diff --git a/contract/__manifest__.py b/contract/__manifest__.py
index 68f343c25..4752f3c2b 100644
--- a/contract/__manifest__.py
+++ b/contract/__manifest__.py
@@ -20,9 +20,11 @@
     'depends': ['base', 'account', 'product'],
     "external_dependencies": {"python": ["dateutil"]},
     'data': [
+        'security/groups.xml',
         'security/contract_tag.xml',
         'security/ir.model.access.csv',
         'security/contract_security.xml',
+        'security/contract_terminate_reason.xml',
         'report/report_contract.xml',
         'report/contract_views.xml',
         'data/contract_cron.xml',
@@ -30,6 +32,7 @@
         'data/mail_template.xml',
         'wizards/contract_line_wizard.xml',
         'wizards/contract_manually_create_invoice.xml',
+        'wizards/contract_contract_terminate.xml',
         'views/abstract_contract_line.xml',
         'views/contract.xml',
         'views/contract_line.xml',
@@ -37,6 +40,7 @@
         'views/contract_template_line.xml',
         'views/res_partner_view.xml',
         'views/res_config_settings.xml',
+        'views/contract_terminate_reason.xml',
     ],
     'installable': True,
 }
diff --git a/contract/models/__init__.py b/contract/models/__init__.py
index 6d46b4b61..e1b4b30cb 100644
--- a/contract/models/__init__.py
+++ b/contract/models/__init__.py
@@ -12,3 +12,4 @@ from . import res_partner
 from . import contract_tag
 from . import res_company
 from . import res_config_settings
+from . import contract_terminate_reason
diff --git a/contract/models/contract.py b/contract/models/contract.py
index bed38d0bb..e6f55cd8b 100644
--- a/contract/models/contract.py
+++ b/contract/models/contract.py
@@ -7,7 +7,7 @@
 # License AGPL-3.0 or later (http://www.gnu.org/licenses/agpl).
 
 from odoo import api, fields, models
-from odoo.exceptions import ValidationError
+from odoo.exceptions import ValidationError, UserError
 from odoo.tools.translate import _
 
 
@@ -93,6 +93,29 @@ class ContractContract(models.Model):
     )
     tag_ids = fields.Many2many(comodel_name="contract.tag", string="Tags")
     note = fields.Text(string="Notes")
+    is_terminated = fields.Boolean(
+        string="Terminated", readonly=True, copy=False
+    )
+    terminate_reason_id = fields.Many2one(
+        comodel_name="contract.terminate.reason",
+        string="Termination Reason",
+        ondelete="restrict",
+        readonly=True,
+        copy=False,
+        track_visibility="onchange",
+    )
+    terminate_comment = fields.Text(
+        string="Termination Comment",
+        readonly=True,
+        copy=False,
+        track_visibility="onchange",
+    )
+    terminate_date = fields.Date(
+        string="Termination Date",
+        readonly=True,
+        copy=False,
+        track_visibility="onchange",
+    )
 
