termination for convenience
Definition
Termination for convenience is a contract clause that lets one party (usually the client or larger company) end the agreement at any time without having a specific reason or fault on your part. Unlike being fired for doing something wrong, this type of termination means the other party simply decided they no longer want or need your services. You typically receive payment for work already completed, but you cannot sue them just for choosing to walk away.
Example
You sign a year-long marketing contract with a retailer, and three months in they decide to bring their marketing in-house, so they invoke this clause to end your contract early and pay you only for the three months of work you already delivered.
Watch Out
Before signing any contract with this clause, negotiate for a kill fee or minimum notice period so you are not left scrambling with no income if the other party pulls out unexpectedly.
See which terms appear in your contract?
This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.