Contract termination
Contract termination is the formal ending of a contractual agreement before or at its expiration date, triggered by either party under agreed conditions.
Contract termination can occur at the natural end of a contract, by mutual agreement, or unilaterally if one party triggers a termination clause (such as a material breach or convenience clause). Proper termination processes protect both parties and ensure clean offboarding.
Example: A SaaS customer invokes a termination for convenience clause, giving 30 days notice. The billing system automatically cancels the subscription at the end of the notice period, generates a final invoice, and processes any applicable refunds.
