An aspect of the outsourcing contract's Terms and Conditions. The parties must agree and set out the basis for any termination of the agreement. This will usually only be for situations where one or other is in breach or default of its obligations as specified in the agreement. This clause will set out what notice is required to be given to the other party and will generally allow a period for the default or breach to be remedied before the other party is entitled to exercise remedies under the agreement.

Contributed by: ITANZ, Information Technology Association of New Zealand