Legal Question in Business Law in Illinois
Does this organization have any basis to cancel our contract? The Executive Director, who initiated our contract on 2/15/12 was just fired on 3/27/12. It concerns us that the turmoil in this organization may lead them to attempt to cancel our contract although we have completed all work to this point as required (please see termination clause):
9. Terminating the Agreement
This agreement will become effective when signed by both parties and will terminate on the earlier of the date Contractor completes the services required by this Agreement or the date a party terminates the Agreement as provided below.
With reasonable cause, either party may terminate this Agreement effective immediately by giving written notice of termination for cause. Reasonable cause includes:
a material violation of this Agreement, or
Client's failure to pay Contractor's fees as provided in this Agreement, where Contractor has demanded payment, in writing, and has not received payment at least 20 days after the date that such demand was sent to Client.
In addition, either party may terminate this Agreement at any time by giving 30 days written notice of termination.
Contractor shall be entitled to full payment for services performed prior to the date this Agreement is terminated.
1 Answer from Attorneys
"In addition, either party may terminate this Agreement at any time by giving 30 days written notice of termination." This language gives either and each party an out on 30 days written notice to the other.
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