Term of Agreement Default Termination Clause Samples
The 'Term of Agreement; Default; Termination' clause defines the duration of the contract, outlines what constitutes a breach or default by either party, and specifies the conditions under which the agreement can be ended. Typically, this clause will state the start and end dates of the agreement, describe actions or failures that would be considered defaults (such as non-payment or failure to perform obligations), and detail the process for terminating the contract, including any required notice periods. Its core function is to provide clear guidelines for the lifespan of the agreement and the procedures for addressing breaches, thereby protecting both parties and ensuring predictability in the event of problems.
Term of Agreement Default Termination. 6.1 This Agreement shall continue for the minimum term specified as the “minimum term” in the SystemShield Maintenance Agreement, and shall renew automatically on an annual basis thereafter. Either party may terminate this Agreement on expiry of the minimum term or on expiry of any subsequent full year of service, at least sixty (60) days but not more than one hundred and twenty (120) days before the renewal date by providing written notice to the other party.
6.2 If the Customer seeks to terminate this Agreement other than in accordance with sub-clause 6.1 or other relevant clauses of this Agreement, and M12 accepts such termination, the Customer shall pay to M12 all payments for the remainder of the then current year of the Agreement, plus 80% of the Charge for the next year (s) of the minimum term of the Agreement. This sum shall be payable as liquidated damages as an agreed estimate of M12’s probable loss.
6.3 If either party commits any material breach of this Agreement and fails to remedy it within 30 days of receiving written notice from the other party or shall convene a meeting of its creditors or if a proposal shall be made for a voluntary arrangement within Part 1 of the Insolvency Act 1986 or a proposal for any other composition scheme or arrangement with (or assignment for the benefit of) its creditors or shall be unable to pay its debts within the meaning of Section 123 of the Insolvency Act 1986 or if a trustee receiver administrator or similar officer is appointed in respect of all or part of the business or assets or if a petition is presented or a meeting convened for the purpose of considering a resolution or other steps are taken for the winding up of the party or for the making of an administration order (otherwise than for the purpose of amalgamation or reconstruction) it shall constitute a repudiation by that party of its obligations under this Agreement, and at any time thereafter the other party may by written notice suspend performance of or terminate this Agreement.
6.4 If after five years from the date on which the System was originally brought into service M12 reasonably forms the opinion that the Service can no longer be provided economically, M12 shall notify the Customer of the options which it considers are available. Should M12 and the Customer fail to agree on a course of action, M12 shall be entitled to terminate the Agreement on sixty (60) days written notice.
6.5 If M12 feel that the software level of the maintained sy...
Term of Agreement Default Termination