Construction Lawyer & Building Solicitors Sydney | Contracts Specialist Law Firm

What is Contract Termination?

In any legal agreements, there are different factors that can lead to contract termination. Contracts are one of the most important elements in building so considering termination must be well-reviewed by both parties.

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What is Contract Termination?

Contract termination means ending a contract for specific reasons. These reasons could be mutually agreed on or could be because both parties had fulfilled their contractual obligations. However, there are other causes that can also lead to contract termination.

What are the Grounds for Contract Termination?

A contract is ended when two parties had already done their contractual obligations. Completing their tasks or performance marks the end of their agreement. They will no longer be bound legally as they are already finished with their work.

The contract can end if both parties mutually agreed to end their contractual obligations. They are allowed to be free from their tasks without completing or fulfilling them. One party may also be allowed to be released by the other party to complete even if they had not fulfilled nor completed their obligation.

The contract can be ended with frustration if there are unforeseeable events that suddenly arise along the way. This frustration must be proven and must not be caused by either party. They should also make sure that this event was unforeseeable.

Of course, a contract can end if one party breaches the contract. A breach means one party failed to perform his/her contractual obligation. Given that the task that was supposed to be performed is something major or essential for the project, the non-breaching party may consider to end the contract or perhaps just settle the situation with the other party.

Ways to Terminate a Contract

Two parties may include how they will end their contractual obligations on their building contract. So in case things go wrong with their building project, they may resort to their contract and see how they will be able to terminate it.

Sending a termination letter to the party would give them notice that their contract with you will end. The letter must contain the reason why the contract should be terminated. This must also be supported with evidence.

If the contract does not include anything on how the parties can terminate their contract, they may opt to negotiate the cancellation personally. It is advisable that their agreement on this termination is written down. If there are other parties involved, it should be made sure that they are also noted down on the written agreement.

What is a Contract Termination Letter?

A contract termination letter is a document sent by one party to another that aims to end the contract between them. This contains the reason for the termination with supported evidence. In addition, this also serves as a notice in order to let the other party of their contractual situation.

  • Date termination becomes effective
  • Reason for termination
  • Evidence to support
  • Ensure service complies with contract
  • Contains all content required by contract

Who Can Help with Contract Termination?

Construction lawyers can be consulted for contract termination. They can review or point out specific details in the contract that the other party has breached or had not fulfilled. Furthermore, it is better that contract termination is done carefully under solicitor instruction or advice.

Learn more: Building and Construction Solicitor >


Contracts Specialist principal lawyer, John Dela Cruz, can be your best option for a building lawyer around Sydney. He offers contract termination services including other contract services such as drafting and reviewing. With his extensive knowledge and over 10 years of experience in construction law, you can be confident that you are in good hands. 

Contracts Specialist is a Sydney-based law firm specialising in building and construction law. We deal with matters related to Building Disputes, Construction Contracts, and Debt Recovery day in and day out. So if you’re in a situation, call us now!

Contract Termination
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Contract Termination