Annuleringsbeding
Cancellation clause
A cancellation clause is a contractual provision that entitles a party to terminate or cancel the agreement upon the occurrence of circumstances previously agreed upon.
A cancellation clause is a provision in an agreement by which the parties stipulate that the agreement may be cancelled without any requirement of default or dissolution. It affords the parties the opportunity to unilaterally terminate the agreement under specified conditions, such as the failure to obtain financing or the occurrence of force majeure.
This clause is relevant in that it prevents a party from remaining involuntarily bound to an agreement that is no longer feasible or desirable. In practice, it is frequently employed in contracts for sale, lease and services in order to afford flexibility and legal certainty to both parties.
“The purchase agreement included a cancellation clause entitling the buyer to terminate the transaction if financing was not secured within four weeks.”
Related terms
Need legal advice?
Schedule a free consultation with one of our specialists