Business and Commercial Litigation
Contract Claims
The terminating party must establish a breach meeting the contractual standard, comply with notice and cure requirements, and terminate in the manner specified. Wrongful termination for cause is itself a material breach.
Remedies for the terminating party survive.
Alternative Names:
For-Cause Termination|Termination for Default
Why it Matters?
The risk asymmetry favors caution, since a party that terminates for cause and is later found to have lacked grounds has committed the breach and faces the counterparty's full damages. Termination for convenience where available is the safer route when the grounds are arguable, trading the damages claim for certainty. Documenting the breach and the cure failure contemporaneously is what supports the decision if challenged.
Frequently Confused with
Related terms
Frequently asked questions
What is the risk of terminating for cause?
What is the safer route on arguable grounds?
