What is one condition under which a contract can be terminated?

One of the fundamental principles of contract law is that contracts are based on agreement and mutual assent. When both parties involved in a contract agree to terminate it, they can do so legally and ethically. This mutual agreement ensures that both sides are on the same page regarding the cancellation, which helps to avoid potential disputes or claims of breach. Such an agreement can be formalized through a written document, which specifies the terms under which the contract is terminated.

In contrast, the other options do not align with standard contract practices. For instance, a contract cannot typically be terminated immediately after signing, as this would not allow any party time to fulfill their obligations. Decisions made by a committee do not usually pertain to individual contracts unless explicitly authorized by the parties involved. Similarly, a successful audit does not constitute grounds for terminating a contract unless specific terms related to performance or compliance are outlined in the contract itself. Thus, the agreement of both parties is the most definitive and straightforward condition for valid termination of a contract.