Initial term clause: Copy, customize, and use instantly
Introduction
An initial term clause outlines the duration of the Agreement’s first term, establishing the starting point for the contractual obligations of both parties. This clause is crucial as it defines the commitment period, setting clear expectations for both parties regarding the length of the initial phase of the Agreement.
Below are templates for initial term clauses tailored to different scenarios. Copy, customize, and insert them into your agreement.
Standard initial term clause
This version includes basic provisions for the initial term.
The initial term of this Agreement shall be [X] years, commencing on the Effective Date and ending on the [X] day of [month/year], unless terminated earlier in accordance with the terms of this Agreement. This initial term may be extended as provided in the renewal clause.
Initial term clause with provision for renewal
This version applies to renewal provisions.
The initial term of this Agreement will be [X] years, starting from the Effective Date. Upon expiration of the initial term, this Agreement may be renewed for additional terms as outlined in the renewal clause, subject to the mutual written agreement of both parties.
Initial term clause with provision for early termination
This version applies to early termination.
The initial term of this Agreement shall be [X] years, beginning on the Effective Date. Either party may terminate this Agreement before the expiration of the initial term by providing written notice [X] days in advance, subject to the terms of the termination clause.
Initial term clause with provision for automatic extension
This version applies to automatic extension.
The initial term of this Agreement is [X] years. Upon expiration of the initial term, the Agreement will automatically renew for successive [X]-year periods unless either party provides written notice of its intention not to renew at least [X] days prior to the expiration of the current term.
Initial term clause with provision for fixed end date
This version applies to a fixed end date.
This Agreement shall be effective for an initial term of [X] years, commencing on the Effective Date and ending on [specific end date], unless earlier terminated in accordance with the provisions of this Agreement. No renewal shall be automatic, and a new agreement must be negotiated at the conclusion of the initial term.
Initial term clause with provision for extension based on performance
This version applies to performance-based extension.
The initial term of this Agreement will be [X] years, beginning on the Effective Date. At the end of the initial term, if [Party B] meets agreed-upon performance criteria, the Agreement may be extended for an additional term, subject to mutual agreement by both parties.
Initial term clause with provision for conditional extension
This version applies to conditional extension.
The initial term of this Agreement shall be [X] years. The Agreement may be extended for one additional term of [X] years, subject to the fulfillment of specific conditions set forth in the renewal clause. If the conditions are not met, the Agreement will terminate at the end of the initial term.
Initial term clause with provision for initial trial period
This version applies to a trial period.
The initial term of this Agreement will be [X] months, beginning on the Effective Date, and will serve as a trial period. Following the trial period, the Agreement will continue for an additional [X]-year term unless either party provides written notice of termination.
Initial term clause with provision for review before renewal
This version applies to review before renewal.
The initial term of this Agreement is [X] years, starting from the Effective Date. Prior to the end of the initial term, both parties will conduct a review of the Agreement, including the performance and terms, to determine whether the Agreement will be renewed or modified for the next term.
Initial term clause with provision for fixed pricing
This version applies to fixed pricing.
The initial term of this Agreement will be [X] years. During the initial term, the pricing terms outlined in the Agreement will remain fixed, and no price increases will be made unless mutually agreed upon by both parties in writing.
Initial term clause with provision for minimum duration
This version applies to minimum duration.
The initial term of this Agreement will be a minimum of [X] years, starting from the Effective Date. Neither party may terminate the Agreement during the initial term except in cases of breach or as otherwise specified in the termination clause.
Initial term clause with provision for partial term extension
This version applies to partial term extension.
The initial term of this Agreement is [X] years, with the option for a partial extension of up to [Y] months. If both parties agree to extend the Agreement after the initial term, the extension will cover the remaining work or additional tasks as specified.
Initial term clause with provision for specific start and end dates
This version applies to specific start and end dates.
This Agreement will have an initial term of [X] years, commencing on [specific start date] and ending on [specific end date], unless terminated earlier according to the terms set forth in this Agreement. No automatic renewals will take place without the explicit agreement of both parties.
Initial term clause with provision for performance-based termination
This version applies to performance-based termination.
The initial term of this Agreement is [X] years. If [Party B] does not meet the performance standards specified in the Agreement during the initial term, [Party A] reserves the right to terminate the Agreement before the term ends, with [X] days' notice.
Initial term clause with provision for mutually agreed termination
This version applies to mutually agreed termination.
The initial term of this Agreement will be [X] years. Either party may terminate the Agreement before the end of the initial term by mutual agreement, with written notice provided at least [X] days prior to termination.
Initial term clause with provision for renewal based on project scope
This version applies to project scope.
The initial term of this Agreement will be [X] years, beginning on the Effective Date. If the scope of the project changes during the initial term, the parties may mutually agree to extend the initial term to accommodate the revised project scope.
Initial term clause with provision for ongoing review
This version applies to ongoing review.
The initial term of this Agreement shall be [X] years. [Party A] will review the progress and performance under this Agreement at [regular intervals] during the initial term to assess whether the terms need to be amended or extended based on project needs.
Initial term clause with provision for early renewal
This version applies to early renewal.
The initial term of this Agreement is [X] years. [Party A] may initiate an early renewal of the Agreement for an additional term of [Y] years, provided written notice is given to [Party B] no later than [X] months before the expiration of the initial term.
Initial term clause with provision for termination with cause
This version applies to termination with cause.
The initial term of this Agreement will be [X] years, starting from the Effective Date. Either party may terminate this Agreement at any time during the initial term with cause, provided written notice is given [X] days in advance.
