cancellation
Definition
Cancellation is the legal ending of a contract, agreement, or policy before its natural expiration date. Either one or both parties involved can trigger a cancellation, but the contract itself usually spells out who has that right and under what circumstances.
Example
If you cancel a software subscription mid-year, the cancellation clause in your agreement determines whether you get a refund for the unused months or forfeit that money entirely.
Watch Out
Always read the cancellation terms before signing any contract, because missing a required notice period can mean you stay locked in and owe money even after you think you've walked away.
See which terms appear in your contract?
This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.