Contract termination

This subtopic discusses the termination and expiry of contracts and contains useful precedent termination and breach notices.

Termination and expiry of contracts

The Practice Note: Termination and expiry of contracts provides an overview of the different causes of termination and ways to discharge a contract, including their practical and legal consequences. It considers expiry, contractual rights to terminate (including common termination events), termination for breach of contract (including repudiatory breach), rescission, void contracts, discharge by agreement, frustration, force majeure, illegality, insolvency, discharge by other subsequent events (such as merger, alteration or death), and issues to consider in the context of terminating business-to-consumer contracts.

For guidance on providing for rights of termination when drafting a business-to-business commercial contract, see Practice Note: Drafting term and termination clauses—commercial contracts and Drafting and negotiating term and termination clauses—checklist.

For an example clause entitling parties to terminate an agreement on the occurrence of specified events or for convenience, see Precedent: Termination clause.

Terminating a contract

The Practice Note: How to terminate a contract is a ‘how to’ guide on terminating a commercial, business-to-business contract, which signposts relevant content. It includes

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

TAKE A FREE TRIAL

Latest Commercial News

CMA fines Euro Car Parks for failure to comply with information notice

The Competition and Markets Authority (CMA) has imposed a £473,000 penalty on Euro Car Parks Limited for failing to respond to an information notice issued in July 2025, representing the first use of the CMA's fining powers under the Digital Markets, Competition and Consumers Act 2024 (DMCCA 2024). The penalty was issued under Schedule 5 of the Consumer Rights Act 2015, as amended by the DMCCA 2024, and represents 75% of the maximum possible fixed charge. The CMA said Euro Car Parks failed to respond to the notice for three months despite seven separate attempts to secure a response. The company later stated that it had blocked the CMA's emails because it believed them to be fraudulent, which the CMA did not accept as a reasonable excuse. Euro Car Parks has appealed the decision to the High Court, which has refused the company's application for an injunction to prevent the CMA from naming it.

CMA speech outlines consumer protection progress under DMCCA 2024 consumer regime

The Competition and Markets Authority (CMA) has published a speech by its Acting Executive Director for Consumer Protection, Emma Cochrane, outlining the CMA’s progress and future priorities under the consumer protection provisions of the Digital Markets, Competition and Consumers Act 2024 (DMCCA 2024). The speech reflects on the first 10 months of the regime, which came into force in April 2025. Cochrane describes the DMCCA 2024 as marking a ‘genuine shift’ in UK consumer enforcement, noting that, for the first time, the CMA can decide whether consumer protection laws have been infringed, rather than having to litigate through the courts, and can issue penalties directly where breaches are found. She says the CMA’s approach to exercising these powers is guided by its ‘4Ps’ principles: pace, predictability, proportionality and process. She also highlights the CMA’s publication of updated guidance and engagement with businesses to support compliance under the new regime, and points to the new banned practices relating to fake reviews introduced by the DMCCA 2024. Looking ahead, she says further enforcement action can be expected, particularly in areas of essential household spend and in relation to fake reviews, unfair contract terms and drip pricing where businesses fail to change their behaviour. She concludes that the CMA is beginning to see the deterrent effect of the new regime, with businesses investing in training and reviewing practices, and says the CMA will continue to use its new powers ‘thoughtfully, strategically and effectively’ to protect consumers and support compliant businesses.

Commercial weekly highlights—12 February 2026

This week's edition of Commercial weekly highlights includes: announcement of the Court of Appeal decision in Tyson International Company Ltd v Gic Re, India, Corporate Member Ltd which confirmed the court’s approach where parties acknowledge a potential inconsistency in an agreement, announcement of the Court of Appeal decision in Sahara Energy Resource Ltd v Societe Nationale de Raffinage SA which considered whether a Joint Report signed by the parties constituted a legally binding agreement extending to all categories of undisputed claims, and news that the Advertising Association has published a Best Practice Guide for the Responsible Use of Generative AI in advertising.

Revising CMA37—key takeaways from the CMA’s draft unfair contract terms guidance

Commercial analysis: The Competition and Markets Authority (CMA) has launched a consultation on its revised guidance on unfair contract terms, aimed at modernising and clarifying its existing 2015 guidance (CMA37). While the law under the Consumer Rights Act 2015 (CRA 2015) remains unchanged, the CMA’s new draft reflects recent legal and enforcement developments, including its expanded direct enforcement powers under the Digital Markets, Competition and Consumer Act 2024 (DMCCA 2024). The draft guidance is shorter, more structured, and written in plain language, with an emphasis on the core principles of fairness and transparency, practical examples, and digital consumer journeys. Paolo Palmigiano, partner at Taylor Wessing LLP gives his views on the draft.