Skip NavigationSmall Claims Court: Consumer and Substantive Laws
 




 




§5.15 Contract Law—Termination or Cancellation

 
Lesson 5: Tort & Contract Law

Termination of a contract occurs when either party puts an end to a contract for reasons other than for its breach, pursuant to a power granted by agreement or law. On termination, all obligations that have yet to be performed on both sides are discharged. [Com C §2106(3).]

Cancellation of a contract occurs when either party puts an end to a contract because of a breach by the other party. Its effect is the same as that of termination, except that the canceling party also retains any remedy for breach of the whole contract or any unperformed balance. [Com C §2106(4).]

 

 
 
    back        Back         page 58 of 100         Next        next