cancellation clause


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cancellation clause

A clause in a contract or lease that allows one or either party to cancel it upon the happening of certain named events other than a default.It is most often encountered:(1) in the lease for a single-tenant commercial building or house, allowing the landlord to cancel the lease upon sale to another owner who wishes to occupy the property rather than use it as an investment, and (2) in a commercial lease for a small-space user who might stand in the way of expansion by a larger tenant.Well-negotiated leases include a provision for some sort of compensation to the tenant if this happens.

References in periodicals archive ?
After eliminating the buyer's clause limiting acceptance to the terms of the offer and the seller's cancellation clause, the court reinstated the cancellation clause as a term of the contract through evidence of the parties' course of dealing.
The new policies will also have a cancellation clause built in for travelers booked on a cruise ship that will oblige them to pay a fee to travel agencies if they cancel.
Among them is to generate a written agreement covering services, investment (price) and a cancellation clause, and avoid joining groups unless you get business from them or derive some other direct benefit.
The positions are always the same-builders charge that distributors take the commission but add little value when it comes to providing product-trained sales people or maintenance services; distributors complain that they are bullied by the builders, given too little support, and serve at the whim of the builder while dangling at the end of a 30- or 60-day cancellation clause in their contractual agreements.
If things do not work out, there is a six-month cancellation clause on either side.
also offers a 60-day cancellation clause, protecting the user from technological obsolescence and allowing an upgrade or change of equipment on short notice.
cancellation clause must provide that the Authority is to receive ten (10) days written
But there is a cancellation clause that Inter will pay me if they want my departure and another that I will pay Inter if I want to leave," News of the World quoted Mourinho, as saying.
The FSAsaid the firm had invoked a cancellation clause which was not generally intended to be used in these circumstances.
Many contracts include a cancellation clause of some kind.