Termination for cause clause: Copy, customize, and use instantly
Introduction
A termination for cause clause allows one party to end the contract if the other party fails to meet certain responsibilities or engages in misconduct. This clause ensures accountability and provides a clear pathway for ending the agreement when a breach occurs or specific conditions are not met.
Below are termination for cause clause templates tailored to various scenarios. Copy the one you need, customize it, and add it to your contract.
Standard termination for cause clause
This clause provides a clear and fair process for terminating the agreement due to a breach.
Either party may terminate this agreement immediately upon written notice if the other party materially breaches any of its obligations under this agreement and fails to cure such breach within [specified time period] after receiving written notice of the breach.
Immediate termination for gross misconduct clause
This clause allows for immediate termination in cases of severe wrongdoing.
Either party may terminate this agreement with immediate effect upon written notice if the other party engages in gross misconduct, fraud, or illegal activities that directly impact the terms of this agreement.
Termination for insolvency clause
This clause addresses termination in the event of financial instability.
Either party may terminate this agreement immediately upon written notice if the other party becomes insolvent, files for bankruptcy, or is placed under the control of a receiver or trustee.
Progressive termination process clause
This clause outlines a gradual process before termination.
If either party materially breaches this agreement, the non-breaching party must first provide written notice detailing the breach. If the breach is not cured within [specified time period], the non-breaching party may issue a final notice providing an additional [specified time period] before terminating the agreement.
Termination for failure to meet milestones clause
This clause ties termination to specific performance milestones.
[Party A] may terminate this agreement upon written notice if [Party B] fails to meet the milestones outlined in [referenced section or schedule] by the specified deadlines, and such failure is not remedied within [specified time period].
Termination for regulatory non-compliance clause
This clause allows termination if regulatory obligations are not met.
Either party may terminate this agreement with immediate effect if the other party fails to comply with applicable laws, regulations, or industry standards, and such non-compliance jeopardizes the performance of this agreement.
Termination for repeated breaches clause
This clause addresses repeated but minor breaches.
Either party may terminate this agreement upon written notice if the other party commits [specified number] or more breaches of this agreement within [specified time period], regardless of whether such breaches are cured.
Termination for adverse impact clause
This clause allows termination if one party’s actions harm the other party’s business.
Either party may terminate this agreement upon written notice if the actions or inactions of the other party cause significant adverse impact to its business operations or reputation, and such issues are not resolved within [specified time period].
Termination with escalation clause
This clause includes an escalation process before termination.
Prior to termination for cause, the parties agree to escalate the matter to senior management for resolution. If the breach is not resolved within [specified time period] following escalation, the non-breaching party may terminate this agreement upon written notice.
Termination for non-payment clause
This clause specifically addresses termination for financial non-performance.
[Party A] may terminate this agreement upon written notice if [Party B] fails to make any payment due under this agreement within [specified time period] of the due date, and such payment is not received within [additional time period] after written notice.
Termination for loss of key resources clause
This clause allows termination if critical resources are no longer available.
Either party may terminate this agreement upon written notice if the other party loses access to essential resources, personnel, or assets required to perform its obligations under this agreement, and such loss is not remedied within [specified time period].
Termination for unremedied technical failure clause
This clause applies to agreements reliant on technology or systems.
Either party may terminate this agreement upon written notice if the other party experiences a persistent technical failure that prevents the performance of essential obligations under this agreement, and such failure is not resolved within [specified time period] of receiving written notice.
Termination for reputational harm clause
This clause allows termination if one party’s actions damage the other’s reputation.
Either party may terminate this agreement immediately upon written notice if the other party engages in actions that result in substantial reputational harm to the terminating party, and such harm cannot be adequately addressed within [specified time period].
Termination for force majeure-related breach clause
This clause addresses breaches stemming from force majeure events.
Either party may terminate this agreement upon written notice if the other party’s inability to perform due to a force majeure event persists for more than [specified time period], and such non-performance materially impacts the terms of this agreement.
Termination for failure to maintain insurance clause
This clause is specific to agreements requiring insurance coverage.
[Party A] may terminate this agreement upon written notice if [Party B] fails to maintain the required insurance coverage as outlined in this agreement, and such failure is not rectified within [specified time period] of receiving written notice.
Termination for misrepresentation clause
This clause addresses termination due to false statements made by a party.
Either party may terminate this agreement upon written notice if the other party is found to have made a material misrepresentation during contract negotiations or the term of this agreement, and such misrepresentation materially affects the performance or purpose of this agreement.
Termination for failure to achieve compliance clause
This clause applies to contracts requiring ongoing regulatory or procedural compliance.
Either party may terminate this agreement with immediate effect if the other party fails to meet or maintain compliance with applicable regulations, standards, or certifications required for the execution of this agreement.
