In general, the effect of the termination of a contract is to discharge the parties from their unperformed obligations under the contract. However, termination does not affect liabilities of the parties for breaches of the contract that occurred prior to the contract being terminated.
What are the consequences if one of the parties fails to fulfill his or her obligations as specified in the contract?✍
If one of the parties fails to fulfill his or her obligations as specified in the contract, it is considered a breach of contract. A contract breach may lead to an award of damages as reimbursement for the innocent party's financial losses. Contractual obligations usually depend on a contract's subject matter.
