Also known as:rights to terminate · termination right · right of termination
Written by attorneys · grounded in primary & secondary sources — see below
A right that permits a party to end an agreement, estate, or other legal relationship upon the occurrence of specified conditions or breach by the other party. The remedy requires the holder to take affirmative steps such as vacating the premises or providing notice to effect termination. It is distinct from rescission because it responds to a breach arising under the contract itself rather than an independent duty.
Sources & Authorities· 10 primary sources
Select any source to read its text and confirm it supports the definition.
Cases
Uniform Acts
Restatements
Dictionaries
How it applies
Common Examples
6
Tenant Vacates After Mold Discovery
Stone Peak leased a training facility from Pine Play. After mold appeared in the locker rooms, the team removed its equipment and vacated mid-season. Its manager telephoned and emailed Pine Play stating the lease must end because of the health hazard. The actions satisfied the requirements for exercising the right because the tenant vacated and gave the landlord direct knowledge of the decision and reason.
Merger Financing Deadline Passes
Trans Union entered a merger agreement with a Marmon affiliate. The purchaser had until October 10 to obtain satisfactory financing or it could end the deal. No financing commitment arrived by the deadline. The purchaser therefore exercised its contractual right and terminated the merger agreement without liability.
Smith v. Van GorkomDel. Supr., 488 A.2d 858, 872 (1985)
Landlord Ends Tenancy After Complaint
A month-to-month tenant reported housing code violations to authorities. The landlord then served notice to end the tenancy. The tenant argued the termination was retaliatory. The court examined whether the landlord's right to terminate remained absolute or was limited by the tenant's protected activity.
Edwards v. Habib397 F.2d 687, 699 (D.C. Cir. 1968)
Spousal Notification Requirement
Pennsylvania required a married woman seeking an abortion to notify her spouse. The provision gave the woman a right to terminate the pregnancy but imposed an additional procedural step. The Court assessed whether the notification rule unduly burdened that right.
Planned Parenthood of Southeastern Pennsylvania v. Casey505 U.S. 833, 112 S. Ct. 2791, 120 L. Ed. 2d 674 (1992)
State Criminal Abortion Ban
Texas criminalized most abortions. A woman challenged the statute claiming it violated her right to terminate a pregnancy. The Court evaluated whether the Constitution protected that right against state prohibition in the early stages of pregnancy.
Roe v. Wade410 U.S. 113 (1973)
State Gestational Age Limit
Mississippi enacted a law banning most abortions after fifteen weeks. A clinic challenged the statute as an unconstitutional restriction on the right to terminate a pregnancy. The Court considered whether the Constitution continued to protect that right against state regulation.
Dobbs v. Jackson Women’s Health Organization142 S. Ct. 2228 (2022)
Common questions
Frequently Asked
5
What steps must a tenant take to exercise the right to terminate a lease under the Restatement?+
The tenant must vacate the property while the right exists, follow any lease provisions on termination method, and if none exist, take reasonable steps to inform the landlord of the decision and reason. These requirements ensure the landlord receives clear notice that the lease has ended.
Supporting sources
How does the right to terminate differ from rescission?+
The right to terminate ends contractual relations when the other party breaches a duty arising under the contract. Rescission applies when the breach involves a duty independent of the contract. The distinction determines available remedies and whether restitution is required.
Can a power of termination in a deed be assigned to a third party?+
Under traditional common law a power of termination is not alienable inter vivos. It may pass by descent or devise but an attempted assignment conveys nothing and leaves the assignee without standing to enforce the right.
Supporting sources
Does a merger automatically trigger an anti-assignment clause that allows lease termination?+
Statutory merger provisions vest contract rights in the survivor without a transfer. If the clause prohibits only transfers the merger does not activate the termination right. The landlord may still argue the change in tenant identity breaches the clause if the language is broad enough.
Supporting sources
When does a conditional interconnection approval satisfy a partnership dissolution trigger?+
The approval must match the economic arrangement the partners contemplated. A heavily conditioned or revocable document that substantially alters project costs and retains a termination right does not prevent dissolution under the agreement.
Supporting sources
her pregnancy in its early stages, Roe v. Wade , 410 U. S. 113 (1973), that definition of liberty is still questioned. At issue in these cases are five provisions of the Pennsylvania…
right
. In a related transaction, Trans Union has agreed to sell…
the offer if any of several specified events occurred. El Paso management initially opposed the takeover, but its shareholders responded favorably, fully subscribing the offer by the…
a tenancy is not absolute, but felt that any limitation on his prerogative had to be based on specific statutes or very special circumstances.[^maj-5] Here, the court concluded, the…
Business Associations Agency and PartnershipDissolution · General partnerships, limited partnerships, or limited liability partnershipsUBEFoundational