PMP Exam Cram™ 2

Methods for Ending a Contract or a Project

A contract can end in one of three ways:

• Successful performance

• Mutual agreement

• Breach

Successful performance is what we think of as “getting the work done.” All the work specified in the contract was performed by the seller and formally accepted by the buyer. The term contract termination refers to the other two ways a contract can end: mutual agreement and breach.

If there is mutual agreement, the contract is terminated because both the buyer and seller involved in the project agree that the project work should not continue. However, if a project contract is terminated due to breach, a party involved in the project work has failed to obey its side of the contract.

Although this describes how a contract ...