Is the termination or the end of a contract or business relationship before the expected expiration date.
The contract can be terminated or ended in advance for two reasons:
- Agreement between the parties: An agreement is made to terminate the contract before expiration. Either by activating a clause that indicates the procedure in the event that certain circumstances arise or if the parties cease the provision of services or goods, because it is no longer of interest to either of them.
- When one of the parties decides to take advantage of the early cancellation it is because the agreements have been missed and exceeded: I.e., the contract has been breached. Therefore, according to the signed clauses, one of the parties, unilaterally, can terminate the contract and cease to be subject to the agreement.