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ARTICLE · 26 MARCH 2015

"It’s not me, it’s you": How to terminate a relationship contract

Here are a couple of options for terminating an unsigned contract or one formed without clear termination provisions.

AustraliaCorporate/Commercial Law

When entering into a contract (like with any relationship), no one expects it to go pear shaped and end in tears. So, what happens when the awkward silences and name calling are all too much and it's time to cut your losses and get out?

Terminating a contract is pretty straightforward when your contract has clear termination provisions. But we get it, there are times when in the heat of the moment no contract was signed, or perhaps what you did sign was pretty basic and had no termination clauses. Stop stressing; all hope is not lost. Here are a couple of options:

Option 1: Breach

First thing to work out is if there has been a breach of the contract by the other side. If so, then we may have just solved your problem. In order to terminate for this reason, the breach must be of an essential term (which is a really important one, e.g. to pay the fees) or be a sufficiently serious breach of a non essential term (which is a less important term, e.g. to deliver the

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