When parties agree to end a contract early, a termination agreement formally discharges both parties from their remaining obligations. Without a written agreement, one party may still claim breach of contract for early termination. The agreement should address outstanding payments, return of property, and survival of any post-termination obligations.

• Termination by agreement requires consent of all parties
• Early termination without agreement: may be breach of contract — damages could be claimed
• Accrued rights: rights that arose before termination still survive
• Post-termination provisions: confidentiality, IP, non-compete may survive termination
• Full and final settlement: consider whether all claims are released

Legal reference: Contract law (agreement, consideration); Contracts (Rights of Third Parties) Act 1999