How to Dissolve a Contract

Written by qyou stoval | 13/05/2017
How to Dissolve a Contract
Check your contract for any exit clauses. (Jupiterimages/ Images)

If you are unhappy with the services or terms of a contract you have entered into with another party, you may need to dissolve or cancel the contract. Dissolving a contract may not be as easy depending on the specific terms listed when the contract was signed. Reasons for dissolving the contract can include: not following the guidelines of the contract, or you may have moved to a location where the benefits of the contract can no longer be utilised.

Read the contract carefully to look for exit clauses or terms where the contract can be dissolved. For example, some gym memberships allow you to cancel the contract if you move a certain amount of miles away from the nearest gym.

Check for any time lines that may allow you to cancel the contract within a period of time. For example, some contracts may give you 30 days to try out a service or product before you can legally cancel. Cell phone companies typically allow 30 days to try out a phone before entering into the contract.

Locate places within the contract where you can legally prove to the other party they broke one or more terms in the contract. If a breach was made you are within your legal right to dissolve or cancel the contract.

Speak with all parties listed on the contract to get mutual agreement to dissolve the contract. If the contract was drafted and both parties are unhappy with the outcome, you all may agree to dissolve the contract. This could be as simple as ripping the contract up in front of each other or writing a legal document that can be notarised stating that the previous contract is no longer valid.

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