In the contract between Bayson's Department Store and Clem's Manufacturing, there is a clause that allows either party to end the contract on 60-days' notice and the payment of liquidated damages, which are set at a reasonable amount. This clause is
A) a force majeure clause.
B) an option to terminate.
C) a condition subsequent clause.
D) a frustration of contract clause.
E) an example of laches.

Question

Quizplus · Accepted Answer

An option to terminate clause in a contract allows either party to end the agreement under specific conditions, such as providing a notice within a certain period and paying liquidated damages, as described in the scenario.

In the Contract Between Bayson's Department Store and Clem's Manufacturing