Termination

Typical wording

Either party may terminate the agreement on three (3) months' written notice. In the event of material breach, the agreement may be terminated with immediate effect.

What it means

Both sides can walk away on notice. On a serious breach of contract it can be ended at once.

Common practice

1-3 months' mutual notice is common for ongoing services. On breach it is common to give a period to remedy, typically 14-30 days, before termination.

What to look for

• Is the notice period the same length for both parties?
• Does the party in breach get a chance to remedy it first?
• What happens to fees paid in advance?
• What happens to data and files after termination?

Source