A contract termination agreement, also known as a mutual termination agreement, is a legally binding document between two parties that outlines the terms and conditions of ending a contract by mutual agreement. This type of agreement is commonly used in business and commercial settings where parties wish to terminate a contract in a respectful and amicable manner.

If you are looking to draft a contract termination agreement, it is important to have a sample agreement as a reference. In this article, we will provide you with a sample contract termination agreement to help guide you in creating your own.

Sample Contract Termination Agreement:

[Date of Agreement]

[Parties Involved in Agreement]

This Contract Termination Agreement (“Agreement”) is made between [party one] and [party two] and is effective as of the date signed by both parties.


Party One and Party Two entered into a contract on [date of the original contract] (“Original Contract”), which relates to [purpose of the original contract].

Party One and Party Two have mutually agreed to terminate the Original Contract and have agreed to the terms and conditions outlined in this Agreement.


1. Termination of Original Contract: Party One and Party Two hereby agree to terminate the Original Contract as of the effective date of this Agreement.

2. Release from Liability: Party One and Party Two hereby release each other from any and all liabilities, losses, damages, claims, costs or expenses related to the Original Contract.

3. Final Payment: Party One shall pay Party Two the sum of [dollar amount] within [number of days] of the effective date of this Agreement as full and final payment for all services rendered under the Original Contract.

4. Confidentiality: Both parties agree to keep the terms and conditions of this Agreement confidential and shall not disclose any information to any third party without the prior written consent of both parties, except as required by law.

5. Governing Law: This Agreement shall be governed by the laws of the State of [state name] and any disputes arising from this Agreement shall be resolved in accordance with the laws of the State of [state name].

6. Entire Agreement: This Agreement constitutes the entire agreement between the parties and supersedes all prior negotiations and understandings between the parties concerning the subject matter of this Agreement.

7. Counterparts: This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same document.

In witness whereof, the parties have executed this Contract Termination Agreement as of the date first written above.

[Party One]

By: _____________________________

[Name], [Title]

[Party Two]

By: _____________________________

[Name], [Title]


A contract termination agreement is an essential legal document that ensures that both parties can terminate a contract in a respectful and amicable manner. By using the sample contract termination agreement provided in this article, you can create your own agreement with confidence, knowing that all the essential elements are included. Remember to consult a legal expert before signing any contract termination agreement to ensure compliance with all applicable laws and regulations.

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