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Is it possible to cancel/void/rescind a contract after both parties have signed it but the contract is not in-effect yet? Of course, the cancellation has been decided after mutual agreement.

For example, both the parties signed a contract today (22nd May, 2018) that will become effective on July 1st, 2018. Can either of the party cancel/void/rescind it before July 1st, 2018, provided it’s covered in a clause in the agreement. Also, considering the cooling period, if any.

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    "provided it’s covered in a clause in the agreement" AFAIK, you can do anything that is covered in a clause in the agreement, unless it is illegal (and I doubt there any laws against cancelling contracts). So if the contract has a cancellation clause,it can be cancelled (in accordance with said clause). – Free Radical May 22 '18 at 13:06
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    What do you mean, "the cancellation has been decided after mutual agreement"? Does this mean that both parties agree to cancel the contract? In that case, nothing else matters. If both parties relieve the other of their contractual obligations, then performance will no longer be required. – A.fm. May 22 '18 at 13:41
  • >> What do you mean, "the cancellation has been decided after mutual agreement"? -- Both the parties have agreed mutually to cancel the contract before it becomes effective. – krishnajay May 23 '18 at 8:42
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Yes. Anything related to a contract can be done by mutual agreement.

  • Not entirely true - there must be consideration on both sides. A variation to a contract is itself a contract. – Dale M May 22 '18 at 21:40
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    @DaleM Not all jurisdictions take that position. Many allow a contract to be modified by mutual consent without consideration. Also, if the original contract was supported by consideration, then a mutual relinquishment of rights under the contract is likewise supported by consideration, the same consideration that supported the original contract flowing in the opposite direction. – ohwilleke May 22 '18 at 22:57
  • true - ending a contract where both parties still have rights will have those rights as consideration but one where one party has fulfilled all their obligations is problematic - this is why banking a cheque for part payment is not acceptance of part payment. – Dale M May 22 '18 at 23:00
  • @DaleM If both parties agree, there's nobody left with standing to sue. – Martin Bonner Apr 28 at 15:35

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