Termination clauses are specific provisions in contracts that outline the conditions under which the agreement can be ended by either party. These clauses help protect the interests of both parties by clearly stating the reasons for termination, such as breach of contract, failure to perform, or mutual consent. Having a termination clause in place provides a clear process for ending the contract, which can help prevent disputes. It typically includes details about notice periods and any obligations that must be fulfilled before termination, ensuring that both parties understand their rights and responsibilities under the agreement.