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Simple English definitions for legal terms
cancellation clause
Read a random definition: concursus debiti et crediti
A quick definition of cancellation clause:
A cancellation clause is a part of a contract that allows one or both parties to end their obligations under certain conditions. It is also called a termination clause. This means that if certain circumstances arise, the contract can be cancelled or terminated. In the past, "cancellatura" referred to lines drawn on a will to show that it was revoked, and "cancelli" referred to the rails or latticework enclosing the bar of a court.
A more thorough explanation:
A cancellation clause is a part of a contract that allows one or both parties to cancel their obligations under certain conditions. It is also known as a termination clause.
For example, a cancellation clause may allow a buyer to cancel a purchase agreement if the seller fails to deliver the goods on time. Or, it may allow a landlord to cancel a lease agreement if the tenant fails to pay rent for a certain number of months.
These examples illustrate how a cancellation clause can protect the interests of both parties in a contract. It gives them the flexibility to end the agreement if certain conditions are not met, without having to go through a lengthy legal process.