Termination for non-cooperation clause
This clause addresses situations where one party refuses to cooperate.
Either party may terminate this agreement upon written notice if the other party fails to provide necessary cooperation or assistance required to fulfill the terms of this agreement, and such failure is not remedied within [specified time period].
Termination for change of control clause
This clause allows termination if one party undergoes a significant ownership change.
Either party may terminate this agreement upon written notice if the other party undergoes a change of control, such as a merger or acquisition, and the new controlling entity is unable or unwilling to honor the terms of this agreement.
Termination for ethical violations clause
This clause allows termination due to unethical or unlawful behavior.
Either party may terminate this agreement immediately upon written notice if the other party engages in unethical or unlawful practices that are incompatible with the terms or purpose of this agreement.
Termination for operational disruption clause
This clause applies to significant disruptions that affect performance.
Either party may terminate this agreement upon written notice if the other party experiences an operational disruption that prevents it from fulfilling its obligations under this agreement, and such disruption is not resolved within [specified time period].
Termination for data breach clause
This clause is specific to agreements involving data protection.
Either party may terminate this agreement immediately upon written notice if the other party experiences a data breach that compromises sensitive information and fails to take corrective actions within [specified time period].
Termination for failure to deliver clause
This clause applies to contracts where timely delivery is critical.
[Party A] may terminate this agreement upon written notice if [Party B] fails to deliver the goods or services outlined in this agreement by the agreed-upon deadlines, and such failure is not remedied within [specified time period].
Termination for withdrawal of consent clause
This clause applies to agreements contingent on regulatory or personal consents.
Either party may terminate this agreement immediately upon written notice if required regulatory or personal consents are withdrawn, rendering performance of the agreement unlawful or impractical.
Termination for resource misallocation clause
This clause addresses misuse of resources allocated under the agreement.
Either party may terminate this agreement upon written notice if the other party misuses resources provided under this agreement, and such misuse materially affects the performance of the agreement and is not resolved within [specified time period].
Termination for breach of confidentiality clause
This clause addresses the violation of confidentiality provisions.
Either party may terminate this agreement immediately upon written notice if the other party breaches the confidentiality obligations set forth in this agreement, and such breach causes material harm to the terminating party.
Termination for abandonment of obligations clause
This clause applies when one party ceases to fulfill their contractual duties entirely.
Either party may terminate this agreement upon written notice if the other party abandons its obligations under this agreement for a period exceeding [specified time period], and such abandonment is not explained or corrected within [specified notice period].
Termination for non-payment of fees clause
This clause is specific to agreements involving recurring payments or fees.
[Party A] may terminate this agreement immediately upon written notice if [Party B] fails to pay any fees or charges due under this agreement within [specified time period] after receiving written notice of non-payment.
Termination for conflict of interest clause
This clause addresses situations where one party engages in activities that create a conflict of interest.
Either party may terminate this agreement upon written notice if the other party engages in activities that constitute a conflict of interest and materially impact the terms or purpose of this agreement.
Termination for repeated violations clause
This clause applies to persistent breaches, even if individually minor.
Either party may terminate this agreement upon written notice if the other party commits repeated violations of the terms of this agreement, even if individually minor, and such violations collectively result in a material breach of the agreement.
Termination for failure to achieve milestones clause
This clause applies to agreements with defined project milestones.
[Party A] may terminate this agreement upon written notice if [Party B] fails to achieve any agreed-upon milestones or deliverables outlined in this agreement and does not rectify such failure within [specified time period].
Termination for fraudulent activity clause
This clause allows termination if one party engages in fraud or deceit.
Either party may terminate this agreement immediately upon written notice if the other party engages in fraudulent activities that materially impact the agreement or the relationship between the parties.
Termination for insolvency clause
This clause is specific to situations where one party becomes insolvent or bankrupt.
Either party may terminate this agreement immediately upon written notice if the other party becomes insolvent, enters bankruptcy proceedings, or ceases to operate as a going concern.
Termination for refusal to renew licenses clause
This clause applies to contracts requiring ongoing licensing compliance.
Either party may terminate this agreement upon written notice if the other party refuses or fails to renew any required licenses or certifications necessary for the performance of obligations under this agreement.
Termination for breach of ethical standards clause
This clause applies to violations of agreed ethical guidelines or policies.
Either party may terminate this agreement immediately upon written notice if the other party violates agreed-upon ethical standards or policies in a manner that materially impacts the agreement.
Termination for illegal activities clause
This clause addresses termination due to one party engaging in unlawful actions.
Either party may terminate this agreement immediately upon written notice if the other party engages in illegal activities that directly or indirectly impact the performance or purpose of this agreement.
Termination for security risks clause
This clause is specific to agreements where security is a priority.
Either party may terminate this agreement immediately upon written notice if the other party’s actions or negligence pose a significant security risk, including but not limited to breaches of data or physical security.
