What Is A Cause Agreement

Posted Oktober 14th, 2021 by admin

Whenever a definition of „for reasons“ includes something that you could correct, there should be a „notice and remedy“ provision. Given these unpleasant options, some board members may decide to retain a manager until the end of the contract term, although this can be detrimental to the club, as the organization cannot afford to pay both the severance pay and the successor`s salary. Other boards negotiate a compromise severance pay to avoid a legal dispute or a public dispute. The Executive`s failure to make an implied termination without cause with respect to any event described in this Agreement shall not affect its right to perform a constructive termination without cause with respect to any other such event. On the other hand, a wider range of circumstances could fall under the term termination for cause if you apply it to other types of contracts. Inaccurate factual allegations. Nonpayment. Other obligations breached. Occurrence of bankruptcy. Non-performance due to force majeure will continue beyond a specified period of time.

And so on. Due to this diversity, the consequences of termination may vary depending on the reason for termination. Covering everything with termination language wouldn`t work. „Constructive termination without cause“ means the termination of the Executive`s employment relationship at its initiative, as provided for in this Agreement, after one or more of the following events have occurred without the prior written consent of the Manager (except in the context of a termination of the Executive`s employment relationship due to death, a disability, change of control or cause): Failure to meet performance standards or targets shall not constitute a „reason“ under this Agreement […].

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