When two parties have entered into a contractual agreement, it is expected that each party will fulfill its contractual obligations. Termination of contract means the end contractual relationship between parties to the contract. This can occur due to various grounds and reasons. The contract laws in Tanzania recognize various circumstances that may lead to the termination of a contract.

Some of those reasons are as follows: -

Mutual Agreement, this happen when both parties agree to end their contractual relationship. Here the parties may agree to substitute a new contract for it, or to rescind or alter it. If the parties agree to substitute a new contract for it, or to rescind or alter it, the original contract need not be performed.

Breach of terms of contract -This happens when one party has failed to fulfill its obligations within the contract. In these circumstances, the party who suffers by such breach is entitled to receive, from the party who has broken the contract, compensation for any loss or damage caused to him thereby, which naturally arose in the usual course of things from such breach, or which the parties knew, when they made the contract, to be likely to result from the breach of it.

Lapse of Fixed Term, a contract is terminated due to the lapse or end of the agreed fixed term of the existence of the contractual relationship. When a party to a contract promises to do a certain thing at or before a specified time, or certain things at or before specified times, and fails to do any such thing at or before the specified time, the contract or so much of it as has not been performed, becomes voidable at the option of the promisee, if the intention of the parties was that time should be of the essence of the contract.

Occurrences of unnatural events. occurrence of unforeseeable events that obscure fulfillment of the contract can lead to termination of the contract such as war, flood & tsunami

Completion of the Contractual Task/s, a contract is terminated once parties complete the agreed contractual task or obligations, thus the contract automatically comes to an end or is terminated.

If you need more information/assistance on termination of contract in Tanzania, please do not hesitate to contact us.

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