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The SC, in K.S. Manjunath v. Moorasavirappa1, held that unilateral termination of an agreement by a party is impermissible in law, except in cases where the agreement is determinable. The SC laid down the following principles, inter alia, in this regard:
i. in cases involving non-determinable contracts it should be the terminating party, which should ideally approach the Court and obtain a declaration as to the validity of the termination; and
ii. if an agreement itself gives no right to unilaterally terminate, or such right has been waived, and a party still unilaterally terminates the agreement, then such termination would amount to a breach by repudiation. In such a case, the non-terminating party can directly seek specific performance, without first seeking a declaration on the validity of termination.
Footnote
1. K.S. Manjunath v. Moorasavirappa, 2025 SCC OnLine SC 2378.
Originally published 30 January 2026.
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