Contract Glossary
Cancellation
Definition
Ending a contract and wiping out any remaining obligations going forward. Unlike termination (which may preserve some rights and obligations), cancellation typically aims to undo the deal as if it never happened, though past obligations may still apply.
In Practice
You ordered 500 custom t-shirts from a printer, but they delivered the wrong design. If the error is serious enough, you can cancel the contract, meaning you return the shirts, they return your money, and both sides walk away. Cancellation rights depend heavily on what the contract says and whether a material breach occurred.
Common in these contract types
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