Set a meeting and request the attendance of all who are required. Web terminating a contract by mutual consent — using a settlement agreement. Although a natural part of employment, the proper process for terminating an employee’s contrac t is often awkward and contentious. Web a mutual contract termination agreement template should include vital reasons why all parties wish to exit a contract. Web a generic form of termination agreement for use when parties to a commercial contract have mutually agreed to terminate the agreement.