Termination Without Cause Service Agreement

The contract may also involve triggering events that result in termination. Some triggering events may allow parties to request termination when the event occurs. For example, many companies are created to handle a particular event or only work for a limited time. At the end of a certain period of time, the contract could indicate that it will end automatically, unless the parties decide to continue their cooperation. For example, a limited liability company created to sell T-shirts during the World Series may contain a clause that will trigger the termination of the agreement after the end of the World Series. All of the above methods of contract termination are suitable for any business agreement, but the manner in which the parties permanently terminate the contract may vary depending on the wording of the termination clause. All the methods of termination of the contract mentioned above have been legally recognized over the years. In Waksdale v. Swegon North America Inc., 2020 ONCA 391 (CanLII), the Tribunal considered a relatively standard application for summary judgment on allegations of unlawful dismissal. The main issue of the claim was the legal effect of a written employment contract between the parties.

The worker took the position that the termination clause in his employment contract was not repudiated because it attempted to fall below the minimum standards of the Employment Standards Act, 2000, N/A 2000, c. 41 (ESA). The employer acknowledged that the “dismissal for cause” clause in the agreement was not applicable because it was contrary to the ESA. However, it argued that the “termination of the employment relationship with dismissal” provision of the agreement was valid and could rely on it, as the employer did not put forward any reasons. The rights to terminate the contract are often found in contractual clauses that allow a party to terminate the contract for cause (fault) or without cause (without fault). The reason is often defined by the parties – for example, the bankruptcy of a party could be a valid reason to request termination of the contract.