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What Is a Contract Termination?

A contract is a binding agreement between 2 parties that involves some sort of exchange or transaction. When the involved parties have fulfilled all their obligations or have no more desire to fulfill such terms and conditions, a contract termination is arranged. This is usually done when a contract is no longer needed.

A contract termination can be done in an amicable manner if all the involved parties mutually decide on ending their contract with one another. Such a form of contract termination involves merely filing the appropriate documentation with the proper authorities and ensuring that all the rights and terms of each party has been fully satisfied.

It is also possible that a contract may include a notification provision that allows any of the parties involved to cancel the contract upon fulfillment of certain terms and conditions. The provision provides the manner in which contract termination can be done. A stipulated time period of notification is detailed in the provision as well as other necessary conditions.

However, a contract termination may also arise from a breach of contract. If there arises a situation wherein one party does not fulfill the terms agreed to in the contract, the offended party may bring the case to court and file a lawsuit to claim damages or injuries suffered due to the breach of contract. Thus, a breach of contract occurs. Any violation or lack of fulfillment of the terms or conditions in a contract by any party is considered a breach of contract.

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