Often it is more desirable to renegotiate a contract than to terminate one. What do you think may be some of the effects of a contract termination from the buyer’s perspective? What about from the seller’s perspective? No copy and paste or screenshot pictures please use a reference
From the perspective of buyer when a contract is terminated the buyer may loose some of the sale figure if the material is used by buyer to sale in the market, buyer has to negotiate contract with another parties which required time and cost, buyer may miss delivery of key products to its own buyers in time, upfront monetary cost for the buyer may raise. Buyer will face significant problem when a contract is terminated.
From the seller perspective, future revenue will be lost along with selling of the inventory in time, inventory holding cost will be rise,similarly negotiation cost will be incurred. Seller will find it difficult to produce same level of product if contract is terminated and production process of seller may reduce to produce smaller quantity.