Law of Commerce
describe the various ways in which a contractual relationship can to an end, including partials
performance, conditions and warranties, tender of performance, impossibility, anticipatory breach,
fundamentals breach, frustration, impossibility, and exemption clauses.
Ending Contractual Relationship
There are several ways that can result in ending of the contract relationship between two
parties. In the case where there is no clear date of terminating the contract, the doors are always
open for negotiation to clarify the termination terms of the contract. Mutual agreement occurs
when the parties in the contractual agreement deem it necessary to end the contract. A contract a
can be terminated when one party has performed its required obligations according to the
LAW OF COMMERCE 2
contract and the other party has not been able to do his duty accordingly (Tepper, 2011). This is
termed as the accord and the satisfaction method implying that one party has been disappointed
by the failure of the other and the contract has to be terminated. It can as well happen when the
other party has done something contrary to the original terms of the contract, resulting to the
frustration to the contract.
The other method is the release method that occurs when one party has completed all his
obligations in the contract. A release type of contract termination is in the form of a deep
consideration that is highly esteemed by the party that is in charge to ensure the contract is
terminate for its success. Contract can as well be terminated under frustration circumstance that
shows the parties are unable to perform their duties under the given contract (Tepper, 2011). A
contract will be terminated when parties are willing to continue but this time using different
terms from the other contract. This can be defined as the novation or substitution contract
termination method caused by continued liabilities among the parties. A contractual agreement
can also be terminated on the grounds that the issue to the contract is impossible to perform due
to unavoidable circumstances.
References
Tepper, P. (2011). The Law of Contracts and the Uniform Commercial Code. Cengage Learning;
2 edition
