What is Contract Termination?

Contract termination means ending a contract for specific reasons. These reasons
could be mutually agreed on or could be because both parties had fulfilled their
contractual obligations. However, there are other causes that can also lead to contract
termination.

What are the Grounds for Contract Termination?

1. Performance
A contract is ended when two parties had already done their contractual obligations.
Completing their tasks or performance marks the end of their agreement. They will
no longer be bound legally as they are already finished with their work.

2. Mutual Agreement
The contract can end if both parties mutually agreed to end their contractual
obligations. They are allowed to be free from their tasks without completing or
fulfilling them. One party may also be allowed to be released by the other party to
complete even if they had not fulfilled nor completed their obligation.

3, Frustration
The contract can be ended with frustration if there are unforeseeable events that
suddenly arise along the way. This frustration must be proven and must not be caused
by either party. They should also make sure that this event was unforeseeable

4. Contract Breach
Of course, a contract can end if one party breaches the contract. A breach means one
party failed to perform his/her contractual obligation. Given that the task that was
supposed to be performed is something major or essential for the project, the non-
breaching party may consider to end the contract or perhaps just settle the situation
with the other party.