Escalation and exit clause

Also called Termination clause, Notice period, Break clause

How a contract ends. Worth reading before you sign, because it is read at the point when everybody is already unhappy.

What it means

Termination provisions set out how and when either party may end a contract: for convenience on notice, for material breach, on insolvency, or at the end of a fixed term.

They also cover what happens afterwards — payment for work done, return of data and property, and which obligations survive.

Why it matters

An agreement you cannot leave is a liability regardless of how good it looked at signing. Auto-renewal with a short cancellation window is the most common trap and is genuinely costly.

For a supplier, an over-generous termination right on the customer's side undermines the value of the contract.

What it looks like in practice

Check: the notice period, whether either side can terminate for convenience, what counts as material breach and whether there is a cure period, auto-renewal and the window to prevent it, and any early termination charge.

Then check the consequences: is your data returned in a usable form, and how long do you have to retrieve it?

Diarise renewal dates the day you sign, with a reminder well before the notice window opens.

What to watch out for

Evergreen contracts that renew for a further full term if notice is missed by a day.

Termination rights that exist only for one side.

Survival clauses that keep confidentiality or restrictive covenants alive long after the contract ends — often reasonable, and worth knowing about.

Where to get proper advice

A commercial solicitor for contracts of any size. For small subscriptions, a shared calendar of renewal dates does most of the work.