Can I terminate a contract?

The short answer

There are different ways to terminate a contract. In case of breach of contract (failure to comply with agreements), you can terminate the contract, but first you have to put the other party in default. In case of error, fraud or threat, you can void the contract. Termination is also possible in case of force majeure or unforeseen circumstances. The method of termination depends on the reason why you want to end the contract.

What does the law say?

The Dutch Civil Code regulates when and how you can terminate a contract. Article 6:265 of the Dutch Civil Code states that you can terminate in case of breach of contract after a notice of default. Articles 6:228 and 6:230 of the Dutch Civil Code regulate annulment in case of error, fraud or threat. In case of force majeure or unforeseen circumstances, Article 6:258 of the Dutch Civil Code may apply. These laws protect both parties against unreasonable situations.

What should you pay attention to?

Pay close attention to the deadlines for termination or annulment, as these are often limited. Always document why you want to terminate the contract and keep all communication. A wrong procedure can mean that you are still bound by the contract. In case of doubt, legal advice is recommended before taking any steps.

Example from practice

Suppose you buy a car that breaks down within a month due to a hidden defect. The seller refuses to resolve the issue despite your complaints. You then put him in default in writing with a reasonable deadline to resolve it. If he does not, you can terminate the purchase contract and get your money back. However, you must be able to prove that the defect was already there at the time of sale.

What can you do?

Follow these steps to correctly terminate or void a contract.