     @api.multi
     def _inverse_partner_id(self):
@@ -458,3 +481,43 @@ class ContractContract(models.Model):
         domain = self._get_contracts_to_invoice_domain(date_ref)
         contracts_to_invoice = self.search(domain)
         return contracts_to_invoice._recurring_create_invoice(date_ref)
+
+    @api.multi
+    def action_terminate_contract(self):
+        self.ensure_one()
+        context = {"default_contract_id": self.id}
+        return {
+            'type': 'ir.actions.act_window',
+            'name': _('Terminate Contract'),
+            'res_model': 'contract.contract.terminate',
+            'view_type': 'form',
+            'view_mode': 'form',
+            'target': 'new',
+            'context': context,
+        }
+
+    @api.multi
+    def _terminate_contract(
+        self, terminate_reason_id, terminate_comment, terminate_date
+    ):
+        self.ensure_one()
+        if not self.env.user.has_group("contract.can_terminate_contract"):
+            raise UserError(_('You are not allowed to terminate contracts.'))
+        self.contract_line_ids.filtered('is_stop_allowed').stop(terminate_date)
+        self.write({
+            'is_terminated': True,
+            'terminate_reason_id': terminate_reason_id.id,
+            'terminate_comment': terminate_comment,
+            'terminate_date': terminate_date,
+        })
+        return True
+
+    @api.multi
+    def action_cancel_contract_termination(self):
+        self.ensure_one()
+        self.write({
+            'is_terminated': False,
+            'terminate_reason_id': False,
+            'terminate_comment': False,
+            'terminate_date': False,
+        })
diff --git a/contract/models/contract_line.py b/contract/models/contract_line.py
index 81c09e05e..0c4de8667 100644
--- a/contract/models/contract_line.py
+++ b/contract/models/contract_line.py
@@ -296,9 +296,19 @@ class ContractLine(models.Model):
         'successor_contract_line_id',
         'predecessor_contract_line_id',
         'is_canceled',
+        'contract_id.is_terminated',
     )
     def _compute_allowed(self):
         for rec in self:
+            if rec.contract_id.is_terminated:
+                rec.update({
+                    'is_plan_successor_allowed': False,
+                    'is_stop_plan_successor_allowed': False,
+                    'is_stop_allowed': False,
+                    'is_cancel_allowed': False,
+                    'is_un_cancel_allowed': False,
+                })
+                continue
             if rec.date_start:
                 allowed = get_allowed(
                     rec.date_start,
@@ -310,13 +320,14 @@ class ContractLine(models.Model):
                     rec.is_canceled,
                 )
                 if allowed:
-                    rec.is_plan_successor_allowed = allowed.plan_successor
-                    rec.is_stop_plan_successor_allowed = (
-                        allowed.stop_plan_successor
-                    )
-                    rec.is_stop_allowed = allowed.stop
-                    rec.is_cancel_allowed = allowed.cancel
-                    rec.is_un_cancel_allowed = allowed.uncancel
+                    rec.update({
+                        'is_plan_successor_allowed': allowed.plan_successor,
+                        'is_stop_plan_successor_allowed':
+                            allowed.stop_plan_successor,
+                        'is_stop_allowed': allowed.stop,
+                        'is_cancel_allowed': allowed.cancel,
+                        'is_un_cancel_allowed': allowed.uncancel,
+                    })
 
     @api.constrains('is_auto_renew', 'successor_contract_line_id', 'date_end')
     def _check_allowed(self):
@@ -1163,7 +1174,7 @@ class ContractLine(models.Model):
         ).id
