The termination clause is usually included in a contract to use a website or application. This is a popular standard for websites or apps that allow user content, including SaaS apps. In addition, under certain contracts, the parties may request termination if the contract becomes too expensive to continue operating in the agreement. (a) bad belief or abuse of discretion. “The federal courts that have put forward the termination clause in federal government contracts have said that the clause does not give the government the power to resign as it sees fit. Where a licensed contractor can prove that the federal government acted in bad faith or abused its discretion when terminating the contract for convenience, termination results in a breach of contract that could give the terminated party the right to violate contractual damages.” Termination of convenience clauses – unlimited or limited power to terminate? Robert K. Cox, Williams Mullen, July 12, 2013. failure, vagueness or violation are serious enough to substantially harm or reduce the value of the entire agreement, not only a particular statement of work, and all the termination methods mentioned above are tailored to any commercial contract, but how the parties may ultimately terminate the contract, depending on: how the termination clause was drafted varies. All of the above methods for terminating the contract have been legally recognized over the years. there exists or will be a law that unlawfully or otherwise prohibits the performance of this Agreement, or termination for convenience means termination by prior notification to the other party without justification. Parties may, for any reason, provide notice of convenience. Private business transactions may also be terminated by the parties without justification with reasonable notice within the meaning of a clause in the agreement authorizing such termination. Some contracts expire after a certain period of time.