Generate termination for convenience clauses
AI writes 30/60/90-day termination provisions allowing contract exit. Get professional termination clauses instantly.
Generate termination for convenience clauses
River's Termination for Convenience Clause Generator creates provisions allowing parties to exit contracts without proving breach or cause. Termination for convenience clauses let parties terminate by giving advance notice (30, 60, or 90 days), providing flexibility to end relationships that are no longer working. You specify the notice period, who can terminate, termination fees, and post-termination obligations. The AI generates professional termination provisions with appropriate protections. Perfect for services agreements and ongoing commercial relationships.
Unlike termination for cause clauses (which require proving breach), termination for convenience allows exit for any reason or no reason. This provides commercial flexibility but requires careful drafting to protect both parties. The AI generates provisions balancing exit flexibility with reasonable protections like advance notice, payment for services rendered, and orderly transition procedures. You get clauses that enable clean contract exits without extended disputes.
This tool is perfect for attorneys drafting services agreements, corporate counsel managing vendor contracts, procurement teams creating standard terms, and anyone with ongoing commercial relationships. Use termination for convenience clauses in services agreements, software subscriptions, consulting contracts, and outsourcing arrangements. Great for providing predictable exit rights in long-term relationships. The AI generates foundation clauses attorneys customize for specific contracts.
When to Include Termination for Convenience
Termination for convenience clauses make sense when parties want flexibility to exit without proving breach, especially in services relationships where chemistry and fit matter. A customer might want to change vendors, bring services in-house, or adjust strategy. A service provider might want to exit unprofitable relationships. Termination for convenience lets both parties exit without litigation over whether a breach occurred. This is valuable in long-term services contracts, subscriptions, and relationships where circumstances change. However, service providers might resist giving customers unilateral termination rights without notice periods or fees to protect revenue stability.
Balance flexibility with protection through notice periods, termination fees, and transition obligations. Typical termination for convenience clauses require 30-90 days' advance written notice. This gives both parties time to transition (customer finds new provider, provider finds new customer or reduces staff). Some contracts include termination fees, especially if the provider made upfront investments. For example, a 3-year contract might allow termination for convenience in year 2 with a termination fee of 3 months' fees, and without fee in year 3. This balances customer flexibility with provider revenue protection.
Distinguish termination for convenience from termination for cause. Termination for cause (immediate termination if a party materially breaches) should be available in addition to termination for convenience. Cause termination is immediate with no fees. Convenience termination requires notice and possibly fees. Include both. Don't let convenience termination replace cause termination. A party shouldn't have to give 60 days' notice and pay fees to terminate when the other party materially breached. Separate cause termination (immediate, no fees, requires breach) from convenience termination (requires notice, possibly fees, no breach required).
What You Get
Complete termination for convenience provision
Specified notice period and procedures
Post-termination obligations clearly defined
Payment and fee provisions
Professional, balanced language
How It Works
- 1Specify termination termsEnter notice period, who can terminate, fees, and obligations
- 2AI generates clauseOur AI creates termination provision in seconds
- 3Insert into contractAdd clause to agreement's termination section
Frequently Asked Questions
Should termination for convenience be mutual?
It depends on bargaining power and the relationship. Customers often get unilateral termination rights (they can terminate for convenience, providers can't) because customers want flexibility to change vendors. Service providers want mutual termination rights so they can exit unprofitable relationships. In balanced negotiations, mutual termination for convenience is common, though the notice period or fees might differ. Customers might get 30-day termination with no fee, while providers might get 90-day termination. Negotiate based on which party needs more flexibility.
What's a reasonable notice period?
30-90 days depending on the services and relationship. Simple services with minimal integration (monthly software subscriptions) often allow 30 days. Complex services requiring transition (outsourced IT, manufacturing) might require 60-90 days. Longer notice periods help service providers reduce staff or find replacement customers and help customers find and transition to new providers. Balance flexibility with orderly transition. 60 days is common for commercial services agreements.
Should I charge termination fees?
Consider termination fees if you made upfront investments or need revenue stability. If a service provider invested in onboarding, custom development, or hired staff for the relationship, early termination fees can recoup investments. Common approaches: no fee after minimum term (e.g., free termination after year 1), declining fees over time (larger fee in year 1, smaller in year 2, none in year 3), or flat fee (e.g., 3 months' fees). Termination fees shouldn't be penalties; they should reasonably compensate for lost revenue or investment. Excessive fees might be challenged as penalties.
What happens to payments after termination?
Typically, customers pay for services rendered through the termination date plus any termination fees. Prepaid fees for future services are generally refunded pro rata. For example, if customer paid for a year but terminates after 6 months, customer gets refund for the unused 6 months (minus any termination fees). Services provided through the termination date must be paid. Make this explicit in your termination clause. Also specify when final payment is due (e.g., within 30 days of termination) and what happens to outstanding invoices.
What obligations survive termination?
Certain obligations continue after termination: payment obligations (must pay for services rendered), confidentiality (usually survives 3-5 years or perpetually for trade secrets), return of property (must return each other's materials and data), representations and warranties for past performance, indemnification for pre-termination acts, and limitation of liability. Specify which sections survive in your termination clause. Common language: 'Upon termination, Sections [list numbers] shall survive.' This prevents disputes about what obligations continue.
What is River?
River is an AI-powered document editor that helps you write better, faster. With intelligent writing assistance, real-time collaboration, and powerful AI tools, River transforms how professionals create content.
AI-Powered Writing
Get intelligent suggestions and assistance as you write.
Professional Tools
Access specialized tools for any writing task.
Privacy-First
Your documents stay private and secure.
Ready to try Generate termination for convenience clauses?
Start using this tool in 60 seconds. No credit card required.
Generate Clause →