The MSA should provide for a clear end to the project and, if there are ongoing commitments, such as guarantees, it goes without saying that these must be clearly defined. But one of the most common situations is early termination if one of the parties has not made or is not complying with regular payments. It is not uncommon for the parties to find themselves in litigation because they did not act within the terms of the early resolution of the conflict in the agreement. Unfortunately, many MSAs are formulated in such a way that termination is the only alternative. This often results in a situation in which one party owes a considerable amount of money and the other has a partially completed project, worthless in its unfinished state. Tensions between the parties will escalate when significant funds have already been spent. All too often, animosities between the two parties at this stage of the dispute make it impossible to conclude the project. Master service agreements are usually complex agreements. If no particular contract is discussed, companies will not have to deal with time constraints. This allows them to discover and solve potential problems. In some cases, a service provider will authorize a termination for convenience by a service provider, provided that all lost costs can be recovered. In other cases, the MSA, by its very nature, is effectively conceived as a temporary obligation of the client, and termination is only possible by termination on the basis of the provision.
This framework is much more common in agreements in which the service provider itself must set up and obtain services from third parties to meet its obligations. Whether or not termination is an option for convenience, termination clauses generally relate to the effects of termination, the remaining conditions and the obligations of the parties to terminate, such as the obligation to continue to provide transitional services and the obligations of the parties to return and/or destroy the confidential information of the other party in its possession or control.