Termination of contract is an act occurring when the two parties break an agreement which was set between them. Below are some reasons for the Termination of contracts.
1. By Performance: The general rule is that when both parties have performed their obligations or duties, the contract can come to an end.
2. By Breach of Contract: A contract can be discharged when one of the parties fails to perform his own part of the contract by failing to perform their obligations completely.
3. By Agreement of the Parties: A contract can come to an end when both parties agree to release each other from contractual obligations.
4. By Frustration: A contract can be discharged when the subject matterThe topic dealt with or the subject represented in a debate, exposition, or work of art. More or basis of the contract has been destroyed or frustrated by an act of God
5. By Lapse of Time: A contract can be brought to an end when the period fixed for the agreement is exhausted.
6. Death or Insanity of the Party: The death or insanity of one of the parties will automatically bring a contract to an end.
7. Bankruptcy: A contract can be brought to an end when either of the parties is bankrupt.
8. Illegality of Object: If the subject matter is illegal e.g. prostitution.
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