Termination for Cause Clause
Allows a party to end the contract when the other materially breaches, often after a chance to cure.
Ce que c'est
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.
Pourquoi c'est important
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.
Comment l'appliquer
- 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.
Exemple de formulation
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.
Conseils de négociation
- • Negotiate which breaches are "incurable" and allow immediate termination.
- • Consider contractually narrowing the broad BW 6:265 right for minor failures.
Pièges courants
- • Terminating without the required notice of default, making the termination wrongful.
- • Leaving "material breach" undefined, so any minor default is argued to justify exit.
Références juridiques
- BW 6:265 Dissolution for breach (ontbinding) Droit néerlandais
- BW 6:74 Damages for non-performance Droit néerlandais
Sauf mention contraire, les références renvoient au droit néerlandais (Burgerlijk Wetboek, le Code civil néerlandais) ; les instruments de l'UE tels que le RGPD s'appliquent dans toute l'UE. Il s'agit d'informations générales, pas de conseils juridiques. D'autres juridictions traitent ces concepts différemment. Vérifiez le texte en vigueur et votre situation avec un avocat qualifié.
Foire aux questions
Questions courantes sur cette clause.