiry. The term ends and the contract is not renewed.
  • Termination for convenience. A party ends the contract on notice, without cause, where the contract allows it.
  • Termination for cause. A party ends the contract after a material breach, often after a cure period.
  • Mutual agreement. The parties agree to end it.

The termination process

  • Check the termination right, notice period and how notice must be given
  • Send notice in the form the contract requires
  • Close out obligations: final invoices, return of data and property, transition services
  • Note the clauses that survive termination, such as confidentiality and indemnity
  • Record the termination and update connected systems

How Aavenir handles it

Contractflow tracks notice periods and termination rights, runs the close out tasks and keeps a record of every step. A termination can also be reversed if the business decision changes.

Keep reading

Breach of contract A breach of contract happens when a party fails to perform an obligation in a contract, performs it late or.Read more Contract renewal Contract renewal is extending a contract for a new term, either automatically under an auto renewal clause or.Read more Contract obligations Contract obligations are the duties each party agrees to perform under a contract, such as paying on time,.Read more

Frequently asked questions (FAQ)

Common questions

How do you terminate a contract?

Follow the termination clause: confirm you have the right, check the notice period and how notice must be given, send it, then close out remaining obligations such as final invoices and return of data. See Contractflow.

What survives termination of a contract?

The clauses the contract says survive, often confidentiality, indemnity, limitation of liability and payment of amounts already due. Track them after termination as you would any other obligation. Read about contract obligations.

What is termination for convenience?

A right to end the contract on notice without having to show a breach. Not every contract has one, and it often carries a longer notice period or a fee. Termination for cause follows a breach instead. Read about breach of contract.

Have a question we have not answered? Ask the Expert

Schedule a demo

See your contracts run on one record.

  • 1 A 30 minute walkthrough Built around your team, whether that is procurement, legal, IT or finance.
  • 2 Your contracts, not ours Bring a few sample agreements and watch Aavenir AI extract and review them.
  • 3 ServiceNow or standalone We show the deployment that fits the systems you already run.

Prefer to talk first? Contact the team.