Contract Termination

1
Contract Termination
2
Notice of Termination

• Usually built into the contract
• Provides a way for either party to terminate the
  contract based on criteria set forth in the
  contract.

3
Rescission

• Defined as unmaking the contract
• Restores both parties to their situation before
  they entered the contract.

4
Reasons for Rescission

• Innocent or Fraudulent Representation
• Mutual Mistake
• Lack of Legal Capacity
• Impossibility to Perform a Contract
• Duress and Undue Influence

5
Breach

• One party fails to perform part of the contract.
• Types of Breach
• Immaterial Breach
• Material Breach
• Fundamental Breach
• Anticipatory Breach

6
How to Determine Material Breach

• Extent to which the injured party will be
  deprived of benefit.
• Extent to which the injured party can be
  compensated.
• How much the offending party is willing to do to
  cure the failure.
• If the behavior is against the Standards of Good
  Faith.

7
Case Study