Dear Forms Committee: Why doesn’t the Termination Agreement list the reason for termination?
OREF 057—Termination Agreement was created to allow the parties to agree to terminate a transaction and identify how earnest money should be distributed. This one-page form should be provided to escrow to allow them to process the termination as agreed by the parties.
There is usually no requirement to communicate more about the reason for termination than what the pre-printed forms already say. Explaining the reason in greater detail can cause more harm than good. For example, if the explanation fits the definition of confidential information in ORS 696.800(3), you cannot disclose it without your client’s permission. The explanation could also lead to a dispute, such as whether the party has a right to terminate, whether there is a material defect, or whether the party is being reasonable. The safest way to terminate is to check the appropriate boxes on the appropriate forms and leave it at that.
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