Can you terminate a contract with someone over allegations?

Question

I was wondering if anyone can answer my question and that is can you terminate a contract with someone over allegations alone? For example say I have a company that makes TV shows and I get a famous actor to join the cast and we have contract and everything now there are allegations that the actor has sexually harassed co workers and sexually assaulted a fan of theirs now it hasn't been proven that they have done these things they are merely just allegations but are they enough to terminate the contract?

Answer 1

As a general rule, a party to a contract may not unilaterally terminate a contract. That said, there are many legal principles that provide for the lawful termination of a contract. And, of course, a contract itself may establish a basis for termination. Obviously, the non-cancelling party may disagree with the cancelling party's position as to whether the law or the underlying "allegation" permits termination. Thus, a party whose contract was terminated by the other will be faced with a decision as to whether to "accept" the termination or attempt to enforce the contract via a lawsuit (or other dispute resolution process if stated in the contract). The foregoing is offered for the general interest of the reader. It is NOT legal advice or opinion and the comment does NOT create an attorney-client relationship. Legal advice and opinion are provided by the firm only upon engagement with respect to specific factual situations.