Humber/Ontario Real Estate Course 1 Exam Practice

Which is NOT a method of contract termination?

1. Performance

2. Operation of Law

3. Breach

4. Injunction

5. Mutual Agreement

6. Rescission

The correct answer is: Injunction

The correct answer, which identifies an option that is not a method of contract termination, is indeed a method that does not function as a termination mechanism for contracts. An injunction is a court order that requires a party to do or refrain from doing a specific act. While it can impact contractual obligations, it does not end a contract itself. Instead, an injunction may be sought to prevent a party from breaching a contract or to maintain the status quo while a legal dispute is resolved. On the other hand, methods such as performance, operation of law, breach, mutual agreement, and rescission all serve as recognized ways to terminate a contract. Performance refers to fulfilling the terms of the contract, while operation of law can include situations where legislation or legal changes automatically terminate an agreement. Breach occurs when one party fails to fulfill their responsibilities under the contract, which can lead to termination. Mutual agreement means both parties consent to terminate the contract, and rescission is a legal remedy that cancels a contract and restores the parties to their pre-contractual positions. Thus, understanding these distinctions highlights why the option in question does not qualify as a method of contract termination.