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 ?
Adding a cancellation clause to your contract is one way to protect yourself, Tenenbaum said.
If it is longer, it might be trying to hide something, like a cancellation clause.
The cancellation clause details how the insured or the insurer can cancel the policy.
The contract includes a cancellation clause for the second vessel.
We had a five-year lease on office space in Oak Brook, and we had one client with a 90-day cancellation clause.
gov/cemetery) advises making sure any contract with a specific cemetery or funeral home includes a cancellation clause (some establishments also offer relocation clauses to cover burials occurring out of state).
Ensure that you have a new-type cancellation clause based on higher headquarters issuing rules or regulations that will torpedo the local event.
The return to a market situation would obviously restore fair competition to the industry but the idea is still beset by major difficulties: costs are much higher than those pertaining prior to September 11, companies are at a disadvantage compared with airlines from third states that enjoy common funds, insurance companies have a cancellation clause which allows them to terminate contracts within a short period (seven days).
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.
A cancellation clause in a contract says to the signer, "If you cancel your program by X date, you are obligated to reimburse the facility Y dollars.