Termination for failure to meet performance standards clause
This clause applies to agreements with specific performance metrics.
[Party A] may terminate this agreement upon written notice if [Party B] fails to meet the agreed-upon performance standards or metrics outlined in this agreement, and such failure is not remedied within [specified time period].
Termination for adverse regulatory action clause
This clause applies when regulatory decisions impact the agreement.
Either party may terminate this agreement immediately upon written notice if regulatory actions or decisions render the performance of this agreement illegal or materially impractical.
Termination for force majeure non-recovery clause
This clause applies when one party fails to recover after a force majeure event.
Either party may terminate this agreement upon written notice if the other party is unable to resume its obligations within [specified time period] following the conclusion of a force majeure event.
Termination for environmental non-compliance clause
This clause applies to agreements with environmental obligations.
Either party may terminate this agreement immediately upon written notice if the other party violates any environmental laws, regulations, or commitments that materially impact the terms of this agreement.
Termination for unauthorized subcontracting clause
This clause applies when one party delegates responsibilities without prior approval.
[Party A] may terminate this agreement immediately upon written notice if [Party B] engages any subcontractors or third parties to perform obligations under this agreement without [Party A]'s prior written consent.
Termination for misrepresentation clause
This clause applies when a party provides false or misleading information.
Either party may terminate this agreement immediately upon written notice if the other party is found to have made material misrepresentations or false statements that impact the agreement or its execution.
Termination for breach of confidentiality clause
This clause allows termination when confidential information is mishandled.
Either party may terminate this agreement immediately upon written notice if the other party breaches its confidentiality obligations under this agreement.
Termination for failure to provide insurance clause
This clause is specific to contracts requiring proof of insurance.
[Party A] may terminate this agreement immediately upon written notice if [Party B] fails to maintain or provide proof of required insurance coverage as stipulated in this agreement.
Termination for failure to obtain regulatory approvals clause
This clause addresses agreements requiring permits or regulatory consents.
Either party may terminate this agreement upon written notice if the other party fails to obtain or maintain any required regulatory approvals necessary for the performance of this agreement.
Termination for harmful competition clause
This clause applies when one party engages in competing activities that harm the other.
[Party A] may terminate this agreement immediately upon written notice if [Party B] engages in competitive activities that materially conflict with the purpose or obligations of this agreement.
Termination for breach of intellectual property rights clause
This clause protects against misuse or infringement of IP.
Either party may terminate this agreement immediately upon written notice if the other party breaches the intellectual property rights provisions of this agreement, including unauthorized use, reproduction, or distribution of protected materials.
Termination for failure to implement agreed changes clause
This clause applies when one party does not fulfill agreed amendments or updates.
[Party A] may terminate this agreement upon written notice if [Party B] fails to implement or comply with mutually agreed amendments or modifications to this agreement within [specified time period].
Termination for adverse publicity clause
This clause addresses reputational risks due to one party’s actions.
Either party may terminate this agreement immediately upon written notice if the other party engages in conduct that results in adverse publicity or reputational harm materially affecting the agreement.
Termination for repeated delays clause
This clause applies to contracts where timeliness is critical.
Either party may terminate this agreement upon written notice if the other party is responsible for repeated delays in performing obligations, even if individually minor, and such delays cumulatively disrupt the purpose of the agreement.
Termination for inability to secure financing clause
This clause is specific to agreements contingent on funding.
Either party may terminate this agreement upon written notice if the other party is unable to secure required financing or funding necessary for fulfilling its obligations under this agreement within [specified time period].
Termination for failure to comply with training requirements clause
This clause applies to contracts involving mandatory training or certifications.
[Party A] may terminate this agreement immediately upon written notice if [Party B] fails to complete required training or certifications necessary for the performance of obligations under this agreement.
Termination for violation of data protection laws clause
This clause is tailored for agreements involving data handling obligations.
Either party may terminate this agreement immediately upon written notice if the other party violates applicable data protection or privacy laws in a manner that materially impacts the agreement.
Termination for unjust enrichment clause
This clause applies when one party benefits unfairly at the other’s expense.
[Party A] may terminate this agreement immediately upon written notice if [Party B] engages in practices that result in unjust enrichment, contrary to the terms and intent of this agreement.
Termination for lack of good faith clause
This clause applies when one party fails to act in good faith.
Either party may terminate this agreement upon written notice if the other party fails to act in good faith or engages in conduct contrary to the principles of fair dealing under this agreement.
Termination for unethical practices clause
This clause allows termination if one party engages in unethical behavior.
Either party may terminate this agreement immediately upon written notice if the other party engages in unethical practices, including but not limited to fraud, bribery, or other conduct detrimental to the integrity of this agreement.
