A contract cancellation forms contains the terms under which a party is permitted to terminate a contract agreement, according to Rocket Lawyer. The form also states when the contract ends.
A party who wishes to terminate a contract should use a contract cancellation form, which formally declares one party's intent to cancel a contract with another party, according to Rocket Lawyer. This creates a record that the party who wishes to cancel notified the other party about the cancellation, as well as the date of cancellation. The contract cancellation notice also serves as a courtesy thank you as an intent to preserve future relationships.
There are many legitimate reasons a contract may need to be terminated, says the Houston Chronicle. Those reasons include a breach of contract, the impossibility of performance, the parties having a prior agreement that calls for a contract termination because of a specific reason or the rescission of a contract because one of the parties misrepresented itself, made a mistake or acted illegally. A contract rescission also may happen if one party is not able to make legal decisions because of incapacity, or if the party is not old enough to legally enter into a contract.