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Contract SolicitorMary Molloy Solicitors

Termination and Notice Clauses

The termination clause is the price of admission read backwards: how do you get out, how fast, and at what cost? Check the exits before you walk in.

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The two kinds of termination

For convenience: either party (or, in one-sided drafts, only one) may end the contract on notice, no reason required. The commercial questions are the notice length and any early-exit charges. For cause: termination on defined events — material breach, insolvency, change of control. "Material breach" is a litigated phrase; better drafts define it, give a cure period for remediable breaches, and specify notice mechanics precisely.

What Irish law adds — and doesn't

If the contract is silent on duration, Irish law will often imply that an ongoing commercial relationship is terminable on reasonable notice — and what is reasonable (weeks, months, occasionally longer) is decided after the fact, by a judge, at your expense. Separately, the common law right to terminate for repudiatory breach survives alongside the contract's machinery unless clearly excluded. The traps live in the interaction: terminate under a contractual clause without meeting its conditions and you may yourself have repudiated the contract — the classic own-goal of wrongful termination.

Drafting and using the clause

  • Symmetry check: can both sides exit on comparable terms, and if not, is the asymmetry priced?
  • Cure periods for remediable breach — with a clear mechanism for what notice must say
  • Notice mechanics matter: method, address, deemed delivery — courts hold parties to them
  • Consequences of termination: accrued rights, payment for work done, handover, data return, clauses that survive
  • Before terminating in real life: take advice first. The difference between lawful termination and repudiation is usually procedural, and it is decided by what you did in the 48 hours around the notice

How our fees work

You get a fixed quote in writing before any work starts — no hourly-rate surprises and no meter running while you think. If the scope changes, the quote is revised in writing before we continue. In contentious business, a solicitor may not calculate fees or other charges as a percentage or proportion of any award or settlement. How contract solicitor fees work in Ireland →

Frequently asked questions

Can I terminate a contract that has no termination clause?

Fixed-term contracts generally run their term. Indefinite commercial arrangements are usually terminable on reasonable notice implied by law — but 'reasonable' is uncertain and fact-dependent. And serious (repudiatory) breach by the other side permits termination regardless. Advice before acting is cheaper than a wrongful termination claim after.

What is a material breach?

A breach serious enough to trigger the clause — but unless defined, it borrows uncertainty from case law about seriousness and consequences. Good drafts define it or list examples; good terminators document the breach and follow the notice mechanics to the letter.

Do I have to give the other side a chance to fix the breach?

If the clause provides a cure period, yes — skipping it invalidates the termination. If it doesn't, the answer depends on the clause and the breach; some breaches are incurable. This is precisely the moment for advice before the letter goes out.

Talk to a solicitor who reads contracts for a living. Call Mary Molloy Solicitors today.

Whether you are drafting terms for your business, handed a contract to sign, or unsure what a clause commits you to, an early conversation costs little and prevents a lot.

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richardoshea@marymolloysolicitors.com · Dublin: The Ormond Building, 31–36 Ormond Quay Upper, Dublin 7, D07 EE37 · Kilkenny: 2 Rose Inn Street, Kilkenny, R95 W58D
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