         return {
             'type': 'ir.actions.act_window',
-            'name': 'Resiliate contract line',
+            'name': 'Terminate contract line',
             'res_model': 'contract.line.wizard',
             'view_type': 'form',
             'view_mode': 'form',
@@ -1251,6 +1262,7 @@ class ContractLine(models.Model):
     @api.model
     def _contract_line_to_renew_domain(self):
         return [
+            ('contract_id.is_terminated', '=', False),
             ('is_auto_renew', '=', True),
             ('is_canceled', '=', False),
             ('termination_notice_date', '<=', fields.Date.context_today(self)),
diff --git a/contract/models/contract_terminate_reason.py b/contract/models/contract_terminate_reason.py
new file mode 100644
index 000000000..21f2c0c1c
--- /dev/null
+++ b/contract/models/contract_terminate_reason.py
@@ -0,0 +1,15 @@
+# Copyright 2020 ACSONE SA/NV
+# License AGPL-3.0 or later (http://www.gnu.org/licenses/agpl).
+
+from odoo import fields, models
+
+
+class ContractTerminateReason(models.Model):
+
+    _name = 'contract.terminate.reason'
+    _description = 'Contract Termination Reason'
+
+    name = fields.Char(required=True)
+    terminate_comment_required = fields.Boolean(
+        string="Require a termination comment", default=True
+    )
diff --git a/contract/security/contract_terminate_reason.xml b/contract/security/contract_terminate_reason.xml
new file mode 100644
index 000000000..b34cd9089
--- /dev/null
+++ b/contract/security/contract_terminate_reason.xml
@@ -0,0 +1,27 @@
+<?xml version="1.0" encoding="utf-8"?>
+<!-- Copyright 2020 ACSONE SA/NV
+     License AGPL-3.0 or later (http://www.gnu.org/licenses/agpl). -->
+
+<odoo>
+
+    <record model="ir.model.access" id="contract_terminate_reason_access_manager">
+        <field name="name">contract.terminate.reason access manager</field>
+        <field name="model_id" ref="model_contract_terminate_reason"/>
+        <field name="group_id" ref="account.group_account_manager"/>
+        <field name="perm_read" eval="1"/>
+        <field name="perm_create" eval="1"/>
+        <field name="perm_write" eval="1"/>
+        <field name="perm_unlink" eval="1"/>
+    </record>
+
+    <record model="ir.model.access" id="contract_terminate_reason_access_user">
+        <field name="name">contract.terminate.reason access user</field>
+        <field name="model_id" ref="model_contract_terminate_reason"/>
+        <field name="group_id" ref="account.group_account_invoice"/>
+        <field name="perm_read" eval="1"/>
+        <field name="perm_create" eval="1"/>
+        <field name="perm_write" eval="1"/>
+        <field name="perm_unlink" eval="1"/>
+    </record>
+
+</odoo>
diff --git a/contract/security/groups.xml b/contract/security/groups.xml
new file mode 100644
index 000000000..a954b2a21
--- /dev/null
+++ b/contract/security/groups.xml
@@ -0,0 +1,12 @@
+<?xml version="1.0" encoding="utf-8"?>
+<!-- Copyright 2020 ACSONE SA/NV
+     License AGPL-3.0 or later (http://www.gnu.org/licenses/agpl). -->
+
+<odoo>
+
+    <record id="can_terminate_contract" model="res.groups">
+        <field name="name">Contract: Can Terminate Contracts</field>
+        <field name="implied_ids" eval="[(4, ref('account.group_account_invoice'))]"/>
+    </record>
+
+</odoo>
diff --git a/contract/tests/test_contract.py b/contract/tests/test_contract.py
index 9f613de8c..53daf7180 100644
--- a/contract/tests/test_contract.py
+++ b/contract/tests/test_contract.py
@@ -6,7 +6,7 @@ from collections import namedtuple
 from datetime import timedelta
 from dateutil.relativedelta import relativedelta
 from odoo import fields
-from odoo.exceptions import ValidationError
+from odoo.exceptions import ValidationError, UserError
 from odoo.tests import common
 
