An Independent Contractor Agreement defines engagement terms for non-employee service providers. This playbook guides drafting on scope of work, ownership of deliverables, and classification risk mitigation.
Why This Matters: Appropriate termination provisions mitigate the risk of unexpected liabilities, reduce exposure to wrongful termination claims, and allow for an orderly offboarding.
Negotiation strategy
If you're the Company:
Ensure the termination clauses provide flexibility for strategic pivots. Negotiate for reasonable notice periods and clear cure rights to minimize disruption.
If you're the Contractor:
Seek to include provisions that protect against abrupt terminations. Advocate for longer notice periods and detailed wind-down processes to safeguard interests.
Essential elements
1
Term of Agreement
Defines contract duration and renewal.
2
Termination for Convenience
Allows termination with notice.
3
Cure Rights
Specifies breach and cure period.
Action framework
ACCEPT
Propose edits to align notice periods with industry standards and clarify cure rights.
EDIT
Reject clauses that allow termination without sufficient notice or lack cure provisions.
ADD
Add clauses for wind-down processes and jurisdiction-specific requirements.
PRO TIP
Always ensure termination clauses are clear and balanced to prevent disputes.
Example clauses
FAVORABLE
Preferred Term of Agreement
"The term of this Agreement shall commence on the Effective Date and shall continue for a period of one (1) year, unless earlier terminated in accordance with the provisions of this Agreement. The Agreement shall automatically renew for successive one (1) year periods unless either party provides written notice of non-renewal to the other party at least thirty (30) days prior to the expiration of the then-current term."
NEUTRAL
Termination for Convenience
"Either party may terminate this Agreement for convenience upon providing the other party with sixty (60) days' prior written notice."
UNFAVORABLE
Termination for Cause
"Either party may terminate this Agreement immediately upon written notice if the other party materially breaches any provision of this Agreement and fails to cure such breach within thirty (30) days after receiving written notice of the breach from the non-breaching party."
Fallbacks
High-Risk Projects
In high-risk projects, ensure termination clauses include detailed risk mitigation strategies and extended notice periods to manage potential fallout.
International Agreements
For international agreements, consider jurisdiction-specific termination requirements to ensure compliance and avoid legal challenges.
Long-Term Partnerships
In long-term partnerships, focus on renewal mechanics and mutual exit strategies to maintain a positive relationship.
FEATURED SOLUTIONS
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WEEK 1
CLM Readiness and Design
Our CX team works with you to understand your contracting challenges, prioritize key workflows, and identify the biggest impact areas. We build a tailored implementation plan that fits your needs.
WEEK 2
Install Module
We connect DocJuris to your contract repositories, set up admin and user accounts, and ensure your environment is ready for success.
WEEK 3
Deliver & Test
Your team builds initial playbooks, reviews existing clause libraries, and trains the DocJuris agent to align with your internal standards and negotiation positions.
WEEK 4
Launch
We support you in rolling out DocJuris to a pilot group or your full organization—with launch materials, training, and hands-on support to drive adoption from day one.
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