Chapter 11

All good things come to an end — termination of contracts

There are three general ways in which a contract can be terminated:

1 by the term or period of the contract concluding

2 by the termination of the contract before its natural expiration by one or both parties

3 by termination of the contract at law for breach of it.

The term ends by time passing

Most commercial contracts have a limited duration. They run for a set period of time.

A limited duration has a number of benefits. It creates a sense of accountability in the person delivering the good or service. If they know they have to ‘audition’ for more business. It will tend to promote in them a higher service ethic and a stronger desire to keep the other party happy.

It also ...

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