Initial term clause with provision for variable duration
This version applies to variable duration.
The initial term of this Agreement will be [X] years, with the option for both parties to agree on an extension of the term for an additional [Y] years. The duration of the initial term may vary depending on the project's requirements and mutual agreement.
Initial term clause with provision for limited initial period
This version applies to a limited initial period.
This Agreement shall have an initial term of [X] months, beginning on the Effective Date. After the expiration of the initial term, the Agreement will automatically renew for additional periods, subject to mutual agreement, unless terminated earlier.
Initial term clause with provision for fixed term and renewal option
This version applies to fixed term with renewal option.
The initial term of this Agreement is [X] years, with the option to renew for an additional [X]-year period. Renewal will be based on mutual written consent, and the parties will negotiate the terms of renewal before the expiration of the initial term.
Initial term clause with provision for early termination notice
This version applies to early termination notice.
The initial term of this Agreement shall be [X] years. Either party may terminate the Agreement before the end of the initial term by providing written notice at least [X] days prior to the intended termination date.
Initial term clause with provision for adjustment based on performance
This version applies to performance-based adjustments.
The initial term of this Agreement will be [X] years. If either party fails to meet key performance indicators (KPIs) established in this Agreement during the initial term, the parties may adjust the terms or terminate the Agreement as specified in the performance clause.
Initial term clause with provision for evaluation period
This version applies to an evaluation period.
The initial term of this Agreement shall be [X] months, during which both parties will evaluate the effectiveness of the Agreement. After this evaluation period, both parties will meet to determine whether to renew or amend the terms for the subsequent period.
Initial term clause with provision for fixed end date
This version applies to a fixed end date.
This Agreement will have an initial term of [X] years, starting from the Effective Date and ending on [specific end date], unless terminated earlier in accordance with the terms of this Agreement. No renewals will occur unless expressly agreed in writing.
Initial term clause with provision for review after initial term
This version applies to review after the initial term.
The initial term of this Agreement will be [X] years. At the end of the initial term, the parties will conduct a review to assess the performance of both parties, determine if the Agreement needs to be amended, and decide whether to renew or terminate the Agreement.
Initial term clause with provision for milestone-based extension
This version applies to milestone-based extension.
The initial term of this Agreement will be [X] years, but can be extended for an additional [Y] years if specified milestones are met. Both parties will agree on the milestones in advance, and if the milestones are achieved, the Agreement will automatically extend.
Initial term clause with provision for mutual termination
This version applies to mutual termination.
This Agreement will have an initial term of [X] years, starting from the Effective Date. The Agreement may be terminated at any time during the initial term by mutual written consent of both parties, with [X] days' notice.
Initial term clause with provision for renewal upon satisfaction
This version applies to renewal based on satisfaction.
The initial term of this Agreement is [X] years. Upon the completion of the initial term, the Agreement may be renewed if both parties are satisfied with the performance and outcomes of the work completed. Renewal is contingent upon mutual written consent.
Initial term clause with provision for limited renewals
This version applies to limited renewals.
The initial term of this Agreement shall be [X] years. After the initial term, this Agreement may be renewed for up to [X] additional periods, but no renewal period shall exceed [X] years. Renewal must be agreed to in writing by both parties.
Initial term clause with provision for modification during term
This version applies to modification during term.
The initial term of this Agreement will be [X] years. However, the terms of the Agreement, including scope of work, timelines, and fees, may be modified at any time during the initial term by mutual written agreement of both parties.
Initial term clause with provision for conditional termination
This version applies to conditional termination.
The initial term of this Agreement will be [X] years. [Party A] may terminate this Agreement during the initial term if [Party B] fails to meet certain conditions or performance standards as outlined in the Agreement. Termination will be effective upon written notice to [Party B].
Initial term clause with provision for extension based on mutual agreement
This version applies to extension by mutual agreement.
The initial term of this Agreement shall be [X] years. At the end of the initial term, the Agreement may be extended for additional periods upon mutual agreement of both parties. The terms for any extension will be negotiated and agreed upon before the expiration of the initial term.
Initial term clause with provision for transition period
This version applies to a transition period.
The initial term of this Agreement will be [X] years. Upon the expiration of the initial term, there will be a transition period of [X] months, during which both parties will work to ensure a smooth transition and handover of responsibilities. This transition period will be governed by the terms of the Agreement.
Initial term clause with provision for no automatic renewal
This version applies to no automatic renewal.
The initial term of this Agreement is [X] years, and the Agreement shall not automatically renew at the end of the term. Both parties must agree to any renewal or extension in writing before the expiration of the initial term.
Initial term clause with provision for performance-based continuation
This version applies to performance-based continuation.
The initial term of this Agreement will be [X] years. If the performance during the initial term meets the agreed-upon metrics and benchmarks, the Agreement may continue for an additional period based on the mutual written consent of both parties.
Initial term clause with provision for fixed pricing during the term
This version applies to fixed pricing during the term.
The initial term of this Agreement will be [X] years, with a fixed pricing structure for the entire term. Any price adjustments will be considered upon the renewal of the Agreement, at which time both parties may negotiate the pricing for the following term.
Initial term clause with provision for early evaluation and renewal
This version applies to early evaluation.
The initial term of this Agreement will be [X] years, with an early evaluation after [X] months. If both parties are satisfied with the performance of the Agreement at that time, the Agreement may be renewed for an additional term.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.