What happens to the Agreement if a party fails to comply with its terms?

When a party fails to comply with the terms of a contract, it can lead to a concept known as "breach of contract." In many agreements, particularly those pertaining to construction or professional services, certain terms and conditions are essential for maintaining the validity of the contract. If one party does not meet their obligations as outlined in the agreement, the other party may have the right to terminate the contract.

Automatically terminating the agreement upon a breach reinforces the principle that contracts are based on mutual consent and performance. If one party does not fulfill its obligations, the contract can no longer function as intended, leading to the right of the other party to declare it terminated. This mechanism serves to protect the interests of the non-breaching party and encourages all parties to adhere closely to the agreed-upon terms.

In some instances, there may be cure periods or specific conditions outlined in the agreement that allow for correction before termination is enacted. However, should these terms not apply or if there is a significant breach, the result is typically the automatic termination of the agreement.