Termination Agreement

Summary

This termination agreement template can be used by parties to a commercial contract when they have agreed to terminate their agreement. This template includes practical guidance, drafting notes, and alternate and optional clauses. The template is premised on the parties to a commercial agreement mutually deciding to terminate their contractual relationship. Counsel must carefully review the terms of the contract that will be terminated and confer with the client and ensure that the termination agreement addresses all relevant issues pertaining to the contract. Note that this agreement does not include a release of claims arising out of the subject contract. For additional information regarding termination, see Termination and Cancellation Rights and Termination Assistance Services in Outsourcing. For non-jurisdictional termination clauses to be used in a commercial contract (i.e., for change of control, at-will, etc.), see Termination Clauses. For a termination agreement that includes a mutual release of all claims relating to the terminated contract, see Release Agreement.