Termination for convenience
Termination for convenience lets one side end a contract without the other being at fault, usually with notice and sometimes a fee.
Why it matters to a budget owner
It is the clause that answers "can I just leave?" Buyers ask for it in services and long contracts; software vendors often resist it in subscriptions.
When present, it states the notice required and any charge. When absent, you can usually leave only at the end of the term or if the vendor breaches the contract.
What to record
- Which side may use it
- The notice period
- Any charge for using it
Frequently asked questions
Is termination for convenience the same as termination for cause?
No. Termination for cause needs a breach by the other side. Termination for convenience needs no reason at all.
General working knowledge about commercial contracts, not legal advice. Your own agreement governs.
Glossary
Look up related terms
- Early termination feeAn early termination fee is what you pay to end a contract before its term is over, often a share of the remaining fees.
- Notice periodA notice period is how far ahead of a contract's end you must tell the vendor you are leaving or changing terms, such as 30, 60 or 90 days.