Termination options - example 1
Scenario
This example shows a contract without a predefined end date. The contract can be terminated once per year, provided that notice is given three months in advance by either the accepting party or the offering party.
The following settings are used:
Contract
Field | Field value |
|---|
Start date contract | January 1, 2025 |
Duration | Not specified |
Notice term | 3 months |
Proposed expiration date | Not specified |
Termination option
Field | Field value |
|---|
Description | Yearly termination |
Exercising possible by | Both |
Based on | End date |
Next possible end date | December 31, 2025 |
Notice term | 3 months |
Ultimate notification date | September 30, 2025 (calculated automatically) |
Recurrence - Interval | 1 year |
Status | Active |
Recalculating notice dates
A recurring termination option is used to keep the contract's Next notice date and Next end date up to date.
You can update these dates:
• Manually, by using Recalculate notice dates.
• Automatically, through an action definition in Alerts.
Updating these dates does not terminate the contract. Only the Next notice date and Next end date fields are updated.
Possible scenarios
• If the current Next notice date and Next end date have passed, Planon recalculates the next available dates.
• If the next recurring period has also passed, Planon recalculates the next recurring Next notice date and Next end date.
• If the current Next notice date and Next end date have not yet passed, the displayed dates remain unchanged.
Applying the termination option
You can terminate the contract by:
• setting the termination option status to Applied;
• setting the contract status to Terminated.
In both cases, Planon proposes an Actual end date based on the current Next end date. This date can be modified if required.
When a termination option is applied, the related contract lines are terminated as well.