This clause determines who can announce the contract's termination to the public, media, or business partners. It matters because an uncontrolled announcement can damage your reputation, scare away customers, or trigger panic in your industry. For example, if a software vendor announces you've terminated their contract without your permission, clients might assume your service is failing. In UK and US law, you generally have the right to control your own public statements, but contracts can override this by giving the other party announcement rights. A "high risk" rating means this clause could seriously harm your business if written in the other party's favor.
Push back hard on this clause—try to require mutual written approval before any public announcement, or at minimum give yourself the right to issue a joint statement. If you must allow them to announce, insist on a 5-10 day notice period so you can prepare your own messaging and warn key customers first. Never accept language that lets them announce unilaterally or immediately. ---
Frequently Asked Questions
What does this clause mean in simple terms?
This clause determines who can announce the contract's termination to the public, media, or business partners.
Why should I care about this clause?
It matters because an uncontrolled announcement can damage your reputation, scare away customers, or trigger panic in your industry.
What are my options?
For example, if a software vendor announces you've terminated their contract without your permission, clients might assume your service is failing.
How does this affect small businesses?
In UK and US law, you generally have the right to control your own public statements, but contracts can override this by giving the other party announcement rights.