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Is there any way to get out of a business contract?

You signed a contract with another business to deliver a service. Then, things change, creating a situation where it is extremely difficult for you to continue providing the service. You want out of the contract.

Many business owners end up facing this complicated problem. Of course, the best way to resolve this is to negotiate with the other party and try to get them to agree to let you go. When this fails, you may still have some valid legal options available to you.

What if it is impossible for me to fulfill the contract?

In a case where holding up your end of the contract becomes completely impossible through no fault of your own, such as an event you could have not foreseen, you have a better chance of getting out of the contract. "Impossibility" here means nobody could possibly carry out the terms of the contract. For example, your contract obliges you to pave a parking lot. After the contract is signed, a government inspection reveals that the site is extremely toxic and access is completely shut down. Now, no one can possibly pave this lot.

What if it becomes too difficult or expensive?

On the other hand, if holding to the contract becomes extremely difficult but not impossible, there can be several types of outcomes, depending on the facts. Industry standards, in particular, play a large role in determining how much difficulty would be too much.

For example, your contract states you have to provide a certain type and amount of wood by a certain date for an agreed-upon price. However, your suppliers have abruptly doubled their prices, so now you will actually pay to deliver the wood to your customer. What is the norm in your industry in the area where you provide your services? Would most business owners in your customer's position agree to pay a higher price or let you out of the contract? If the answer is yes, you may have an easier time.

Another important factor is whether the contract involves the sale of consumer goods. If it does, extreme difficulty, or impracticability, in fulfilling the contract can be grounds for dissolving it.

Real life rarely works in straightforward ways, so each contract case often has additional complications. Sometimes you can get out of one part of a contract but not others. These laws are extremely complicated, and if a court ends up finding you were wrong, you can suffer heavy financial losses. For this reason, if you are having a problem with a contract, consult an experienced attorney before taking any action. A knowledgeable lawyer can lay out your options and recommend an effective action plan.

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