A contract is a document that protects you and provides you with legal rights. Once the contract is signed, it is binding on both parties, who must abide by its terms. There are very few ways that another party can get out of performing the agreement.
One scenario is when the other party tries anticipatory repudiation. They inform you ahead of time that they will not be performing the contract. They may think that the agreement is no longer valid or think that you are not performing. However, they take a large risk when they just walk away from a contract. You can then stop performing on your own or sue them for breach of contract.
The contract itself may have an out for the other party if they think that you are not performing. Some agreements have the right for one party to terminate the deal if certain metrics are not being met. However, exercising a termination clause is very risky because you could then file a breach of contract lawsuit if you think that the contract was wrongfully terminated.
Finally, the other party may claim that there is a legal problem with the contract itself, usually in the formation of the agreement. They could argue that the terms of the contract are so grossly unfair that the contract should be unenforceable. Alternatively, they may claim that the agreement itself is illegal and should not be enforced. Regardless, you should always speak to an attorney when the other party is trying to abandon or terminate your contract.
If you are involved in any contract dispute, you should get help from the attorneys at Naples & Spence. You can reach us by phone at 904.657.7117 or send us a message online.
