termination of contract

Termination of a contract takes pace when the parties to the contract are released from their contractual obligations. Contract termination may take in a number of ways, which include by breach, by agreement, and by performance.

A breach of contract takes place when a party fails to deliver on their contractual promises by failing to perform their obligations completely. Contracts may be terminated by agreement where the contract itself provides for the event bringing it to an end.

Usage: The contract was terminated by agreement.

Related Words: agreement; contract.