As one court observed, termination is typically “of little interest or concern to the parties” so long as they execute the agreement and are “getting along.” 1 Why then should commercial parties burden their negotiations with ominous talk of termination related events? Does it make sense to even review that peculiar “termination for convenience” clause located at the end of a standard boilerplate agreement? Termination discussions often take a back seat in the conference room where the negotiating energy is spent primarily on price, quality, and delivery terms.
This information or any portion thereof may not be copied or disseminated in any form or by any means or stored in an electronic database or retrieval system without the express written consent of the American Bar Association.īetween suppliers and manufacturers, planning for the termination of a supply agreement during its negotiation may seem counterintuitive, awkward, or perhaps insignificant.
