Termination

From the Latin Latin: terminare, meaning 'to set bounds' or 'to end.'.

In one sentence

The legal end of a contract, agreement, or relationship.

Plain English

Termination is when a contract or agreement officially ends. This can happen by mutual agreement, when one party breaches and the other party ends it, when a set term expires, or by court order. Once a contract is terminated, neither party owes further performance, though they may owe damages if termination was wrongful.

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Example

An employee's contract is terminated for cause when she's caught stealing from the company. The employer stops paying her, and she stops working, and the employment relationship is over.

Used in a sentence

“The landlord sent a notice of termination to the tenant for failing to pay rent for three months.”

Related terms

Discharge

The release of a party from their contractual obligations.

Breach

A failure to do what a contract requires, such as not paying or not delivering.

Material Alteration

A significant change to a contract or document that affects its meaning or enforceability.

Revocation of Offer

A withdrawal of an offer by the person who made it, ending the other party's power to accept.

Lapse

An offer that expires because a deadline passes or too much time has gone by.

judgment

The court's final decision in a criminal case, determining guilt or innocence and imposing sentence.

Offer

A proposal to enter into a binding agreement on specific terms.

Acceptance

Agreeing to the exact terms of an offer, creating a binding contract.

This page is a plain-English reference and is not legal advice. Laws vary by jurisdiction and change over time. For specific situations consult a licensed attorney.