Contract Glossary
Term and Termination
Definition
A 'Term and Termination' clause defines how long a contract lasts (its term) and the conditions under which either party can end it early (termination). It covers the initial duration, renewal options, notice periods for ending the relationship, and what obligations survive after the contract ends.
In Practice
You sign a two-year consulting agreement with a term-and-termination clause. The initial term runs January 2025 through December 2026, then auto-renews for successive one-year periods unless either party gives 60 days' written notice before the renewal date. Either party can also terminate for cause if the other materially breaches and fails to cure within 30 days. When the relationship sours in month 14, you review this clause to understand your exit options — can you terminate for convenience, or do you need to prove a material breach?
Example Clause
This Agreement shall commence on the Effective Date and continue for a period of twenty-four (24) months (the 'Initial Term'), and shall automatically renew for successive twelve (12) month periods (each a 'Renewal Term') unless either Party provides written notice of non-renewal at least sixty (60) days prior to the expiration of the then-current term. Either Party may terminate this Agreement immediately upon written notice if the other Party materially breaches any provision and fails to cure such breach within thirty (30) days of receiving written notice.
Common in these contract types
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Frequently asked questions about term and termination
The 'term' is the duration of the contract — when it starts, when it ends, and whether it renews. The 'termination' provisions explain how to end the contract before the term naturally expires. A one-year contract with a 30-day termination-for-convenience clause means the agreement lasts a year unless someone exercises the early termination option. Together, they define the full lifecycle of the relationship.
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Create your contractThis 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.