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Quick Facts — Early Termination Agreement Lawyers

What is Early Termination Agreement Review?

An early termination agreement is a legal document that terminates a contract before its expiration date. It outlines the terms and conditions for how parties can terminate earlier than expected. By having these terms down in writing, it minimizes the risk of legal disputes.

If you need to review an early termination agreement, read the rest of this article to learn more about what to look for in the document, how to review it for clarity, and why you should hire a lawyer for help with the early termination agreement review process.

What are Key Terms to Review in an Early Termination Agreement?

An early termination agreement should contain the following information, which you should review for clarity.

  • Original agreement. Details about the original agreement should be identified, such as the parties’ names and date of the original contract’s termination.
  • Effective termination date. This provides the specific date on which the agreement will end. You also want to know if the termination is immediate or has a transition period.
  • Mutual release of claims. The agreement must state if the parties release each other from claims arising from the original contract.
  • Payment duties. This states if there are any outstanding payments, such as final invoices, that need to be fulfilled.
  • Post-termination duties. There might be other activities that need to be completed or will continue after the contract ends, such as confidentiality obligations.
  • Representations and warranties. These are statements parties might make to each other, such as stating that they have authority to end the contract.
  • Dispute resolution. To prevent conflict over terms, the parties should make use of a dispute-resolution method, such as mediation or arbitration.

What are Tips to Review an Early Termination Agreement?

When reviewing an early termination agreement, you’ll want to bear some important things in mind so you don’t miss any red flags.

Be Clear and Specific

You should check that the agreement is detailed and specific. Any vague wording can cause confusion or disputes.

Discuss Property and Materials Return

The agreement must clearly state if any equipment, intellectual property (IP), keys, equipment, or other items must be returned after termination. There should be deadlines by which parties have to return the items so that there are no misunderstandings.

In the case of data, some parties might agree that it gets destroyed after the contract ends. Be clear about how materials should be treated to prevent issues, such as prohibited usage.

Include Transition Activities

Reviewing your early termination agreement is a good opportunity in which to make revisions to the contract. If the document doesn’t include transition activities, such as transferring records or projects, or completing outstanding work by specific deadlines, they should be stated clearly.

Consider Confidentiality

The agreement should state all post-termination obligations, with a common one being confidentiality duties. There should be mention of permitted disclosures, such as legal or regulatory disclosure, so that terms are reasonable.

Review Release Language

If there is a release clause in the early termination agreement, you must check it closely so that you’re not agreeing to waive claims that you don’t want to give up. The release might only refer to issues related to the termination, but in other cases it might also cover future claims post-termination.

Check for Surprise Fees

When terminating a contract early, there might be fees that apply. It’s important to clarify all costs and fees prior to signing off on the agreement. These include admin costs, equipment return costs, and others.

Confirm Mutual Consent

It’s important for both parties to agree to the early termination. The agreement must be written in clear, simple wording that both parties understand to prevent future disputes about termination validity.

Do You Need a Lawyer for Early Termination Agreement Review?

Although you don’t always need to hire a lawyer for help with reviewing an early termination agreement, a lawyer can assist you in various ways, such as by identifying risks.

Here is what a lawyer will do during the review process:

  • Clearly define the termination date.
  • Determine that parties have authority to enter the agreement.
  • Consider if third-party consent is required.
  • Assess all financial risks, such as outstanding payments and refunds.
  • Review release clauses, such as what claims are released and if there are exceptions, with common examples being fraud or misconduct. This serves to protect your interests.
  • Identify post-termination duties so that you understand what’s required, such as non-disclosure requirements, non-solicitation provisions, and non-compete provisions.
  • Negotiate with the other party for better contract terms, such a short survival period.

Where to Find a Lawyer for Early Termination Agreement Review

If you need to hire a lawyer to review your early termination agreement, you should look for one on an online legal platform such as ContractsCounsel.

As one of the largest online legal marketplaces that gives you access to a network of vetted lawyers, ContractsCounsel makes it easy to find the right lawyer for your specific contract drafting and review requirements.

It’s simple to request that a qualified lawyer on the ContractsCounsel platform reviews your agreement. Here are four steps to follow online:

1. Go to the ContractsCounsel marketplace, where you can post your project for free. Include some information about your request so that you’ll be directed to the most suitable lawyer.

2. Receive lawyer bids. Instead of looking for the right lawyer, you’ll receive multiple bids from lawyers directly on the platform who can assist you.

3. Review lawyer profiles. Once you receive the lawyer bids, you should review the lawyers' profiles. There’s lots of info on the platform to help you choose the best lawyer, such as their location, client ratings, years of experience, and field of expertise.

4. Connect with a lawyer you think is best suited to your requirements and hire them to review your agreement for clarity and validity.


ContractsCounsel is not a law firm, and this post should not be considered and does not contain legal advice. To ensure the information and advice in this post are correct, sufficient, and appropriate for your situation, please consult a licensed attorney. Also, using or accessing ContractsCounsel's site does not create an attorney-client relationship between you and ContractsCounsel.


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