Ending a contract

When you buy something, the contract usually happens very quickly - you hand over your money and you take the item you bought. But some contracts can go on for a very long time, like a lease or an employment contract.

These longer contracts can come to an end in a number of different ways; here is a summary of the most common:

• A contract could come to a natural end if both sides have fulfilled their sides of the bargain, for example, if building work has been completed and paid for.
• Contracts can finish at any time if both sides agree to it.
• The contract might give the parties a right to end or 'terminate' the agreement; this is often at a certain time, or with a period of notice.
• If one person doesn't carry out their side of the bargain, they have broken the contract. This can sometimes mean that the contract can't carry on and the other person can try to get compensation.

If you are stuck in a contract that you’re not happy with and you don’t know how to get out of it, you should get in touch with an adviser at your local advice centre or call Consumer Direct. There may be a way of ending the contract legally. If you just stop fulfilling your side of the bargain, the other person might be able to take you to court.

February 2009