Termination and Cancellation Rights

Summary

According to the UCC and the Restatement (Second) of Contracts, a "termination" occurs when either party, pursuant to a power created by agreement or law, puts an end to the contract other than for its breach. A "cancellation," on the other hand, occurs when either party puts an end to the contract for breach by the other. Nevertheless, the word "termination" is commonly used more generically, and its usage refers to situations where a party cancels due to breach.