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ARTICLE · 13 FEBRUARY 2019

It's Not You, It's Me: Termination For Convenience Clauses

Borden Ladner Gervais LLP
Borden Ladner Gervais LLP
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Borden Ladner Gervais LLP

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​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.

CanadaCorporate/Commercial Law

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,

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