FREE 10+ Mutual Termination of Contract Samples in MS Word | Google Docs | Apple Pages | PDF

In some cases, parties may want to terminate their contract so whatever reason this may be, it must be done legally and more importantly–mutually. It would be rather difficult if one party would not give their consent for that matter because one of the main purposes of a contract is that this is a shared agreement therefore whatever changes, modifications, cancellation, or in this case termination must be agreed upon by both parties involved. Now if a decision to terminate a contract is inevitable, then a mutual termination of contract must be drafted by both parties. To learn more about this particular document, let us discuss this further below. And if you need to create a termination contract, then we’ve got you covered with our free mutual termination of contract samples that are available for download on this page.

10+ Mutual Termination of Contract Samples

1. Mutual Termination of Contract Template

2. Mutual Termination Release of Contract

3. Mutual Termination of Project Contract

4. Mutual Termination of Employment Contract

5. Mutual Termination of Agreement Contract

6. Mutual Termination of Separation Contract

7. Mutual Termination of Lease Contract

8. Mutual Termination of Player Contract

9. Sample Mutual Termination of Contract

10. Standard Mutual Termination of Contract

11. Mutual Termination of Listing Contract

What Is a Mutual Termination of Contract?

It is nothing new when either of the parties decided to terminate their contract. Before you can determine if you can initiate a contract termination for cause, you must determine that you have a legal contract on hand. Two elements must exist for a contract to be legally valid: mutual assent, which means an offer has been made and accepted, and consideration, which means something of value has been exchanged. Now a mutual termination of the contract would take place for the following reasons, perhaps the contract could no longer be performed, the parties involved ceased operating the business, or due to fraud. Once all these occur, the parties could opt to mutually terminate the contract through an agreement in writing.

How To Create a Mutual Termination of Contract?

When a contract is mutually terminated, not only does it give both parties peace of mind but no adverse or negative consequences are involved unless the contract affects other contracts. And the contract is no longer enforceable once it is terminated. Also, remember if the other party is unwilling to yield then you have determined he or she has violated a portion of the contract so you may have grounds to terminate the contract for cause. To create a mutual termination of contract, you must also consider that each state or country has its own rules and regulations regarding the terms of contracts, so it is vital for you to seek proper counsel but the following below are the basic elements that will help you prepare this type of contract.

I. Termination Clause

Most contracts have a termination clause in case something would happen in which the contract could no longer be continued. Parties should always anticipate such circumstances, thus a termination clause. Now some contracts or agreements may contain provisions that would terminate automatically after a fixed term or event, and some can be rescinded without the consent of another party. If your agreement is set to terminate in the near future, you might simply allow the contract to lapse. If your contract has a favorable rescission clause, termination may not be necessary.

II. Notice Provision

Also, go over the contract to check if there is a notice provision in writing. This is an agreement between parties on how to receive notices about contractual matters, and this clause should be very clear on its requirements. To address the other party, you should comply with all terms of your notice provision.

III. Mutual Termination of Contract Letter

You should be able to draft a letter stating that you should want to terminate the contract. This is a letter sent by one party of a contract to another to acknowledge the mutual termination of a contract. It should contain the reasons why termination is the best course of action for both parties. Remember to request a response to the letter.

IV. Notice Clause

Mail the letter to the other party to be in compliance with the notice clause in your agreement.

FAQs

To make it easier for you to prepare a mutual termination of contract, don’t forget to download our free templates above!