Termination: definition and example
Ending a contract before the work is finished, under a clause in it or for a serious breach.
By Jack Butler-Kettle · Updated
Guidance for England and Wales. Check the contract, amendments and facts that apply to your job.
What it means in practice
Termination brings contractual performance to an end under an applicable right, but does not necessarily erase rights or obligations already accrued. The ground, notice procedure and consequences need separate analysis. A wrongful attempt to terminate can itself create serious exposure.
Preserve the contract, notices and progress records and obtain legal advice on the right to terminate. Termination recovery can help organise the resulting commercial account.
Worked example
The facts
A contractor alleges default and says the subcontract is terminated immediately.
What happens
The subcontractor checks the stated ground and the required notice sequence with an adviser.
It records work completed, materials, payments and outstanding obligations at the relevant date.
What this shows
The validity of termination and the financial consequences are investigated separately rather than inferred from the letter's heading.