How to Get out of a Legal Contract Without Being Sued

by Sherrie Scott

Getting out of a legal contract prematurely has consequences. A contract breach occurs when one or both parties do not fulfill the legal obligations of the agreement. The wronged party can file a lawsuit and possibly receive a judgment for the breach. You must have a valid legal reason to get out of a contract without being sued.

Termination Clause

Review the contract to determine if it contains legal language that allows you to end the contract early. Many contracts have a provision that gives a party the right to end the agreement under certain conditions. For example, a termination clause or provision is found in a variety of contracts, including employment agreements and property leases. This clause allows parties to end an agreement early by giving proper notice. You might have to meet certain obligations or pay a penalty for ending the contract early, but the other party has no legal grounds to file a lawsuit.

Other Party Breach

You can terminate a contract early if the other party does not live up to her end of the agreement. If the other party is unable or unwilling to follow the contract's terms, you have legal grounds to end the contract. Review the contract carefully and note any areas where the other party is in breach. If the other party made a mistake in entering into the contract or if the contract is based on misrepresentation of facts or fraud, you can void the contract without being sued.

Cannot Perform

It is possible to get out of a contract without being sued if you can no longer perform your obligations due to a particular circumstance or event. “Impossibility of performance” is grounds for contract termination because circumstances beyond the control of the contractual party prevent performance. Death or incapacity of a key player involved in the contract can cause such an impossibility. Natural disasters or destruction of something necessary to perform the obligations can also lead to impossibility. If you can prove that you cannot remain in the contract due to circumstances beyond your control, it is possible to end the contract without a breach.


You can often negotiate an end to the contract by explaining to the other contractual party your reasons for wanting to sever the agreement in a letter or an in-person meeting. Provide specific reasons why you need to get out of the contract and make recommendations that present a mutually agreeable resolution. Use alternative dispute resolution measures to help dissolve the contract amicably. Mediators, for example, are neutral third parties who can help facilitate a meeting. The mediation process is inexpensive and can help the parties reach a settlement without involving the courts.

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