General legal information about contract terms in the UK, not legal advice.
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Insolvency event

An insolvency event clause lists the circumstances — administration, liquidation, a winding-up order, bankruptcy — that allow the other party to terminate.

Prepared by a retired English qualified solicitor (LLB, LLM) · reviewed · applies across the UK unless stated · how we draft

In more detail

Some termination rights triggered by insolvency are restricted by the Corporate Insolvency and Governance Act 2020, which protects supplies to companies in insolvency procedures.

In Scotland

In Scotland, the personal equivalent of bankruptcy is sequestration.

Put it into a contract

Be Contract Wise provides very powerful, carefully prepared tools to draft and review simple or complex contracts under the law of England and Wales or Scots law, explaining every clause in plain English.

England & Wales appScotland app

Reviewed 2026-09-24. General legal information, not legal advice.