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If you wish to terminate a business contract, there are various routes—depending on the contract and the situation. It can end automatically, you can cancel, dissolve due to non-performance, annul in the event of a defect, or part ways by mutual consent. Which route is appropriate determines whether you get out of it unscathed.
The contract ends automatically
A fixed-term contract often ends automatically on the end date, or if a resolutive condition occurs. Check whether tacit renewal has been agreed upon: without timely termination, the contract simply continues. Therefore, pay attention to the duration and the notice periods.
To cancel
You can often terminate a continuous contract, subject to the agreed or a reasonable notice period. Sometimes a ground for termination or a compelling interest is required, depending on the contract and the circumstances. Proper and timely termination prevents damage claims.
Dissolution due to breach of contract
If the other party fails to fulfill its obligations, you may terminate the agreement subject to conditions (Article 6:265 of the Dutch Civil Code). Often, you must first put the other party in default and grant a final deadline. In the event of a serious breach, this allows you to withdraw from the contract and potentially claim damages.
Destruction or by mutual consent
If the contract was entered into subject to a defect of will (such as fraud or error), you can annul it. And the calmest route is often by mutual consent: agree together to terminate the contract and record this, so that no loose ends remain.
Frequently Asked Questions
Can I just get out of a business contract?
Not just like that. It depends on the contract: expiration, termination, dissolution for breach of contract, annulment due to a defect of will, or termination by mutual consent.
What is the safest way?
Termination is often by mutual consent, recorded in writing. This prevents disputes and damage claims.
What if the other person falls short?
In that case, you may terminate the contract subject to conditions (Article 6:265 of the Dutch Civil Code), usually after a notice of default, and potentially claim damages.
Want to get out of a contract?
Our legal experts assess your options and draft a termination or settlement agreement . View our contract lawteam or schedule a free consultation.
