Search

Contract Matters…The Termination Clause: Mapping the Exit Strategy

Often times, business owners are presented with seemingly golden opportunities that they cannot pass up. They find themselves in a crunch to get a deal done and either sign an agreement that has not been reviewed by legal counsel or pull a boilerplate agreement from the web and present it to the other party. We have discussed some of the dangers in these risky behaviors before. Today, let’s talk about the dangers of a bad termination clause.

When it comes to termination clauses, we have seen business owners make these common mistakes: either signing an agreement without a termination clause; signing an agreement with a clause that does not give an opportunity to terminate on terms advantageous to the business; or signing an agreement without understanding what actually does- or does not- trigger termination. We have seen these situations in a wide range of contractual arrangements- consultant agreements, vendor/supplier agreements and much more.

Why is the termination clause so important? Well, for various reasons. One common scenario is that things go terribly wrong. Another case we come across is the case of good business sense. Not every business relationship goes sour because someone did something wrong. Sometimes, circumstances just change and arrangements do not work anymore. Simply put, terminating a contract is sometimes a good or necessary business decision. You want to make sure that you have the ability to get out of an agreement in case this happens. On the other hand, you also want to be sure you are protected from having the plug pulled on you at a moment’s notice- without adequate time to prepare your business for any adjustments.

There are several other elements to termination clauses that are important. Contact C&G to assist you today!!

P: (248) 395-3699 E: attyinfo@cg-legal-solutions.com

*Please be sure to read the disclaimer section on our site!

Recent Posts

See All

Are you part of the 44%?

According to a 2016 Gallup Poll taken after superstar Prince died, only 44% of Americans reported having a will. News outlets widely reported on the probate proceedings for his estate. One of the most

Weed Woes…?

Last week, Detroiters voted to pass two ordinances that lessen the restrictions on medical marijuana dispensaries in the City. The vote comes well over a year after City Council passed a largely restr

It’s PERSONAL!

Choosing the right business structure is critical. It is also very PERSONAL. There are liability, compliance and tax considerations that must be contemplated when making this choice. This is why you s

Corktown Office | 2020 14th Street, Suite 101, Detroit, MI 48216

admin@gllegalgroup.com  |   (313) 752-0235

  • GLLG Facebook
  • GLLG Twitter
  • GLLG Instagram
  • GLLG LinkedIn
  • GLLG YouTube

Oakland County Office | One Towne Square, Ste 1835, Southfield, MI 48076

admin@gllegalgroup.com  |   (248) 717-7777

© 2020 by Great Lakes Legal Group, PLLC