A “termination for causal
events” clause is found in majority of
contracts because of the fact that it is widely accepted as an
industry-standard contractual provision. For purposes of this
article, we delve into the termination for causal events, which we
note at the outset differs from termination for cause ie,
breach.
A termination for causal events clause lists certain types of
events which, if materialised, may give rise to a right to
terminate the agreement. The list of trigger events that are
generally included in this clause is based on certain events that
would either hinder or prevent a party from performing their
obligations under the agreement, or otherwise render performance
impossible. These events include the following:
