What form of termination occurs when a property is completely destroyed?

The termination of a property agreement due to complete destruction is known as termination by operation of law. This concept implies that certain legal consequences occur automatically under specific circumstances, such as the destruction of the property in question. When a property is completely destroyed, it is no longer viable for use or occupancy, which leads to the legal conclusion that any existing agreements related to that property are effectively nullified.

In the context of property management, once the property is destroyed, there are no longer any obligations that either party can fulfill under the original agreement, as the premise of the agreement has been entirely compromised. Therefore, the law intervenes to declare that the contract is terminated, making the operation of law a fitting and automatic consequence of such destruction.