terminate the contract

Meaning

This expression means to formally and legally end a binding agreement, service, or employment relationship before its scheduled expiration date. It is a highly formal legal and business term, typically requiring written notice and adherence to specific contractual clauses. The tone is decisive, legal, and serious.

Examples

• The company decided to terminate the contract due to poor performance.

  The company decided to terminate the contract due to poor performance.

• We reserve the right to terminate the contract if the terms are breached.

  We reserve the right to terminate the contract if the terms are breached.

• They had to pay a significant penalty fee to terminate the contract early.

  They had to pay a significant penalty fee to terminate the contract early.

• The client sent a formal written notice to terminate the contract.

  The client sent a formal written notice to terminate the contract.

• Under clause 12, either party may terminate the contract with thirty days' notice.

  Under clause 12, either party may terminate the contract with thirty days' notice.

Common Mistakes

• ✗ We decided to finish the contract because of the delay.

  ✓ We decided to terminate the contract because of the delay.

  While 'finish' is understood, 'terminate' is the correct, formal legal collocate for ending an agreement prematurely.

• ✗ The vendor broke the rules, so we terminated down the contract.

  ✓ The vendor broke the rules, so we terminated the contract.

  'Terminate' is not a phrasal verb and does not take particles like 'down' or 'up'.

Related Expressions

Practice

• If the supplier fails to deliver the materials by next month, we will have to ___.

  💡 Legally end our agreement with them.

  Show answer

  terminate the contract

• According to the legal advisor, we can ___ without penalty if they breach the NDA.

  💡 Formally end the binding agreement.

  Show answer

  terminate the contract