If we hear of the word contract termination agreement, we often think of something bad, like bad news, bad things, and bad luck. The word is popularly known for its unpopular reputation or its bad reputation, whether it be in the workplace and in business. Just the mention of it makes a lot of people cringe and dread for what is to come. When did we start fearing this word? It probably dates back to a long time ago. But is it right to fear this word just because of what it means? There are reasons why we fear the word termination and there are also instances where it is not that bad.
One of the many reasons why we fear termination is when we see an employee getting fired on some television series. This has left an impact and a lasting impression to us that the word became unpopular and demeaning. Termination is just a word that means something is going to end. It didn’t really say that it is something bad. Therefore, a termination is not always bad. If we look on the bright side, there are also a lot of good things that we can get from it, and that is what we are going to discuss here.
In this article we will talk about termination contracts, what it is, the many reasons why contracts get terminated, and the important things that you need to check before terminating a contract. Also included are the 10+ termination contract templates that you can use as reference when you go through the entire article, or if not, you can use it as your own if you plan to terminate your contract. These samples are made available in easy to download formats so that it would be easy for you to get hold of them. Check them out below!
Confidential Termination Contract
Simple Termination of Contract
Termination Contract of Employment
Notice of Termination Contract
Termination of Contract of Sale
What Is a Termination of Contract?
Contract is defined as a legal transaction between two or more parties about a particular thing. Every contract starts and ends in a given or specified period of time, which should be followed. In the event that the contract cannot be continued or finished on the specified end date, that is the time when it is terminated. A termination contract is a legal contract that terminates what is left to be performed in an actual contract. Instead of the contract getting finished on its stipulated end date, it will end earlier as agreed by the parties involved. This means that whatever is left to be performed in the contract and whatever obligations and responsibilities all parties have will be stopped, and they will be free from being bound to it.
When a contract gets terminated, it can both mean good and bad. It all depends on the situation and the reason why the contract is terminated. It doesn’t have to be always something bad. When resigning from one’s job to seek something better is a form of contract termination letter. You are ending or closing your relationship with the old one so that you can start one that is better. That is definitely something good. On the other hand, getting fired or terminated is bad news. This is primarily the reason why the word terminated is very unpopular.
Tenancy Termination Contract
Mutual Termination Contract
Legal Contract Termination
Lease Termination Agreement Contract
Termination Agreement Contract
What Are the Reasons for Terminating a Contract?
We tend to look for reasons as to why something is done or practiced. We do this for the sake of knowing and some just want to be cautious about it. This is so that they can avoid any possibilities of getting terminated. There are certain basis and laws that govern termination legal contracts. It is not done just because they want to and just because the parties agree to have it terminated. Listed below are the reasons for terminating a contract.
Impossibility of Performance
When a contract is about something that cannot be done or it is impossible to have it done, then that is a reason to have it legally terminated. One of the essential elements of a valid contract is about the possibility of it being performed and this includes being performed legally. Say for example, the contract is about building a two-story house in two days. Although building a house is something that can be done, having it done in two days is impossible, even if it is being worked on day and night. Another is selling human organs for transplant. This type of trade is being done underground; as it is an illegal act, it cannot be permitted.
Breach of Contract
A breach of contract takes place when any of the parties involved in a contract violates the contract’s terms and conditions, either intentionally or unintentionally. It may or may not be remedied and that largely depends on how the parties would react to the breach. The contract may also end up getting terminated due to the breach, with the breaching party facing legal or consequences or having to pay for compensation.
Instances of Mistake, Fraud, or Misrepresentation
A contract should be written and explained clearly and concisely. It should not have any mistakes and should only include the truth. If in any case there are errors in a contract, if the facts are misrepresented or if it was done through fraud, once it is proven, then legal contract would be terminated. It also cannot be considered as a valid contract as it is essential that the contract be done according to the law and not against the law. Clearly, fraud and misrepresentation are against the law.
According to a Prior Agreement
There are a number of clauses that are being used in contracts. One of them is the termination clause. If this clause is included in the contract and all of the parties involved agree to it, then the termination of the contract can be done legally.
Termination of Lease Obligation Contract
Termination Management Contract
Employment Termination Contract
General Partnership Termination Contract
Sale and Purchase Termination Contract
The Things You Need to Consider before Terminating a Contract
If there are things that you need to know before signing a contract, there are also important things that you need to consider before terminating a contract. You wouldn’t need to consider them if they are not needed. Terminating a business contract is just as crucial as getting involved in one. To tell you about what they are, we have made a list of them below.
- You need to make sure that all the parties involved in the transaction where the contact will be issued are aware of the document contract termination. It is of utmost importance that all parties can identify the particulars of the termination, especially those issues that concern them and/or their actions.
- Specify the date that the termination of the contract is deemed to be effective. The date of the contract termination depends on the agreement of the parties. It is essential that once the reason for termination has been proved to be evident and real that the decision should be finalized and executed.
- There should be clarity with the reason for the termination since the contract is a legally binding agreement you need to make sure that even the term of what has been agreed upon and talk about will still follow due process.
- There should be a proper time allotment to be given so that the parties concerned with the termination will have the time to provide their reactions, thoughts, and counter statement samples for the decision of termination. This can make sure that the rights and interests of all parties are still protected and considered.
- Be particular with the kind of termination that will occur. There are certain kinds of transaction where only a part, a clause, or an area of the contract is terminated and some of the agreements can still push through up to the validity date of the contract and the transaction.
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