By Performance: Where the parties have performed all that is required of them under the contract. This is the most common way for a contract to end.
Example: Elaine contracts with Remus Ltd to deliver products to Remus Ltd’s Clients on a one-off basis for a fee of $1,500. The contract ends when Elaine delivers the products and Remus Ltd pays Elaine for the work.
Some obligations may continue after the end of the contract. For example, the contract may continue to require you to keep some information confidential.
By Agreement: Where both parties agree to end the contract before the work is complete.
By Frustration: Where the contract cannot continue for some reason beyond the control of you or the hirer and where neither party is at fault. For example, a contract may be ‘frustrated’ if a party dies or a new law has made the performance of the contract illegal. It is important to understand that a contract cannot be deliberately frustrated by either you or the hirer.
For Convenience: Where a term of the contract allows a party to terminate a contract at any time by notice (where there is no fault by the other party). These clauses are common in government contracts and will usually state that the government will be liable only for direct costs up to the date of termination incurred by the independent contractor as a result of the termination. This would not include the loss of future profits.
Due to a Breach: Where one party has breached an essential term of the contract and the other party decides to end the contract because of that breach. This is discussed more fully below. ‘Essential terms’ are those that reflect the core of what the contract is intended to delive