# Termination for Cause Clause

Source: https://contracko.com/es/biblioteca-de-clausulas/resolucion-por-incumplimiento

# Termination for Cause Clause

Allows a party to end the contract when the other materially breaches, often after a chance to cure.

## Qué es

Termination for cause lets the innocent party end the agreement when the other commits a material breach, becomes insolvent, or repeatedly defaults. Under Dutch law this typically takes the form of ontbinding, available for any non-trivial failure to perform under BW 6:265.

## Por qué importa

It is the contract's safety valve against a defaulting counterparty. Clear cure periods and a precise definition of "material breach" prevent disputes about whether termination was justified; wrongful termination can itself be a breach.

## Cómo aplicarla

- Define material breach and list automatic triggers such as insolvency.
- Provide a cure period and require a notice of default (ingebrekestelling) where needed.
- State the effect of termination and which obligations survive.
- Address restitution and settlement of work performed up to termination.

## Ejemplo de redacción

> Either party may terminate this Agreement with immediate effect if the other commits a material breach that, being curable, is not cured within thirty (30) days of written notice.

## Consejos de negociación

- • Negotiate which breaches are "incurable" and allow immediate termination.
- • Consider contractually narrowing the broad BW 6:265 right for minor failures.

## Errores frecuentes

- • Terminating without the required notice of default, making the termination wrongful.
- • Leaving "material breach" undefined, so any minor default is argued to justify exit.

### Cómo ayuda Contracko

Contracko stores all your contracts in one searchable repository so you can instantly locate which agreements contain specific cure-period lengths or insolvency triggers when a counterparty defaults. Its AI review flags clauses where material breach is undefined or cure periods are missing, and tracks breach-notice and cure deadlines as milestones with reminders, helping you meet procedural requirements before moving to termination.

## Referencias legales

- [BW 6:265 Dissolution for breach (ontbinding) Derecho neerlandés](https://wetten.overheid.nl/BWBR0005289)
- [BW 6:74 Damages for non-performance Derecho neerlandés](https://wetten.overheid.nl/BWBR0005289)

Salvo indicación en contrario, las referencias remiten al derecho neerlandés (Burgerlijk Wetboek, el Código Civil neerlandés); los instrumentos de la UE como el RGPD se aplican en toda la UE. Se trata de información general, no de asesoramiento legal. Otras jurisdicciones tratan estos conceptos de forma distinta. Verifique el texto vigente y su situación con un abogado cualificado.

## Relevante para

[Software & SaaS](https://contracko.com/es/sectores/software-saas)[Construcción](https://contracko.com/es/sectores/industria-construccion)[Consultoría](https://contracko.com/es/sectores/consultoria)[Industria manufacturera](https://contracko.com/es/sectores/fabricacion)[Logística y distribución](https://contracko.com/es/sectores/logistica)

## Cláusulas relacionadas

- [Termination for Convenience Clause](https://contracko.com/es/biblioteca-de-clausulas/resolucion-por-conveniencia)
- [Force Majeure Clause](https://contracko.com/es/biblioteca-de-clausulas/clausula-de-fuerza-mayor)
- [Liquidated Damages Clause](https://contracko.com/es/biblioteca-de-clausulas/clausula-penal)

## Términos relacionados

- [Termination](https://contracko.com/es/glosario/resolucion)
- [Breach of contract](https://contracko.com/es/glosario/incumplimiento-de-contrato)
- [Rescission](https://contracko.com/es/glosario/rescision)

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- Los riesgos y obligaciones afloran automáticamente
- Los recordatorios le ayudan a actuar antes de que las fechas se escapen

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## Preguntas frecuentes

Preguntas comunes sobre esta cláusula.

- **Q:** Do I always need a notice of default before terminating in the Netherlands?
  **A:** Often yes. Unless performance is permanently impossible or a deadline has passed, BW generally requires putting the party in default with a cure period first.

- **Q:** Is any breach enough to terminate under BW 6:265?
  **A:** In principle, but a breach that is too minor given its consequences does not justify dissolution; parties often narrow this by contract.

- **Q:** What happens to payments already made after a contract is dissolved?
  **A:** Dissolution triggers a mutual duty to undo what has been performed (ongedaanmaking) under BW 6:271, so payments and deliveries must be settled; only partly performed contracts may allow a reasonable price claim.

- **Q:** Can a party terminate immediately for insolvency of the other?
  **A:** Yes, if the clause lists insolvency as an automatic termination trigger. Without such a clause, insolvency alone is not necessarily a breach, and termination still depends on the contractual and statutory tests.

- **Q:** What damages can an innocent party claim after terminating for cause?
  **A:** Damages for all losses caused by the breach, including the cost of sourcing a replacement, subject to the duty to mitigate and any liability cap in the contract.

## No vuelva a perder nunca una cláusula de riesgo

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