Published on : 25 Sep 2025, 10:39 am 4 min read
A termination clause is a standard clause in a commercial contract that may allow a party to exit without cause. A "determinable" contract, therefore, throws up the issue of whether a court can restrain termination of a contract via an injunction under Section 9 of the Arbitration and Conciliation Act, 1996, at the stage of pre-arbitration interim reliefs. The issue routinely arises in transactions for the sale/ purchase of property where a seller seeks to terminate the agreement for sale and the buyer applies to the court for specific performance and to prevent the seller from terminating the agreement. The seller usually invokes a defence under the laws of specific performance that specific performance cannot be granted for any agr