No matter what type of business you run, you will likely enter into several contracts. These contracts are very serious documents and should be looked over meticulously before you sign them. If you don’t look over your contracts thoroughly with a business lawyer, you may be more likely to terminate them in the future.
Here are some common reasons to terminate a contract.
Unfortunately, fraud is one of the most common reasons business contracts are terminated. If your company signs a contract with a vendor or client and they commit fraud, you have a good reason to terminate the contract. For example, if you have a coffee supplier that sent you packages of coffee for your office, but you found out the the packages were empty, it constitutes as fraud.
If the other party doesn’t perform certain duties that are specified in the contract, it’s considered breach and you have a viable reason to end the contract. For example, if you hire a web design company to build a website for your coffee shop, and end up with a website that doesn’t even mention your company, it’s considered a breach of contract.
It’s also possible for a contract to get terminated if you and the other party are mistaken about certain facts in the contract. This type of mistake happens when both parties sign a contract under a mistaken belief. However, in order to terminate the contract, the mistake has to violate the terms of the contract and have a big effect on the performance of the contract.
Impossible to Perform
If something happens that makes it impossible to perform what’s listed in the contract, it’s called an impossibility to perform. For example, if you hire a painter to paint your portrait, but the painter gets into an accident and becomes disabled, obviously he or she can’t perform the job anymore. This would make it possible to terminate the contract without any legal repercussions.
If there’s a prior agreement in place, a contract can also be terminated. The contract must say that it can be terminated by either party giving written notice to the other party.
Hiring a Lawyer
If you’re considering terminating a contract, it’s in your best interest to consult with an experienced business lawyer. He or she can assess your situation and guide you through the termination of a contract. Your lawyer will help you resolve any disputes and make sure that your rights are protected.
A skilled lawyer understands how stressful it can be to terminate a contract. We’re here to help you through the process. Contact us today for a free consultation.
Contact a business attorney in Charlottesville, VA, for more information.
Call Dale Jensen, PLC for their insight into business law.