Contract Termination

Question 1

What are the reasons for which a contract can be terminated?

Answer 1

-> Breach of Contract
-> Mutual Agreement
-> Impossibility
-> Illegality
-> Termination clause

Acronym BMI IT

Question 2

Explain the point on Breach of Contract

Answer 2

If one or both parties breach the contract, then the contract can be annulled this can happen for 3 main reasons: non-performance, incomplete performance or deviation from the terms laid out in the contract

Question 3

Explain the point on Mutual Agreement

Answer 3

Contracts can be annulled if both parties agree to it. This could be because of a change of circumstances, change of priority or the contract could no longer be beneficial to both parties

Question 4

Explain the point on Imposibility

Answer 4

If one or both parties cannot fulfill the terms in the contract because it is now impossible then the contract can be annulled, this can be because of reasons beyond them, or unforeseen circumstances

Question 5

Explain the point on Illlegality

Answer 5

If activities that were legal before the contract and are involved in the contract, were to become illegal because of law changes then the contract would have to be annulled as it is no longer enforced by law

Question 6

Explain the point on the Termination clause

Answer 6

Contracts usually contain a termination clause, that specifies the procedures or conditions for a contract to be annulled, it these conditions were to be met then the contract will be annulled