cancellation clause
/kænˌsɛlˈmeɪʃən ˈklɔːz/ · can·cel·la·tion clause
noun
- A provision in a contract or agreement that outlines the terms and conditions for cancellation, including notice periods, penalties, and consequences. The cancellation clause in the rental agreement stated that the tenant had to provide 30 days' notice before terminating the lease.
- A clause in a contract or agreement that allows one or both parties to cancel the agreement under specific circumstances, such as non-payment or breach of contract. The cancellation clause in the sales contract gave the buyer the option to cancel the purchase if the seller failed to deliver the goods on time.
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Did you know? Cancellation clauses are often used in business and commercial contracts to protect both parties from potential risks and disputes.