How can contracts be terminated?

Contracts can be terminated through various means, and one of the primary methods is through performance or breach. When a contract is performed as agreed, it naturally comes to an end when both parties fulfill their obligations. On the other hand, a breach of contract occurs when one party fails to perform their duties as stipulated in the agreement. This breach can be material, allowing the non-breaching party to terminate the contract and seek remedies for the damages caused.

The concept of termination through performance or breach is essential to understanding contract law. It recognizes that contracts exist as ongoing relationships between parties, and that completion of the agreed tasks or failure to adhere to the terms can lead to the conclusion of that relationship.

While mutual consent and legal action can also play roles in terminating a contract, the specific mention of performance or breach encompasses a broader spectrum of scenarios. Moreover, expiration is a typical form of termination in its own right, usually outlined in the contract's terms, rather than being categorized as an excluded method. Therefore, understanding that contracts can end through both successful completion and failure to adhere to terms is foundational in commercial contracting practices.