90 Day Contract termination Clause
Having a 90 day contract termination clause is an important component of any contract that can often be missed.3 min read
2. Employment Law: 90 Day Trials & Termination
Updated November 3, 2020:
Having a 90-day contract termination clause is an important component of any contract that can often be missed. In the event you have a property manager or property management company that is not meeting your needs, or an employee not performing after a probationary period, the 90-day contract termination clause gives you the ability to end the relationship and move on. It is vital that you end the relationship based on the terms of your agreement so that you will not face possible repercussions for breach of contract.
Steps to Evoking a Termination Clause
When deciding to end a contractual relationship by evoking the termination clause, there are multiple steps you will need to follow. You need to make sure to:
- Give appropriate notice: Your contract will most likely require you to provide 30 to 90 days notice to be able to terminate the contract. If you do not request termination within the given timeframe, there is a chance you can be charged with a breach of contract.
- Make sure the notification is in writing: Whenever you terminate a contract, your intent to terminate should be given in writing. You should also send the notice by means of certified mail to ensure that it is received by the party and to have proof it was delivered in the appropriate time frame.
- Do not terminate if the contract requires cause that you do not have: Some agreements may require that the termination be for cause, which are specific reasons that are spelled out in the agreement. In the event you try to terminate one of these agreements without cause, the request could be ignored, or worse you could be held in breach of contract.
- Understand all costs of termination: Some contracts will require fees for terminating the contract early, even if the proper notice is given. Make sure you understand the fees that will be involved in the event you try to get out of the contract before its completion date.
- Inform tenants of management changes: Most likely your contract with tenants requires that you inform them of any management changes. This information should be given to the tenants in writing so they are aware of the new manager.
- Terminate the contract if the manager has breached it: If the manager has violated any terms of the contract, it can be in your best interest to terminate it since it will be unlikely you will feel secure again allowing them to run the property.
- Give a reasonable amount of time for the funds to be paid to you: It is important to remember that the property manager will need to make sure that all expenses are paid before they can determine the amount owed to you, so it is best to give them some time to get together the final amount due.
- Obtain copies of all paperwork: You will need to make sure you have possession of copies of all the important documentation such as leases, deposit information, income, and expenses.
Employment Law: 90 Day Trials & Termination
An employee can agree to a 90 day trial employment period if it is presented in writing and on the first day that they begin working. For a 90 day trial to be legally binding, it must follow the provisions set forth in the ERA. During this 90 day period, an employer must provide the employee with training and basic support to complete the duties of their job.
If the employer decides to terminate after this period, they must provide a notice to the employee that the work they did was considered unsatisfactory. The employer must have a reason for termination, or the action can be considered an arbitrary termination or termination without cause. If this is the case, then the termination would not be protected under the rules of the 90 day trial clause.
For the trial to not be void, the employer must have attempted to provide the employee with the tools to provide satisfactory work and made suggestions to improve the areas they were dissatisfied with. This can be recorded in monthly expectations and deficiencies that the employee is made aware of.
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