How to Terminate an Agreement Document
- 1). Read the agreement carefully, paying special attention to the fine print. Many agreements contain a termination clause that allows either party to terminate the agreement by advance written notice. If your agreement contains a termination clause, simply follow its terms and terminate your performance under the contract as soon as your termination notice becomes effective.
- 2). Some states require a "cooling-off period" in which purchasers of real estate or consumer goods may terminate the agreement by notifying the party within 72 hours of signing it. In the case of real estate, the cooling-off period will not apply once the closing is completed and title has been transferred to the buyer. In the case of consumer goods purchase agreements, the 72-hour cooling-off period will apply only if the agreement is classified as an "adhesion agreement" - the seller wrote the agreement and the buyer had no chance to modify its terms.
- 3). Carefully check contractual obligations to see if the other party has violated any of its obligations. If the other party committed a serious violation (known as a "material breach" by lawyers), you will be entitled to terminate the agreement without notice, and you may be entitled to damages from the other party.
- 4). Determine whether you can take advantage of any contractual defenses. If you were a minor when you signed the agreement, then the agreement is not binding on you (the age of majority is 18 in most states). If you were drunk or mentally incapacitated when you signed the agreement, you may also terminate the agreement. Other contractual defenses such as fraud or coercion may also be used if they can be established with reliable evidence.
- 5). Seek a settlement with the other party that allows you to terminate the agreement if none of the foregoing methods is applicable to your situation. Although you may end up having to pay damages to the other party, the other party is likely to settle for less than what a court would award, in order to avoid the time and expense of a lawsuit. Execute a settlement and release agreement and keep a copy for your records.