David, a manufacturer's agent, is under contract to represent Joseph Tool Co. in Western Canada. This contract contains "an option to terminate" clause. What is the likely meaning of this clause?
A) With notice, only David can opt out of this contract.
B) This clause stipulates when performance has been completed.
C) With notice, only Joseph Tool Co. can opt out of this contract.
D) With notice, either or both companies can opt out of this contract.
E) This clause amounts to discharge by accord and satisfaction.

Question

Quizplus · Accepted Answer

The "option to terminate" clause typically allows either party to end the contract with notice, providing flexibility for both parties to exit the agreement if needed.

David, a Manufacturer's Agent, Is Under Contract to Represent Joseph