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When a contract comes to an end the parties involved have no further commitments to each other, with the exception of matters such as confidentiality and warranty provisions.^[1] You should only bring a contract to a premature conclusion after careful consideration and only after all other avenues have been considered.

Contracts can come to an end, or be brought to an end, in a number of ways. This can be either by:

• The actions of the parties themselves; or
• By some unexpected event; or
• The contract is found to be an unfair and unequal agreement

The following is a list of the various ways a contract can end:

Performance

The contract has been completed by all parties according to the agreement.

Agreement to end

The parties have agreed to end the contract. This means that they contractually agree to end the contract and are bound by that decision.

Illegality

This occurs when the carrying out of the contract has become illegal.

Frustration

This is when the intention to complete an agreement has been frustrated by events beyond all parties' control. A contract can only be ended for frustration when it is impossible and unfair to demand completion of the contract, as distinct from it being inconvenient, difficult or expensive.^[2] In New South Wales, the Frustrated Contracts Act provides a formula for sorting out payments and obligations after a ‘frustrating' occurrence.^[3]

Breach of contract

This is when the refusal or inability to complete a fundamental term (condition) of the contract is a breach of contract and therefore allows for the ending of a contract.^[4] However, this could potentially lead to a claim for damages if there have been any losses or expenses as a result of the breach.

Mistake

A contract may be ended if the agreement is based on a fundamental mistake or mistaken belief about property. For example, if the parties discover that the property no longer exists.

Unfair and unequal agreements

A contract may also come to an end where the process of making the agreement can be shown to be unfair and improper, or if it results in gross inequality.

Unconscionable agreements

Unconscionable behaviour in regards to contracts includes unjust, unfair or unscrupulous conduct which is considered contrary to community standards.^[5] In business-to-business contracts of less than $3 million, a small business (not a publicly listed company) may allege unconscionable conduct where a stronger party has exploited its bargaining power to impose contractual terms or engage in conduct that would be unreasonable in the context of a particular commercial relationship.^[6]

Unconscionable contracts can also be brought to an end under the Competition and Consumer Act if there has been unacceptable behaviour by a company. Additionally, unjust contracts, both by companies and persons, may be enforceable through the Fair Trading Acts of each State.

Pressured agreements

A contract may also end if a person has only entered into an agreement because of threats, fear or actual force (duress).

Children's agreements

A person under the age of 18 is considered a child and therefore cannot be held liable to pay for non-essential items they may have ordered. A contract for a non-essential good can be abandoned by a child and it comes to an end.^[7]

For further information read "Working with contracts" provided by Department of Innovation, Industry, Science and Research.

^{[1] Department of Innovation, Industry, Science and Research - "Working with Contracts"
[2] Ibid
[3] Ibid
[4] Ibid
[5] Ibid
[6] Ibid
[7] Ibid}