Glossary · People and paperwork
In short
A provision in a contract that outlines the conditions under which the agreement can be ended by one or both parties. This protects you by specifying scenarios where you can walk away from a deal.
Your Letter of Intent (LOI) and purchase agreement will contain termination clauses. These typically cover breaches of contract, failure to meet due diligence contingencies, or inability to secure financing. Understand your rights and obligations to terminate to avoid penalties or being forced into a bad deal.
Defined by DealRoom.so SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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