Renegotiation can be better for both parties and be will by both parties. A contract termination is also not always one sided or the fault of just one individual. Early termination is usually the result of a mutual agreement by both parties to stop the agreement of the contract. Or it could happen in one party is in fault of not abiding by the contract.
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A couple of the main reasons for early termination include nonpayment by the customer of unsatisfactory performance. Some effects on a buyers perspective of an early termination can include an unfinished project, a loss of money towards project. Some effects to the seller would be loss of income towards permits or whatever money was put into the project and it may not look the best for a company’s reputation.