Termination for Cause Law & Legal Definition


Termination for cause refers to the expiration of a contract when one side failed to act up to the terms of the contract, and the other side is ending the relationship as a result. Termination for cause can result from work not being done or being done incorrectly.

In an employment agreement by its nature, termination for cause is intended to address only those serious acts or omissions committed by employee that adversely affect the company's business in a material respect. Termination by the company for all other reasons, other than by reason of employee's death or disability, shall be considered Termination without Cause. [Hafeman v. Protein Discovery, Inc., 2011 Tenn. App. LEXIS 92, 4-5 (Tenn. Ct. App. 2011)].