I am a non-lawyer reading a relatively simple contract draft where everything else seems fine and dandy but the termination clause just says the following:
You agree that Company (A) retains the right to terminate this agreement at anytime.
Don't such unilateral termination clauses (sans notice) make a contract void and unenforceable? Just curious.
It's a low stakes contract (somewhat of a formality) so I don't care much either way, but just wanting to get my legal fundamentals right, now that I have a chance.
Edit: (a) Does a clause like this give party A any advantage over the other? As it stands, both parties are allowed to terminate so long as they communicate, right? And without mentioning notice periods or acceptable causes for termination what value does a clause like this add?
(b) More generally what is the utility of a termination clause when it does not add details about notice periods, or acceptable causes etc? A simple termination seems a recourse that is implicitly allowed, in any case, right? Whether I put such a termination clause or not? e.g.
"Both parties have a right to terminate this agreement at any time"
What's the utility of such a clause? Even if I didn't write this explicitly that's what will be the default position?