Termination clause

Published by a LexisNexis Commercial expert
Precedents

Termination clause

Published by a LexisNexis Commercial expert

Precedents
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    1. 1

      Termination

      1. 1.1

        This Agreement may be terminated by either party giving a minimum of [enter number] months’ notice in writing to the other party, such notice not to expire prior to the [enter number eg first] anniversary of the date of this Agreement.

      1. 1.2

        Either party may terminate this Agreement at any time by giving notice in writing to the other party if:

        1. 1.2.1

          the other party commits a material breach of this Agreement and such breach is not remediable;

        1. 1.2.2

          the other party commits a material breach of this Agreement which is not remedied within [14] days of receiving written notice of such breach;

        1. 1.2.3

          the other party has failed to pay any amount due under this Agreement on the due date and such amount remains unpaid within [30] days after the other party has received notification that the payment is overdue; or

        1. 1.2.4

          any consent, licence or authorisation held by the other party is revoked or modified

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Jurisdiction(s):
United Kingdom
Key definition:
Insolvency definition
What does Insolvency mean?

This can be defined by two alternative tests (Insolvency Act 1986, s 123):

cash flow test: a company is solvent if it can pay its debts as they fall due, no matter what the state of its balance sheet (Re Patrick & Lyon Ltd [1933] Ch 786);

• balance sheet test: a company which can pay its debts as they fall due may be insolvent if, according to its balance sheet, liabilities (including contingent liabilities) exceed assets.

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