Mutual Termination of Contract

Document Description:

The Mutual Termination of Contract template is a straightforward letter designed for use by contracting parties that wish to terminate a contract and release each other from its obligations. This agreement is often used when dissolving an employer-employee relationship as it wards off the threat of potential lawsuits and costly settlements. It is good practice to get employees to sign this contract upon the termination of a contract, as the resigning party and the employer acknowledge that they mutually terminate the contract, eliminating wrongful dismissal and termination disputes. If you are paying any severance, we recommend attaching our Severance Agreement form to this agreement.