This clause lets one party end only part of the contract while keeping the rest alive. For example, if you have a 5-year supply agreement covering 10 different products, partial termination means they could drop 6 products but keep buying the other 4. This is low-risk because it's actually quite reasonable—it prevents someone from being forced to stay in a contract that no longer works for them. Courts in both UK and US law generally allow parties to terminate parts of contracts as long as the remaining parts still make sense and don't unfairly harm the other side.
This is usually safe to accept, but add a condition: if they terminate part of the contract, the price or other terms for the remaining part can be renegotiated if it's no longer economically viable for you. Also specify that they can't cherry-pick which parts to keep in a way that leaves you with only the unprofitable portions. ---
Frequently Asked Questions
What does this clause mean in simple terms?
This clause lets one party end only part of the contract while keeping the rest alive.
Why should I care about this clause?
For example, if you have a 5-year supply agreement covering 10 different products, partial termination means they could drop 6 products but keep buying the other 4.
What are my options?
This is low-risk because it's actually quite reasonable—it prevents someone from being forced to stay in a contract that no longer works for them.
How does this affect small businesses?
Courts in both UK and US law generally allow parties to terminate parts of contracts as long as the remaining parts still make sense and don't unfairly harm the other side.