How To Get Out of a Contract

A contract is an agreement between two or more people that creates a legal obligation or responsibility. They’re common throughout society for various purposes, from your apartment lease, to business deals, to gym memberships.

But sometimes, it becomes necessary to get out of a contract. Whether life gets in the way, an unexpected event that makes you need to get out of your lease early, or you want to change gyms, or for many other possible reasons, there are some legal ways to get out of a contract.

The first step is to re-read your initial contract. Before deciding to cancel, see if there’s a possibility to negotiate with the other party and change the terms of the contract to make  your legal obligations more flexible. Any amendment should follow the requirements as set out within the contract.

If you decide to continue with cancellation, looking specifically to any cancellation provisions may help you get out of the contract. The text of the contract may provide for:

• An express right to terminate the contract. This allows you to terminate the contract if certain criteria are met. It will describe the “how” and “when” and other requirements to terminate the contract. Sometimes, a fee may be necessary, such as paying out a certain amount to end your lease early.
• A cancellation or “cooling-off” period. These are usually around 30 days, but can vary, and they allow you to cancel the contract if you change your mind soon after agreeing to it. Ensure you follow the requirements set out by the provision within your contract, such as providing a notice of cancellation to specific people.

Other ways to get out of a contract include mistakes, breach, or the inability to perform.

• Mutual mistake. A mutual mistake happens with both parties enter into a contract with miscommunicated or incorrect details. The contract can subsequently be considered void.
• Inability to perform. If you are unable to perform the contract requirements due to circumstances outside of your control, you may be able to terminate the contract. This typically requires you to have sustained an injury due to an accident or having suffered some “act of nature.” In addition, you may be able to terminate a contract if the other party has failed to perform, so long as you do so before they uphold their end of the contract.
• Anticipatory breach. Anticipatory breach occurs when the other party backs out first or gives some indication that they are no longer interested in upholding their end of the contract. This means you are free.
• Breach of a contract. If the other party breaches the contract, you may be able to get out of the contract on your end. However, this can get complicated; in the event of breach, it may be necessary to contact an attorney to determine your legal obligations and plan for moving forward.

Finally, there are a handful of circumstances under which a contract can become legally void. This means you may be able to end a contract if one of these factors are present, including:

• Lack of capacity to enter into a contract. Lack of capacity could be based on age, mental capacity, etc.
• Duress.
• Undue influence.
• Misrepresentation.
• Illegality. If your contract involves illegal activities, they are generally unenforceable.
• Unconscionability. If your contract is so oppressive as to be considered shocking or fundamentally unfair, you may be able to void your contract. Courts may refuse to enforce a contract they consider unconscionable.

Contracts can be confusing, let alone trying to get out of one. If you need help getting out of a contract, please contact an attorney.

Makayla Newman is a law clerk at Kates Nussman Ellis Farhi & Earle. She is a second-year law student at Rutgers Law School in Camden, NJ where she is an Associate Editor for the Women’s Rights Law Reporter.