Contracts may be terminated in a number of defined circumstances. First, the parties may have fulfilled their contractual obligations to each other and the contract is terminated by performance. Second, the parties may agree to terminate the contract by mutual agreement. In rare circumstances, the contract may be terminated by frustration, where one party cannot fulfil their obligations due to circumstances that could not reasonably have been foreseen and incorporated into the contract. Finally, contracts may be terminated if there is a breach of a fundamental condition of the contract. See also Contract.
Contract Law Essentials training is available at Academy of Procurement.
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