Onerous Contract Termination Penalty Assessment Form
Assess whether a contract termination penalty is considered onerous and identify supporting factors.
Contract Name or Reference
*
Is the termination penalty in this contract considered onerous?
*
Yes
No
Uncertain
Please rate the following factors influencing your assessment:
*
Rows
Not at all
Slightly
Moderately
Significantly
Extremely
Penalty is disproportionate to the breach
1
2
3
4
5
Penalty lacks clear justification
6
7
8
9
10
Penalty exceeds actual damages
11
12
13
14
15
Penalty restricts fair termination
16
17
18
19
20
Penalty has significant financial impact
21
22
23
24
25
How would you rate the overall fairness of the termination penalty?
*
Very Fair
1
2
3
4
Very Unfair
5
1 is Very Fair, 5 is Very Unfair
Are there alternative remedies available in the contract?
Yes
No
Not specified
Does the penalty serve a legitimate business interest?
Yes
No
Unclear
Does the penalty deter reasonable termination by the contracting party?
Yes
No
Uncertain
Please provide any additional comments or supporting information for your assessment.
Submit Assessment
Should be Empty: