Breaking up a contractual relationship can be hard to do. Unless
your contract includes express terms that provide otherwise, the
only way to terminate is by agreement. A "termination for
convenience" clause, which allows a party to terminate the
contract without cause, can be a useful mechanism to end a contract
and avoid costly disputes. This type of clause has become more
common in the construction industry in recent years. However, it is
crucial that the termination for convenience clause include clear
and unambiguous language that sets out both how the clause is to be
applied and what damages are to be paid to the other party when it
is invoked.
Given the number of cases which involve disputes over
termination for convenience clauses, these clauses are not always
clearly written or understood. In contract disputes, courts seek to
enforce and give effect to the bargain made between the parties.
Generally, this does not include implying
additional terms,