English Commercial Law - boilerplate clauses (Termination)
When there is a long-term supply contract, it is crucial to carefully consider the contract's duration and termination clauses. In reality, it is astonishing how often parties neglect to incorporate these clauses, and nobody realizes until there is a problem and they realize they have no way out of the contract. If the contract has an indefinite duration, it would typically include a notice time for termination, a list of circumstances, such as a significant violation, that would enable one or both parties to terminate, as well as details regarding the termination's repercussions. Note that a clause requiring automatic termination due to the buyer's insolvency will be unenforceable under the Corporate Insolvency and Governance Act 2020.
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