A Contractor Termination Agreement is a legal document that details the ending of an agreement between two parties – typically a contractor and a government or business. It outlines the conditions under which the contract is to be terminated, and may also include provisions for indemnification, release from future liability and other related matters. The terms of this agreement should be agreed upon by both parties before entering into the agreement, in order to ensure that all parties involved are properly informed and in agreement about its contents. Ultimately, this type of agreement serves as a safeguard for both parties to walk away from the arrangement without incurring any additional liabilities.