Termination may take effect by mutual agreement between the parties Between “termination of a contract” and “cancellation of a contract”, there is a substantial difference. When a contract is terminated, it is no longer applicable from the date of termination. However, if a contract is cancelled, it is as if it never existed. Unless otherwise provided by law, an oral termination agreement is valid, even if the termination of the contract contains a provision that it can only be amended in writing. Resignation is a cheap remedy and is left to discretion. [4] It is used as a synonym for termination at law. A court may refuse to terminate a contract if a party has confirmed the contract by its remedy[5] or if a third party has acquired certain rights or if a substantial performance has been performed in the performance of the contract.