Termination for regulatory non-compliance clause
This clause applies when a party fails to adhere to regulatory obligations.
Either party may terminate this agreement upon written notice if the other party is found to be non-compliant with any applicable laws, regulations, or industry standards that materially affect the performance of this agreement.
Termination for insolvency-related actions clause
This clause is specific to financial instability or insolvency proceedings.
Either party may terminate this agreement immediately upon written notice if the other party initiates or becomes subject to insolvency, bankruptcy, or liquidation proceedings that impact its ability to fulfill its contractual obligations.
Termination for refusal to cooperate clause
This clause addresses lack of cooperation essential to the agreement.
[Party A] may terminate this agreement upon written notice if [Party B] unreasonably refuses to cooperate or provide necessary information, materials, or access required for the performance of this agreement.
Termination for excessive subcontracting clause
This clause is for agreements where limited subcontracting is allowed.
[Party A] may terminate this agreement immediately upon written notice if [Party B] engages in subcontracting beyond what is expressly permitted in this agreement, resulting in material disruption or non-performance.
Termination for unauthorized product modifications clause
This clause applies when unauthorized changes are made to deliverables.
[Party A] may terminate this agreement upon written notice if [Party B] makes unauthorized modifications, alterations, or additions to the deliverables under this agreement, materially impacting their quality or functionality.
Termination for security breaches clause
This clause applies to agreements involving sensitive data or systems.
Either party may terminate this agreement immediately upon written notice if the other party is responsible for a security breach or failure to maintain adequate cybersecurity measures, resulting in harm to the terminating party.
Termination for non-completion of milestones clause
This clause applies to agreements with defined milestones or timelines.
[Party A] may terminate this agreement upon written notice if [Party B] fails to meet critical milestones or deadlines specified in the agreement without providing an acceptable remedy or explanation within [specified time period].
Termination for refusal to remedy clause
This clause is specific to situations where breaches remain unresolved.
Either party may terminate this agreement upon written notice if the other party fails to remedy a material breach within the cure period specified in this agreement or as otherwise agreed upon in writing.
Termination for conflict of interest clause
This clause applies when one party’s actions create a conflict of interest.
[Party A] may terminate this agreement immediately upon written notice if [Party B] is found to have a conflict of interest that materially impacts the agreement or its performance.
Termination for non-payment of fees clause
This clause addresses failure to meet financial obligations.
[Party A] may terminate this agreement immediately upon written notice if [Party B] fails to make required payments within [specified time period] after receiving written notice of non-payment.
Termination for repeated policy violations clause
This clause is for agreements requiring adherence to specific policies.
Either party may terminate this agreement upon written notice if the other party repeatedly violates company policies, codes of conduct, or other agreed standards relevant to the performance of this agreement.
Termination for refusal to sign amendments clause
This clause applies when one party refuses to formalize agreed changes.
[Party A] may terminate this agreement upon written notice if [Party B] refuses to sign or execute amendments to this agreement that were mutually agreed upon in writing.
Termination for failure to provide deliverables clause
This clause focuses on non-performance in delivering agreed outputs.
[Party A] may terminate this agreement immediately upon written notice if [Party B] fails to deliver the products, services, or other obligations outlined in this agreement within the agreed timeline.
Termination for reputational damage clause
This clause is for contracts where public perception is critical.
Either party may terminate this agreement immediately upon written notice if the other party engages in actions that cause significant reputational harm to the terminating party, its affiliates, or its stakeholders.
Termination for unethical conduct clause
This clause addresses unethical behavior by a party.
Either party may terminate this agreement immediately upon written notice if the other party engages in unethical behavior, including fraud, bribery, or conflicts of interest, that undermines the integrity of the agreement.
Termination for insolvency declaration clause
This clause applies to financial instability or insolvency filings.
Either party may terminate this agreement upon written notice if the other party files for bankruptcy, becomes insolvent, or is placed into receivership, thereby jeopardizing its ability to perform contractual obligations.
Termination for refusal to comply with audits clause
This clause ensures transparency and cooperation in audit processes.
[Party A] may terminate this agreement upon written notice if [Party B] refuses or fails to comply with any reasonable audit request required to verify compliance with this agreement.
Termination for misappropriation of funds clause
This clause targets financial misconduct.
Either party may terminate this agreement immediately upon written notice if the other party misuses or misappropriates funds designated for use under this agreement.
Termination for loss of critical partnership clause
This clause is for agreements dependent on third-party partnerships.
[Party A] may terminate this agreement upon written notice if [Party B] loses a critical partnership, license, or supply chain relationship necessary to fulfill its obligations under this agreement.
Termination for withdrawal of consent clause
This clause addresses agreements contingent on ongoing consent.
Either party may terminate this agreement immediately upon written notice if the other party withdraws any required consent or approval necessary for the execution of the agreement.
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.