Termination clauses often look fine until you read the money after termination terms.
Common commercial questions
- Refunds: are prepaid fees refundable, prorated, or non-refundable?
- Fees earned: does the vendor keep fees already paid for the current period?
- Wind-down obligations: is transition assistance required? for how long? paid or unpaid?
- Survival: which obligations survive termination (payment, confidentiality, IP, audit, indemnity)?
Commercial lens
Two termination clauses can look identical until money and survival terms are included.
That’s where “clean exit” becomes “expensive exit.”