Terminating a Contract

Terminating a Contract

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  • Hi there! I was wondering if you could paint a mural for me too?
  • Sure, if it is the same size mural, then it would also cost $3000. This time, I will be able to start in two weeks worth of time. 
  • Hi Mary, this is my friend and he would like to make an offer. 
  • Of course. 
  • Sure, I will provide you a prepayment of $800 in one week's worth of time, but you will have to provide all the materials. 
  • I agree to the conditions. Let's go over the detriments and benefits, and then let's sign the contract. 
  • I'm sorry, but I do not have it. 
  • I'm here to collect my prepayment of $800. 
  • Mr. Tom's friend, Mr. Adams, wants to make a contract with Mary. He wants Mary to paint a mural for him. 
  • What? This is a breach of our contract!
  • They form a contract that is about the same as the one Mary made with Mr. Tom. They sign a written contract at the end. 
  • Well, I guess it will be fine since I haven't bought the materials yet. 
  • Mary has come one week later to Mr. Adams' house to collect the prepayment, but Mr. Adams does not have it. 
  • I agree. Thank you!
  • Well, it's alright. Lets both release each other from the contract.
  • Mr. Adams is breaching a contract. Mr. Adams tells Mary that he doesn't want Mary to paint a mural for him anymore. 
  • I'm so sorry, is there any way that we can cancel the contract?
  • Mary was mad at first, but she has not bought the materials yet, so she hasn't lost or gain any money. 
  • Mary accepts the breach and she decides that they can terminate the contract. They both release each other from the contract, which is called mutual release. 
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