Last Updated on June 28, 2023 by Journal Fact
When you run a business, you enter into written or oral contracts with other parties that you will need supplies or services from. Such contracts can vary from cleaning services to accountants. They are legally binding when they contain essential elements such as offers, consideration, acceptance, capacity, competency, and obligation mutuality. However, when these legal agreements no longer work, what can you do to get out of them? In this case, you need a Sattiraju & Tharney business attorney to help you handle this matter. Your attorney will provide you with options and guide you through the contract termination process.
How to Terminate Business Contracts
It is only legal to terminate a contract when the other party involved does not live up to the obligation they must fulfill. A good example is when a company stops giving the number of products agreed upon. A contract can be terminated if a party breaks the mutuality of obligation.
In addition, contract termination is also legally possible if one party cannot provide the product or service the other party expected from them. The party that does not get the product or service can terminate the contract due to the impossibility of performance.
Other reasons a contract can be terminated include a lack of capacity to create the contract, the contract being based on misrepresentation or fraud, and when both parties are mistaken about a contract’s fundamental aspect.
What to Keep in Mind Before You Proceed
Sometimes, the grounds to termite a business contract are clear-cut, but others are not. In this case, the other party involved might dispute the facts and assert that you cannot terminate the contract. Perhaps you claimed this party breached the contract but they deny this. If you do not perform your obligation as stipulated in the contract and you do not have legal grounds, the other party could sue you for breach of contract and hold you liable for damages.
If You are Not Sure, Consult with a Lawyer
If you are not sure whether you can legally termite a business contract or the other party will dispute your legal right to get out of a contract, you should speak to a business lawyer before you act. A lawyer can help you evaluate the situation and determine the appropriate approach to terminate the contract when allowed by law. Your attorney will work t protect your interests and rights as well as propel your company forward.