Contract Termination: Payment, Work Product, and Handover

The sentence "either party may terminate" does not explain how the work ends in practice.

By the termination date, the supplier may have completed part of the scope, received an advance, purchased materials, or created interim work product. The client may hold the other party's equipment, credentials, and documents.

What should be defined

• the effective termination date;
• the notice period;
• payment for work actually completed;
• return of unused advance payments;
• handover of unfinished work and source materials;
• return of property, documents, and access credentials;
• terms that survive termination.

SmartSplitAI helps teams read termination together with payment, acceptance, ownership, and confidentiality. The practical exit process is usually spread across those connected clauses.

Termination should do more than end the agreement. It should let both sides calculate what remains due and transfer what has already been created.