Many times the excitement of a new business venture and the desire not to cause waves prevents people from taking that one little extra step to ask, "Okay what happens if I want to end the deal?"
Asking that little question and engaging the other side in an open discussion about what each side expects from each other at termination can avoid unnecessary headaches in the future.
Many contracts simply contain a venue/jurisdiction and perhaps an attorney's fees provision as the answer to addressing what will happen if a party wants to end (probably breach) the contract. A jurisdiction/venue/fee clause will set the basics for any future litigation, but litigation is usually not the most desirable or cost effective resolution.
Other provisions should be contemplated, like a liquidated damages provision, where a party willingly accepts that if he or she breaches the agreement that a monetary fee will apply. A required mediation provision can force people to talk the situation through, and since the great majority of lawsuits settle without resort to trial, contractual mediation can avoid wasting resources and time in the future.
Many of my business acquaintances here in north San Diego County comment that the days of the hand-shake deal are over, and how it was great in the past when if the relationship wasn't going the way it was foreseen the parties would just walk away. Those types of relationships are wonderful, but do not necessarily address risk management concerns.
Talk to a properly licensed attorney regarding how you can propose, draft or negotiate for contract terms that will help business relationships end in a predictable and hopefully peaceful way. Remember, ending a business relationship in a businesslike and agreeable way means preserving it for the future.
