David,a manufacturer's agent,is under contract to represent Joseph Tool Co.in western Canada.This contract contains "an option to terminate" clause.What is the likely meaning of this clause?
A)With notice,only David can opt out of this contract.
B)This clause stipulates when performance has been completed.
C)This clause amounts to discharge by accord and satisfaction.
D)With notice,only Joseph Tool Co.can opt out of this contract.
E)With notice,either or both companies can opt out of this contract.

Question

Quizplus · Accepted Answer

An "option to terminate" clause in a contract typically allows either party involved in the contract to end the agreement under certain conditions, which usually include providing notice to the other party. This means that both David and Joseph Tool Co. would have the ability to opt out of the contract if they choose to, assuming they follow whatever procedures are outlined in the clause for doing so.

David,a Manufacturer's Agent,is Under Contract to Represent Joseph Tool Co