GlossaryEN1 min readUpdated: Jun 13, 2026

termination clause

A termination clause sets out the conditions, notice periods, and procedure by which a contract may be ended by one or both parties.

Quick Answer

Last updated: 13 June 2026Published: 27 January 2026

Source: https://www.investopedia.com/terms/t/termination-clause.asp

Category

Incoterms 2020 Simulator: Who bears costs & risk?

Reading time

1 min

Words

Mentioned in

–

Definition & Explanation

A termination clause sets out the conditions, notice periods, and procedure by which a contract may be ended by one or both parties. It specifies the form of notice required, permissible grounds for termination, and post-termination obligations such as settlement of outstanding invoices or return of documents. In logistics and freight forwarding contracts, clear termination clauses protect both the freight forwarder and the shipper by establishing certainty around contract exit and wind-down procedures.

Next steps

Tools that match this term

Compare IncotermsClarify duties, cost and riskOpen Find HS codeDetermine the tariff number for customsOpen Calculate customs valueWork out import duties and customs valueOpen Calculate transit timeEstimate duration per transport modeOpen

Related Terms

⚖️ ICC Incoterms 2020

Incoterms 2020 Simulator: Who bears costs & risk?

Analyze all 11 Incoterms 2020: cost matrix, risk timeline, insurance gap detector and customs responsibility – free, no login required.

Incoterms Simulator →

Logistics knowledge straight to your inbox

Weekly: Top news, industry facts and insights from the world of logistics – free.

termination clause

Next steps

Related Terms

Incoterms 2020 Simulator: Who bears costs & risk?

Logistics knowledge straight to your inbox

Community Questions & Answers