California IDEX Practice Exam

Under the ASID commercial agreement between designer and client, the client may terminate the agreement under all of the following circumstances EXCEPT which?

1. The designer defaults and the client notifies the designer in writing

2. The designer does not cure a default in contract performance within a specified time limit

3. Without cause and with written notice

4. Break of contract with written notice

The correct answer is: Without cause and with written notice

The correct answer is that the client may not terminate the agreement "without cause and with written notice." In a commercial agreement, especially one governed by standards such as ASID, termination typically requires a valid reason that is defined in the contract. This might include defaults or failures in performance by the designer, which must be communicated formally. The options that reference specific situations—such as defaults by the designer or failures to remedy those defaults within a specified timeframe—are standard grounds for termination due to the designer’s failure to meet contractual obligations. The inclusion of "without cause" suggests that a client could terminate the agreement arbitrarily, which generally contradicts the legal and professional standards typically upheld in such agreements. These standards often aim to protect both parties and ensure that contracts are upheld unless there is a substantive reason for termination.