To terminate a contract means to end the contract prior to it being fully performed by the parties. In other words prior to the parties performing all of their respective obligations required by the contract, their duty to perform these obligations ceases to exist.
What is terminating a contract?
Strictly speaking, "termination" means that the contract is "discharged". In other words, the future, unaccrued obligations owed by the parties fall away. The contract does not actually cease to exist.
How do you terminate a contract?
How to Terminate a Contract Legally
- Use a termination clause. If your contract has a termination clause, you can follow the steps stipulated in it to release yourself from the contract. ...
- Claim the contract is impossible. ...
- Claim frustration of purpose. ...
- Identify a breach of contract. ...
- Negotiate termination.
