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Cancellation of Contract The landlord may not cancel the contract without a “valid reason”. Although the interpretation of a “valid reason” may vary according to the circumstances, it should be one that anyone would agree to as unavoidable or legitimate. For example, the property might be in bad condition and pose a danger if repairs are not carried out. However, in such cases the landlord is obliged to pay compensation to the tenant. However, normally the tenant is free to cancel the contract by simply giving the landlord 1 month’s notice.