Mutual cancellation of contract agreement

This is a simple agreement to cancel any legal contract and avoid claims being made by either party against the other, in the future.
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About this document

This mutual cancellation agreement formalises the cancellation of any agreement or contract and safeguards the interests of the parties. It will most frequently be used post 'fall out' of the parties – that is, disagreement, for whatever reason. Where 'termination' is provided for in the original document, this mutual cancellation agreement overwrites those provisions.

The document has been drawn with the presumption that there prevails enough goodwill among the parties to deal sensibly with the process of calling off an existing contract. If the parties are beyond simple negotiation, they should seek professional help with dispute resolution.

Application and features

  • Very flexible to suit most eventualities;
  • Suitable for any type of business, agreement or contract;
  • Extensive explanatory notes;
  • Appropriate legal provisions, warranties and exclusions.


  • Background;
  • Effective date of cancellation;
  • Agreement terms, including payoff and completion dates;
  • Exceptions;
  • Reasonableness;
  • Future cooperation.

This document was written by a solicitor for Net Lawman. It complies with current Indian law.

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Rakesh Taneja

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