Can I terminate an ongoing contract just by giving notice?

Often yes, but Dutch case law on duurovereenkomsten may require a reasonable notice period or compensation, even where the contract appears to allow free termination.

What is the difference from termination for cause?

Convenience needs no reason, only notice; termination for cause requires a default and usually a chance to cure first.

Is there a minimum notice period required by Dutch law?

Not in general contract law, but courts may impose one based on reasonableness and fairness if the contractual period is too short given the other party's investment and reliance.

Does the terminating party owe compensation for committed costs?

If the clause is silent, courts may award compensation for costs reasonably committed in reliance on the contract. Addressing this expressly in a wind-down provision avoids uncertainty.

Can a party use convenience termination to avoid paying a penalty it has incurred?

No. A penalty already triggered by a breach remains payable even if the contract is subsequently terminated for convenience; termination does not extinguish accrued obligations.

Termination for Convenience Clause

Lets a party end the contract without cause, on notice, even if the other side is performing perfectly.

What it is

Termination for convenience allows a party to end the agreement without alleging breach, simply by giving the agreed notice. It contrasts with termination for cause, which requires a default. It is common in services and supply contracts where flexibility is valued.

Why it matters

It provides an exit when needs change, but for the other party it removes revenue certainty. Under Dutch law, even a contractual right to terminate an ongoing agreement is constrained by reasonableness and fairness, sometimes requiring a longer notice period or compensation.

How to apply it

Set a clear notice period proportionate to the contract's length and the other party's investment.
Address what is payable on exit: work done, committed costs, wind-down fees.
Specify the form of notice and the effective termination date.
State which obligations (confidentiality, payment) survive termination.

Negotiation tips

• A supplier facing convenience termination should secure exit fees or a minimum term.
• A customer should keep the notice period short and make the right mutual or one-sided as suits it.

Common pitfalls

• Assuming a contractual right to terminate overrides the duurovereenkomst notice doctrine.
• Forgetting to address payment for work in progress at the exit date.

Legal references

Unless marked otherwise, references are to Dutch law (Burgerlijk Wetboek, the Dutch Civil Code); EU instruments such as the GDPR apply across the EU. This is general information, not legal advice. Other jurisdictions treat these concepts differently. Verify the current text and your situation with a qualified lawyer.

Frequently asked questions

Common questions about this clause.