Termination for cause (also called termination for default (TFD)) is a contract provision that permits a party completely or partially to terminate performance of the contract for material breach or other stated causes.
When there is a "for cause" event, the contract usually requires that the party give the other party notice that adequately identifies the reasons for the alleged "for cause" event, and provides a period of time for the other party to cure the problem(s). Only if that party fails to rectify the problem(s) within the prescribed cure period does the affected party have the right to terminate the agreement.
Sample clause Edit
|“|| Customer may terminate the whole or any part of this Agreement, by written notice of default to Vendor, in any one of the following circumstances:
Upon termination, Customer may procure, upon such terms as it shall deem appropriate, services similar to those so terminated. Vendor shall continue performance of this Agreement to the extent not terminated.