I think sapco2's advice is spot on. Well done to you as well, for reading the contract. It is amazing how many people seem not to, and then complain endlessly for the consequences.
I am not sure it is a paradox, in that the company are probably protecting their position in the event that they feel obligated to be forced to terminate an employment . For example in the UK a major credit card provider has just terminated a lot of agreements (cards) for customers, many of whom have acted in perfectly good faith. In doing this (of course) they are not writing off the balance because the contract allows them to terminate the account under these terms.
Contracts are nearly always written to protect the seller and you must ensure you understand the agreement you are entering into and accept the terms stated in that agreement. Don't pay too much attention to the "its illegal" screamers, as a contract is a consent agreement between two or more parties, usually drawn up by a legal department.