What does 'Contract Termination' refer to?

'Contract Termination' specifically refers to the ending of a contract due to a breach or non-performance by one of the parties. This situation arises when one party fails to fulfill its obligations as outlined in the agreement, prompting the other party to exercise its right to terminate the contract. Termination can occur for various reasons, including failure to meet deadlines, inadequate service delivery, or any other failure that materially affects the contract's execution.

In contrast, extending the duration of a contract, redoing contract terms, or changing the parties involved do not constitute termination. These actions typically involve modifications or amendments to the existing agreement rather than concluding it. Understanding the concept of termination is vital as it impacts the rights and responsibilities of the parties post-termination and determines the appropriate course of action for remedies or damages following a breach.