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Clause Of The Month

Long-term services contracts, such as contracts for outsourcing, generally provide the customer only limited rights to terminate. Typically, the customer is permitted to terminate the contract for the vendor's uncured material breach or upon the filing of a bankruptcy petition by or against the vendor. Even if the customer has the right to terminate for convenience, it is often conditioned on the customer's paying a substantial amount.

5 minute readAugust 23, 2003 at 03:19 PM
By
Bryan Alter
Clause Of The Month

Long-term services contracts, such as contracts for outsourcing, generally provide the customer only limited rights to terminate. Typically, the customer is permitted to terminate the contract for the vendor's uncured material breach or upon the filing of a bankruptcy petition by or against the vendor.

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