Mutual Cancellation of Contract Templates -10 Free Sample Templates

When two parties who initially entered in an agreement and signed the contract, realize or feel that it is not possible for them to continue their professional relationship together instead it will be better for both of them if they just stop the deal where ever it is and terminate the agreement. In this situation, both parties sit together and decide that they will terminate the contract mutually where no one loses or wins over the other one and even if they have their differences, they won’t pursue them and won’t take any legal action against each other. In order to finalize and authorize the cancellation of the agreement, the parties sign the mutual cancellation of a contract agreement.

Brief Description of Mutual Cancellation of a Contract:

If you hear about termination of a contract, you shouldn’t be surprised because even if the agreement is written between two brothers or very close friends, there is a point on which it will just end or be terminated by either party. In the situation when one party wants to terminate the agreement but the other party wants to keep it, it’s a very difficult situation because usually the party that wants to cancel the agreement, has something against the other party and it is possible that if the agreement is cancelled, it will use that factor against the other party in court.

This is why when it comes to agreement terminations, parties prefer to use mediation or arbitration rather than going in court and after the mediator decides about the termination of the agreement, they both just announce that they have cancelled the agreement and they are no longer working together. Mutual cancellation of a contract is usually another agreement on which each party signs that they are authorizing the cancellation of the contract and they promise not to use anything against each other in court or any other legal situation.

Difference between Cancellation and Rescission of a Contract:

When it comes to cancellation and termination of an agreement, there are usually two ways or methods for the parties. First is the instant termination of the agreement without any further processing where the two parties leave each other on which ever point they are in their professional relationship. Second is the rescission of an agreement in which two parties decide to go back to the point where they started their professional relationship with the agreement. This way with the rescission of the agreement, once the agreement is terminate, it seems that legally the agreement never existed. It depends on each particular situation if the parties want to go with termination or rescission of their agreement.

Key Elements to include in the Mutual Cancellation of a Contract:

  • Name of the first party with complete address
  • Name of the second party with complete address
  • Date on which the parties have decided to cancel the agreement
  • Date on which the parties signed the cancellation agreement
  • Reference to the agreement that the parties have cancelled
  • Terms and conditions of the cancellation/termination
  • Signature of both parties with witnesses

Sample Mutual Cancellation of Contract Templates

Here is preview of Mutual Cancellation of Contract Template in MS Word Format,

Here is download link for this Mutual Cancellation of Contract Template,

Sample Mutual Cancellation of Contract Templates

Here is preview of Mutual Cancellation of Contract Template in MS Word Format,

Here is download link for this Mutual Cancellation of Contract Template,

Sample Mutual Cancellation of Contract Templates

Here is preview of Mutual Cancellation of Contract Template in MS Word Format,

Here is download link for this Mutual Cancellation of Contract Template,

Sample Mutual Cancellation of Contract Templates

Here is preview of Mutual Cancellation of Contract Template in MS Word Format,

Here is download link for this Mutual Cancellation of Contract Template,

Sample Mutual Cancellation of Contract Templates

Here is preview of Mutual Cancellation of Contract Template in MS Word Format,

Here is download link for this Mutual Cancellation of Contract Template,

Sample Mutual Cancellation of Contract Templates

Here is preview of Mutual Cancellation of Contract Template in MS Word Format,

Here is download link for this Mutual Cancellation of Contract Template,

Sample Mutual Cancellation of Contract Templates

Here is preview of Mutual Cancellation of Contract Template in MS Word Format,

Here is download link for this Mutual Cancellation of Contract Template,

Sample Mutual Cancellation of Contract Templates

Here is preview of Mutual Cancellation of Contract Template in MS Word Format,

Here is download link for this Mutual Cancellation of Contract Template,

Sample Mutual Cancellation of Contract Templates

Here is preview of Mutual Cancellation of Contract Template in MS Word Format,

Here is download link for this Mutual Cancellation of Contract Template,

Sample Mutual Cancellation of Contract Templates

Here is preview of Mutual Cancellation of Contract Template in MS Word Format,

Here is download link for this Mutual Cancellation of Contract Template,

Posted in: Contract Templates

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