{"ok":true,"canonical_url":"https://dealroom.so/glossary/without-cause","api_url":"https://dealroom.so/api/public/glossary/without-cause","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"without-cause","term":"Without Cause","group":"Doing the deal","definition":"\"Without cause\" refers to termination of an agreement or employment for any reason, provided it's not for a specific breach or wrongdoing. This clause gives flexibility but also carries a cost, like severance.","what_it_means":"In an acquisition, this often appears in employment agreements, particularly for the seller or key employees you retain. If you need to terminate a seller's consulting agreement \"without cause\" post-closing, you'll typically owe them a severance payment or a specific portion of their remaining compensation. Understand these termination costs when negotiating any post-closing employment or consulting agreements.","url":"https://dealroom.so/glossary/without-cause","official_sources":[],"related":[{"slug":"key-principal","term":"Key principal","url":"https://dealroom.so/glossary/key-principal"},{"slug":"non-compete","term":"Non-compete","url":"https://dealroom.so/glossary/non-compete"},{"slug":"seller-note","term":"Seller note","url":"https://dealroom.so/glossary/seller-note"},{"slug":"employment-agreement","term":"Employment agreement","url":"https://dealroom.so/glossary/employment-agreement"}],"related_questions":[{"question":"What factors could cause my SBA 7(a) loan application to be declined?","url":"https://dealroom.so/sba-7a/questions/what-factors-could-cause-my-sba-7-a-loan-application-to-be-declined"},{"question":"What common issues can cause an SBA 7(a) loan application to be denied?","url":"https://dealroom.so/sba-7a/questions/what-common-issues-can-cause-an-sba-7-a-loan-application-to-be-denied"},{"question":"What factors can cause delays in the SBA 7(a) loan application and approval process?","url":"https://dealroom.so/sba-loans/basics/what-factors-can-cause-delays-in-the-sba-7-a-loan-application-and-approval-process"},{"question":"Can unverified or inconsistent financial statements from the seller cause my SBA loan to be denied?","url":"https://dealroom.so/sba-7a/questions/can-unverified-or-inconsistent-financial-statements-from-the-seller-cause-my-sba-loan-to-b"},{"question":"What constitutes a 'serious criminal offense' that may cause 7(a) loan ineligibility for a principal?","url":"https://dealroom.so/for-lenders/questions/what-constitutes-a-serious-criminal-offense-that-may-cause-7-a-loan-ineligibility-for-a-pr"},{"question":"What factors most commonly cause delays in the SBA 7(a) loan approval process for an acquisition?","url":"https://dealroom.so/sba-7a/questions/what-factors-most-commonly-cause-delays-in-the-sba-7-a-loan-approval-process-for-an-acquis"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Without Cause","url":"https://dealroom.so/glossary/without-cause","source_type":"DealRoom Data"}}