CCAK · Question #60
What type of termination occurs at the initiative of one party, and without the fault of the other party?
The correct answer is C. Termination at the end of the term. Termination at the end of the term refers to the natural expiration of a contract when the agreed-upon period concludes. This is initiated by one party's decision not to renew, and occurs without any breach or fault by the other party - the contract simply runs its course…
Question
What type of termination occurs at the initiative of one party, and without the fault of the other party?
Options
- ATermination for cause
- BTermination for convenience
- CTermination at the end of the term
- DTermination without the fault
How the community answered
(31 responses)- A3% (1)
- B6% (2)
- C87% (27)
- D3% (1)
Explanation
Termination at the end of the term refers to the natural expiration of a contract when the agreed-upon period concludes. This is initiated by one party's decision not to renew, and occurs without any breach or fault by the other party - the contract simply runs its course. Termination for cause (A) is triggered by a breach or failure of the other party. Termination for convenience (B) typically refers to an early termination right exercised before the contract period ends, often with a notice period. Termination at end of term is the standard, fault-free conclusion of a contractual agreement when one or both parties choose not to extend or renew.
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