What is a cure period?

A cure period gives the breaching party a chance to fix the problem before termination takes effect. Typical cure periods are 15–30 days. If you send a termination notice citing a breach, the other party has the cure period to remedy the issue. If they fix it, the termination is off. If they don't, termination kicks in after the cure period expires.

What obligations survive termination?

Common survival provisions: confidentiality, IP ownership, indemnification, limitation of liability, payment for work completed, and dispute resolution. The contract should list which sections survive. If it doesn't, courts generally hold that provisions needed to enforce post-termination rights survive implicitly.

Can an employee be terminated without cause?

In most U.S. states (except Montana), at-will employment means either party can end the relationship at any time, for any reason (or no reason), as long as it's not discriminatory or retaliatory. Employment contracts can modify this by requiring cause for termination, but most at-will employees don't have this protection.

Do I still have to pay after terminating a contract?

You owe for work completed before termination and any minimum payment obligations in the contract. Some contracts include early termination fees — especially leases and subscription agreements. If you terminate for cause (the other party breached), you may not owe the termination fee. Check the termination clause for financial consequences.

How do I properly terminate a contract?

Follow the contract's notice requirements exactly. Send written notice to the address or email specified in the notices clause, state your reason for termination (for cause) or that you're exercising your for-convenience right, reference the specific clause, and keep proof of delivery. Sloppy termination can be treated as a breach — do it by the book.

Contract Clause Library

Essential

Termination Clause

Defines how, when, and why either party can end the contract early — including notice periods, cure rights, and post-termination obligations.

What it means

Termination is ending a contract before it naturally expires. You can terminate 'for cause' (the other party screwed up) or 'for convenience' (you just want out). The clause spells out who can terminate, when, how much notice is required, and what happens next.

How it works in practice

Your SaaS vendor's service quality drops. Outages, slow support, missed SLAs. Your contract has two termination options: for cause (30-day cure period — they get 30 days to fix the problems after written notice) and for convenience (90-day notice, no reason needed). If the problems are bad enough, terminate for cause to avoid paying during the 90-day convenience window. But document everything — if the vendor disputes whether the problems constitute 'cause,' you'll need evidence.

Example clause language

Either Party may terminate this Agreement upon thirty (30) days' prior written notice to the other Party. Either Party may terminate this Agreement immediately upon written notice if the other Party materially breaches this Agreement and fails to cure such breach within fifteen (15) days after receiving written notice thereof. Upon termination, all obligations that by their nature should survive shall remain in effect.

When you need it

Every contract longer than a single deliverable — you always need an exit strategy
Ongoing service or subscription agreements
Employment contracts where at-will status isn't sufficient
Lease agreements with fixed terms

When you might skip it

One-time purchase agreements that complete on delivery

Found in these contract types

Service Agreement Lease Agreement Employment Agreement Consulting Agreement Freelance Contract

Related legal terms

Term Breach of Contract Force Majeure Severability Indemnification Confidentiality Period

Frequently asked questions about termination

For cause requires a specific reason — the other party breached the contract, went bankrupt, or violated a law. For convenience means either party can walk away with proper notice, no reason needed. For-convenience termination gives you flexibility; for-cause termination gives you protection. Good contracts include both.

See full glossary entry for “Termination”

Detailed definition, related terms, and more in the Contract Glossary

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This content is for informational purposes only and does not constitute legal advice. For contracts with significant financial or legal implications, review by a qualified attorney is recommended.