Death clause: Copy, customize, and use instantly
Introduction
A death clause specifies the rights and responsibilities of the parties involved in a contract if one of the parties dies during the term of the agreement. It outlines the procedures for the continuation or termination of the contract, providing clarity to prevent disputes in such events. This clause is particularly important in agreements involving personal services or partnerships where the death of a party may have a significant impact.
Below are templates for death clauses tailored to different scenarios. Copy, customize, and insert them into your agreement.
Death clause (individual contract)
This variation is used when an agreement is with an individual, and it specifies how the contract will be handled in the event of their death.
In the event of the death of [Party Name], this Agreement shall automatically terminate, and neither party shall have any further obligations under this Agreement, except for payment of any amounts owed up until the date of death.
Death clause (business partnership)
This variation applies to partnerships, addressing how the partnership will continue or dissolve upon the death of one of the partners.
If a partner in the partnership dies, the surviving partner(s) may choose to either dissolve the partnership or continue operations, subject to the terms of the partnership agreement and any required notice to the deceased partner's estate.
Death clause (key employee)
This variation is used in situations where an agreement relies on a key employee, and specifies how the agreement is to be handled if the employee passes away.
Should [Employee Name], a key employee of the Company, pass away, the Company reserves the right to terminate this Agreement immediately or appoint a successor upon mutual agreement of both parties.
Death clause (life insurance provision)
This variation includes a life insurance provision, specifying the use of proceeds from a life insurance policy in the event of a party’s death.
In the event of the death of [Party Name], the [insurance proceeds or life insurance policy] shall be payable to [designated beneficiary or estate], and the surviving party will have the option to continue the agreement or terminate it as outlined herein.
Death clause (termination or succession)
This variation provides options for termination or succession, allowing the parties to choose how the contract will be handled following the death of one of them.
Upon the death of [Party Name], this Agreement shall either be terminated or continue with a successor, as mutually agreed upon by the surviving party and the deceased party’s estate or representative.
Death clause (individual contract)
This variation is used when an agreement is with an individual, and it specifies how the contract will be handled in the event of their death.
In the event of the death of [Party Name], this Agreement shall automatically terminate, and neither party shall have any further obligations under this Agreement, except for payment of any amounts owed up until the date of death.
Death clause (business partnership)
This variation applies to partnerships, addressing how the partnership will continue or dissolve upon the death of one of the partners.
If a partner in the partnership dies, the surviving partner(s) may choose to either dissolve the partnership or continue operations, subject to the terms of the partnership agreement and any required notice to the deceased partner's estate.
Death clause (key employee)
This variation is used when an agreement relies on a key employee, and specifies how the agreement is to be handled if the employee passes away.
Should [Employee Name], a key employee of the Company, pass away, the Company reserves the right to terminate this Agreement immediately or appoint a successor upon mutual agreement of both parties.
Death clause (life insurance provision)
This variation includes a life insurance provision, specifying the use of proceeds from a life insurance policy in the event of a party’s death.
In the event of the death of [Party Name], the [insurance proceeds or life insurance policy] shall be payable to [designated beneficiary or estate], and the surviving party will have the option to continue the agreement or terminate it as outlined herein.
Death clause (termination or succession)
This variation provides options for termination or succession, allowing the parties to choose how the contract will be handled following the death of one of them.
Upon the death of [Party Name], this Agreement shall either be terminated or continue with a successor, as mutually agreed upon by the surviving party and the deceased party’s estate or representative.
Death clause (automated termination)
This variation automatically terminates the contract upon the death of a party, preventing any ambiguity or continuation after death.
In the event of the death of [Party Name], this Agreement shall automatically terminate on the date of death, with no further obligation by either party except for accrued payments up to the date of death.
Death clause (right to terminate)
This variation grants the surviving party the right to terminate the agreement upon the death of the other party.
If [Party Name] dies during the term of this Agreement, the surviving party shall have the right, but not the obligation, to terminate the Agreement by providing written notice to the deceased party’s estate within [X] days.
Death clause (death during performance)
This variation is used when the contract is in progress, specifying how the agreement should be handled if one party dies before completing their obligations.
If [Party Name] dies before completing the obligations specified in this Agreement, the surviving party may, at their discretion, elect to terminate the Agreement or continue performing the obligations through a mutually agreed substitute.
Death clause (financial obligations on death)
This variation ensures that any financial obligations are settled immediately upon death and outlines the continuation or termination of the agreement.
Upon the death of [Party Name], all financial obligations, including any outstanding payments, will be due immediately, and the Agreement shall either be terminated or continue, as determined by the surviving party or the deceased’s estate.
Death clause (automatic substitution)
This variation automatically substitutes a successor in the event of a party’s death, ensuring continuity in the agreement.
In the event of the death of [Party Name], [Designated Successor Name] shall automatically assume all rights and obligations of the deceased party under this Agreement, unless otherwise specified by the surviving party.
Death clause (discretionary continuation)
This variation gives the surviving party discretion on whether to continue or terminate the agreement after the death of the other party.
Upon the death of [Party Name], the surviving party has the discretion to either continue the Agreement with the deceased party's estate or terminate the Agreement with no further obligation.
Death clause (joint contract)
This variation applies when two or more parties enter into a joint contract and specifies how the death of one party impacts the agreement.
If one of the parties in this joint Agreement dies, the surviving party may choose to either perform the remaining obligations alone or terminate the contract. If the contract is terminated, any payments due up to the date of death shall still be paid.
Death clause (sole proprietor)
This variation is used in agreements where a sole proprietor is one of the parties, automatically terminating the contract upon their death.
If [Party Name], the sole proprietor, passes away, this Agreement shall be automatically terminated unless a legal successor is appointed and agrees to assume all obligations under the contract.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.