(a) A party to a gestational surrogacy agreement may terminate such agreement, at any time before an embryo transfer, by giving notice of termination in a record to all other parties. If an embryo transfer shall not result in a pregnancy, a party may terminate such agreement at any time before a subsequent embryo transfer, provided no party may terminate the agreement after an embryo transfer but prior to a pregnancy test at a time to be determined by a qualified healthcare provider.

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(b) Unless a gestational surrogacy agreement provides otherwise, on termination of such agreement under subsection (a) of this section, the parties are released from the agreement, except that each intended parent remains responsible for expenses that are reimbursable under the agreement and incurred by the person acting as gestational surrogate through the date of termination of the agreement.

(c) Except in a case involving fraud, neither a person acting as gestational surrogate nor the spouse or former spouse of the person acting as surrogate, if any, is liable to the intended parent or parents for a penalty, including any costs incurred by intended parents, if any, for medical and psychological screening, or liquidated damages, for terminating a gestational surrogacy agreement under this section.