To ensure that you can be released from a contract if the relationship sours, you should include a termination clause in the contract that outlines the conditions under which either party can terminate the agreement. This clause should specify the notice period required for termination, any penalties for early termination, and any procedures that must be followed.
It is also worth bearing in mind the parties common law right to accept a repudiation of the contract, granting the aggrieved party the choice of whether to end the contract or to affirm it and carry on as is (with both options enabling damages to be claimed by the aggrieved) where a substantial breach has occured. As a practical step, parties to a contract may wish to ensure that such right has not been expressly excluded from the contract.
Additionally, you may want to consider including a mediation or arbitration clause that provides for a resolution process in the event of a dispute. It’s important to have a clear understanding of the terms and conditions of the contract before signing it. If your contract is silent on this point or is not clear then we can still help with our expert legal advice and years of commercial experience.
