Law & Legal & Attorney Contract Law

How to Discontinue a Contract Due to Performance

    • 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.

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