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Week 7 - Notes

Even at the beginning of a contract, you should be thinking about the end of it. Think of the end of the
“relationship”, the exit strategy.
Termination must be properly negotiated.
Termination for Convenience: It is not working out, so in ‘x’ number of days the contract will be
terminated. (Same day is categorized as: xxx)
Why shouldn’t this be used?
There may still be money or services owed by the business trying to get out of the contract.
Value for your business is in the long-term. Setting up for success in the future, you will want to
lock in with the other business.
Return on investment is contingent on the longevity of the relationship.
Unilateral Termination for Convenience: One party has the right to leave at any time, whereas the other
party does not.
When would it be favorable?
Allows for more bargaining power and a wider variety of options.
In exchange for unilateral, a party may ask the other for something in return such as exclusivity.
Termination for Cause: There has been a breach of contract in one of the areas, such as not receiving a
product after providing them with money if that is in the agreement.
Representations and Warranties: Set out mutual expectations of the party as to what is going on
and give factual information to the other party about your business.