This clause controls whether either party can announce the contract termination publicly (in press releases, on websites, social media, or to the news media) and what they can say about it. It matters because public announcements shape how customers, investors, employees, and competitors perceive your business—a badly-worded disclosure can tank your stock price, scare away customers, or trigger legal disputes. For example, if a tech company terminates a partnership and one side announces "we ended this relationship because the vendor failed to deliver," the vendor's reputation is damaged even if the statement is technically true. Under UK and US law, you can be sued for defamation if a public statement is false and harmful, so controlling disclosure reduces legal risk.
Push for a "mutual approval" clause that says neither party can make any public statement without the other party's written consent, or agree on a joint press release that both sides approve in advance. If you must disclose (for example, because you're a public company required to tell shareholders), limit it to factual statements like "the contract ended on [date]" and avoid explanations, blame, or commentary. Consider adding a clause that says "any public statement must be approved by both parties' legal teams" to prevent accidental damage. ---
Frequently Asked Questions
What does this clause mean in simple terms?
This clause controls whether either party can announce the contract termination publicly (in press releases, on websites, social media, or to the news media) and what they can say about it.
Why should I care about this clause?
It matters because public announcements shape how customers, investors, employees, and competitors perceive your business—a badly-worded disclosure can tank your stock price, scare away customers, or trigger legal disputes.
What are my options?
For example, if a tech company terminates a partnership and one side announces "we ended this relationship because the vendor failed to deliver," the vendor's reputation is damaged even if the statement is technically true.
How does this affect small businesses?
Under UK and US law, you can be sued for defamation if a public statement is false and harmful, so controlling disclosure reduces legal risk.