How to Discontinue a Contract Due to Performance

Contracts do not always provide a date of expiration.

A contract is a legally binding document between two or more parties. Contracts often stipulate that one party agree to perform certain duties or services in exchange for a consideration. Consideration is often, but not necessarily, monetary payment. If a party fails to perform to standards articulated in the contract, there may be grounds for discontinuing the contract before it expires.

Instructions

1. Read the terms of the contract carefully. Review the language that sets forth the expectations of the party whom you believe is performing poorly. Identify any provisions that might support your legal right to discontinue the contract early. For instance, if the contract provides that a party must complete certain tasks by a certain deadline and the party has failed to honor this obligation, you may have grounds to break the agreement.

2. Determine if a fraud was perpetrated when the contract was executed. For instance, if the party misrepresented his qualifications, skills or experience, the document may be legally voided. As an example, if a contractor hired to build a roof performs poorly and you find that he misrepresented relevant construction experience on his resume or in an interview, you may have grounds to terminate the contract in the middle of the project.

3. Draft a letter to the other party indicating your intention to discontinue the contract. Specifically cite instances of poor performance, rather than simply stating that the party performed under standard. For instance, if discontinuing a contract with an employee, cite the employee's specific performance issues. Describe the nature of the default or deficiency and cite records of feedback given to show that the party had reasonable time to improve performance, but failed to correct deficiencies.

References

• The Free Dictionary: Contract
• Cultural Human Resources: Termination
• Winnipeg: Termination of Contract