What does the term 'termination of contract' refer to?

The term 'termination of contract' encompasses various ways in which a contract can come to an end, which is why the most comprehensive choice is the one that includes all relevant scenarios.

Ending a contract by mutual consent refers to circumstances where both parties agree to end their contractual obligations. This can occur for numerous reasons, such as dissatisfaction with the contract’s execution or changing circumstances that make the contract unfeasible for one or both parties.

Cancelling the contract due to breach refers to situations where one party fails to fulfill their obligations under the contract, thus giving the other party the right to terminate it. This is often addressed within contract law whereby a substantial breach can lead to termination, allowing the non-breaching party to seek remedies.

By including both these scenarios, the correct answer accurately reflects the broader concept of contract termination, which can occur through various mechanisms, whether through mutual agreement or as a consequence of a breach. Thus, stating that termination of contract includes all these circumstances captures the full scope of how and why a contract may be ended.