This clause controls who tells your customers that the contract is ending and what message gets sent. It matters because poor communication can damage business relationships, cause customers to leave, or create legal liability if false information is shared. For example, if a software company terminates a service agreement, this clause might say "the original vendor must notify all customers within 5 days" or "the new vendor controls all messaging." Under UK and US contract law, whoever controls the message can shape how customers perceive the change, which directly affects business value. If the other party controls messaging and says something damaging (like "we're leaving because this vendor is unreliable"), you lose control of your reputation.
Insist on approval rights—require that any customer communication be reviewed and approved by both parties before sending. Specify exactly what information must be shared (contract end date, transition plan, new contact details) and what cannot be said (no blame, no negative comments about either party). If the other party will handle communication, get a copy of the draft message in writing at least 10 days before it goes out, so you have time to object. ---
Frequently Asked Questions
What does this clause mean in simple terms?
This clause controls who tells your customers that the contract is ending and what message gets sent.
Why should I care about this clause?
It matters because poor communication can damage business relationships, cause customers to leave, or create legal liability if false information is shared.
What are my options?
For example, if a software company terminates a service agreement, this clause might say "the original vendor must notify all customers within 5 days" or "the new vendor controls all messaging." Under UK and US contract law, whoever controls the message can shape how customers perceive the change, which directly affects business value.
How does this affect small businesses?
If the other party controls messaging and says something damaging (like "we're leaving because this vendor is unreliable"), you lose control of your reputation.