What is terminated by operation of law?

Asked by: Mr. Vladimir Welch  |  Last update: February 2, 2026
Score: 4.4/5 (75 votes)

"Terminated by operation of law" means a contract, agency, or legal relationship ends automatically due to specific events or circumstances defined by law, rather than by the parties' direct action or agreement, such as death, bankruptcy, incapacity, or a change making the contract's purpose illegal. This happens automatically when a statute, legal principle, or court ruling dictates the end, like a partnership dissolving upon a partner's death.

What is termination by operation of law?

Termination by Operation of Law – Certain situations such as bankruptcy, illegality, or expiry under statutory provisions can automatically end the contract.

What does "by operation of law" mean?

A way in which someone gets certain rights (or sometimes responsibilities) automatically under the law without taking action, requiring cooperation from another person, or being the subject of a court order.

What is termination of an offer by operation of law?

If the offeror dies or is incapacitated, it works as a revocation, and the offer is terminated. Similarly, if the offeree dies or is incapacitated, it amounts to a rejection, and the offer is terminated by operation of law.

What does "rejected by operation of law" mean?

Notably, your claim is deemed rejected by operation of law if no action is taken within 45 days. (§ 912.4(c).) Therefore, you are permitted to file your lawsuit 45 days after submitting the claim if no action has been taken, even if you have not received a rejection letter.

How to Prove Wrongful Termination

33 related questions found

Can an offer Cannot be accepted after it has been terminated?

It is important to note that termination of an offer means that the offer is no longer available for acceptance. Once an offer is terminated, it cannot be accepted by the offeree.

What is the hardest tort to prove?

The hardest tort to prove often depends on the facts, but Intentional Infliction of Emotional Distress (IIED) and complex negligence cases like medical malpractice, toxic torts, or cases involving proving specific intent are notoriously difficult due to high standards for "outrageous conduct," proving causation (especially in medical/toxic cases), or demonstrating malicious intent. Proving causation in medical malpractice and toxic torts requires significant expert testimony and linking a specific act to a severe outcome, while IIED demands proof of extreme behavior and severe distress beyond typical insults. 

How can a contract be discharged by operation of law?

By Operation of Law

Legal factors such as death, insolvency, or merger can discharge a contract. These occur independently of the parties' wishes. Insolvency: The court discharges obligations if a party is declared insolvent.

What are the 4 ways an offer can be terminated?

  • REVOCATION. Revocation means an offer is withdrawn by the offerer. ...
  • REJECTION. An offer is terminated when the offeree communicates his rejection to the offeror. ...
  • LAPSE OF TIME. ...
  • CONDITIONAL OFFER. ...
  • DEATH.

Which agency termination is due to operation of law?

Termination by Operation of Law: The agency ends automatically if either party dies, is incapacitated, goes bankrupt, breaches the contract, faces impossibility of performance, or if the agency's purpose becomes illegal or frustrated.

What is an example of a discharge of a contract by operation of law?

If a party dies or becomes incapacitated, the contract is discharged by operation of law unless their legal representatives can fulfill the obligations. For example, if you hire a freelancer to build an app, and the freelancer dies, the contract is discharged.

What does it mean to assign by operation of law?

An assignment is the transfer of an existing right or interest in intangible property from one person to another. An assignment may be a legal assignment or an equitable assignment or arise by operation of law. The most important types of assignment by operation of law are those that occur on death and bankruptcy.

Are bylaws legally enforceable?

Yes, bylaws are legally binding as they define how an organization operates and must comply with state laws. Can bylaws override state laws? No, bylaws cannot override state or federal laws. They must align with legal requirements.

What does operation by law mean?

The phrase "by operation of law" is a legal term that indicates that a right or liability has been created for a party, irrespective of the intent of that party, because it is dictated by existing legal principles. For example, if a person dies without a will, their heirs are determined by operation of law.

What are the three types of termination?

The three main types of employment termination are Voluntary (employee quits), Involuntary (employer fires for cause like poor performance/misconduct, or without cause like layoffs/downsizing), and often grouped as a third, Mutual Termination, where both parties agree to end the relationship, or sometimes Job Elimination (like a layoff/RIF) is listed separately. These categories cover the spectrum from an employee's choice to leave, an employer's decision to dismiss for reasons related to the employee or business needs, to a shared agreement to part ways, notes Paychex, AIHR, and Columbia University https://universitypolicies.content/termination-employment.
 

What are you entitled to if you are terminated?

Severance pay

A terminated employee may be entitled to more than the minimum amount of termination notice or pay required under employment standards legislation. This is often referred to as severance pay. Severance pay is determined under common law and not required under the Employment Standards Code.

How can an offer be terminated by operation of law?

(6) By operation of law

Finally, an offeree's power of acceptance may also be terminated by operation of law through either the death or incapacity of the offeror or as the result of a changed circumstance.

What are 5 reasons for termination?

Five common reasons for employee termination include poor work performance, misconduct (like harassment or theft), insubordination (refusing to follow orders), attendance issues (chronic lateness/absences), and violating company policy, with other major reasons being substance abuse, safety violations, or breach of confidentiality, often categorized as termination "for cause". 

Can a contract be terminated without penalty?

If the other party has failed to uphold their end of the agreement, you may be able to terminate the contract without penalty due to their breach of contract: Material Breach: A significant violation of the contract terms by the breaching party can provide grounds for termination.

What is discharge due to operation of law?

Discharge by operation of law provides a safety net for parties unable to perform their contractual duties due to legal constraints.

What is the operation of law in a contract?

“Operation of law” allows for automatic transfer or termination of rights without direct action by involved parties. In real estate, assets can transfer by operation of law due to death, divorce, or joint ownership arrangements.

In which case may a contract not be discharged by operation of law?

A contract is not discharged due to the self-induced incapacity of the parties to a contract. 5. A contract founded upon the performance of a third party will not be discharged by the happening of an event brought about by the failure or default of the third party.

What is the hardest case to win in court?

The hardest cases to win in court often involve high emotional stakes, like crimes against children or sexual assault, where jurors struggle with bias; complex, voluminous evidence, such as white-collar fraud; and defenses that challenge societal norms, like an insanity plea, which faces high scrutiny and conflicting expert testimony. Cases with weak physical evidence, uncooperative witnesses (like in sex crimes), or those involving unpopular defendants (e.g., child abusers) are particularly challenging for defense attorneys.
 

What is the stupidest court case?

We all know the most famous frivolous lawsuit story. Stella Liebeck sued McDonald's back in 1992 when she spilled hot coffee on herself. "But coffee is meant to be hot" we all cry. Dig a little deeper into the case however and it starts to look less frivolous.

Do most tort cases end in settlement?

According to the U.S. Department of Justice, about 95% of tort cases resolve through settlements. This trend occurs for several important reasons. Trials are inherently unpredictable. Even with strong evidence, jury decisions can vary based on factors outside anyone's control.