 
@@ -110,6 +110,9 @@ class TestContractBase(common.SavepointCase):
         )
         cls.acct_line.product_id.is_auto_renew = True
         cls.contract.company_id.create_new_line_at_contract_line_renew = True
+        cls.terminate_reason = cls.env['contract.terminate.reason'].create({
+            'name': 'terminate_reason'
+        })
 
 
 class TestContract(TestContractBase):
@@ -2364,3 +2367,51 @@ class TestContract(TestContractBase):
         self.assertEqual(
             self.acct_line.recurring_next_date, to_date('2019-06-01')
         )
+
+    def test_action_terminate_contract(self):
+        action = self.contract.action_terminate_contract()
+        wizard = (
+            self.env[action['res_model']]
+                .with_context(action['context'])
+                .create(
+                {
+                    'terminate_date': '2018-03-01',
+                    'terminate_reason_id': self.terminate_reason.id,
+                    'terminate_comment': 'terminate_comment',
+                }
+            )
+        )
+        self.assertEqual(wizard.contract_id, self.contract)
+        with self.assertRaises(UserError):
+            wizard.terminate_contract()
+        group_can_terminate_contract = self.env.ref(
+            "contract.can_terminate_contract"
+        )
+        group_can_terminate_contract.users |= self.env.user
+        wizard.terminate_contract()
+        self.assertTrue(self.contract.is_terminated)
+        self.assertEqual(self.contract.terminate_date, to_date('2018-03-01'))
+        self.assertEqual(
+            self.contract.terminate_reason_id.id, self.terminate_reason.id
+        )
+        self.assertEqual(self.contract.terminate_comment, 'terminate_comment')
+        self.contract.action_cancel_contract_termination()
+        self.assertFalse(self.contract.is_terminated)
+        self.assertFalse(self.contract.terminate_reason_id)
+        self.assertFalse(self.contract.terminate_comment)
+
+    def test_terminate_date_before_last_date_invoiced(self):
+        self.contract.recurring_create_invoice()
+        self.assertEqual(
+            self.acct_line.last_date_invoiced, to_date('2018-02-14')
+        )
+        group_can_terminate_contract = self.env.ref(
+            "contract.can_terminate_contract"
+        )
+        group_can_terminate_contract.users |= self.env.user
+        with self.assertRaises(ValidationError):
+            self.contract._terminate_contract(
+                self.terminate_reason,
+                'terminate_comment',
+                to_date('2018-02-13'),
+            )
diff --git a/contract/views/contract.xml b/contract/views/contract.xml
index 33492798e..cabb8f0a6 100644
--- a/contract/views/contract.xml
+++ b/contract/views/contract.xml
@@ -7,16 +7,38 @@
         <field name="model">contract.contract</field>
         <field name="arch" type="xml">
             <form>
+                <field name="is_terminated" invisible="1"/>
+                <div class="alert alert-danger" role="alert" style="margin-bottom:0px;" attrs="{'invisible': [('is_terminated','=',False)]}">
+                    <p>This contract was terminated for the reason <strong><field name="terminate_reason_id" options="{'no_open':True}"/></strong> on <field name="terminate_date"/>.</p>
+                    <p><field name="terminate_comment"/></p>
+                </div>
                 <header>
                     <button name="action_contract_send"
                             type="object"
                             string="Send by Email"
+                            attrs="{'invisible': [('is_terminated','=',True)]}"
                             groups="base.group_user"/>
                     <button name="recurring_create_invoice"
                             type="object"
-                            attrs="{'invisible': [('create_invoice_visibility', '=', False)]}"
+                            attrs="{'invisible': ['|', ('create_invoice_visibility', '=', False)]}"
                             string="Create invoices"
                             groups="base.group_no_one"/>
+                    <button name="action_terminate_contract"
+                            type="object"
+                            string="Terminate Contract"
+                            attrs="{'invisible': [('is_terminated','=',True)]}"
+                            groups="contract.can_terminate_contract"/>
+                    <button name="action_terminate_contract"
+                            type="object"
+                            string="Update Termination Details"
+                            attrs="{'invisible': [('is_terminated','=',False)]}"
+                            groups="contract.can_terminate_contract"/>
+                    <button name="action_cancel_contract_termination"
+                            type="object"
+                            confirm="Are you sure you want to re-activate this contract?"
+                            string="Cancel Contract Termination"
+                            attrs="{'invisible': [('is_terminated','=',False)]}"
+                            groups="contract.can_terminate_contract"/>
                 </header>
                 <sheet string="Contract">
                     <div class="oe_button_box" name="button_box">
@@ -38,41 +60,43 @@
                                class="oe_edit_only"/>
                         <h3>
                             <field name="name" class="oe_inline"
+                                   attrs="{'readonly': [('is_terminated','=',True)]}"
                                    placeholder="e.g. Contract XYZ"/>
                         </h3>
                     </div>
                     <group name="main">
                         <group>
                             <field name="commercial_partner_id" invisible="1"/>
-                            <field name="partner_id" required="1"/>
-                            <field name="payment_term_id"/>
-                            <field name="user_id"/>
+                            <field name="partner_id" required="1" attrs="{'readonly': [('is_terminated','=',True)]}"/>
+                            <field name="payment_term_id" attrs="{'readonly': [('is_terminated','=',True)]}"/>
+                            <field name="user_id" attrs="{'readonly': [('is_terminated','=',True)]}"/>
                         </group>
                         <group>
                             <field name="contract_template_id"
+                                   attrs="{'readonly': [('is_terminated','=',True)]}"
                                    domain="['|', ('contract_type', '=', contract_type), ('contract_type', '=', False)]"
                                    context="{'default_contract_type': contract_type}"/>
                             <field name="contract_type" invisible="1"
                                    required="1"/>
-                            <field name="fiscal_position_id"/>
+                            <field name="fiscal_position_id" attrs="{'readonly': [('is_terminated','=',True)]}"/>
                             <field name="tag_ids" widget="many2many_tags"/>
                         </group>
                     </group>
 
                     <group name="recurring_invoices">
                         <group>
-                            <field name="journal_id" required="1"/>
+                            <field name="journal_id" required="1" attrs="{'readonly': [('is_terminated','=',True)]}"/>
                             <field name="recurring_next_date"/>
                         </group>
                         <group>
-                            <field name="pricelist_id"/>
+                            <field name="pricelist_id" attrs="{'readonly': [('is_terminated','=',True)]}"/>
                             <field name="date_end"/>
                         </group>
                     </group>
                     <notebook>
                         <page name="recurring_invoice_line"
                               string="Recurring Invoices">
-                            <field name="contract_line_ids"
+                            <field name="contract_line_ids" attrs="{'readonly': [('is_terminated','=',True)]}"
                                    context="{'default_contract_type': contract_type}"/>
                             <field name="note"/>
                         </page>
@@ -80,15 +104,18 @@
                             <field name="create_invoice_visibility"
                                    invisible="1"/>
                             <group>
-                                <field name="code"/>
-                                <field name="group_id"/>
+                                <field name="code" attrs="{'readonly': [('is_terminated','=',True)]}"/>
+                                <field name="group_id" attrs="{'readonly': [('is_terminated','=',True)]}"/>
                                 <field name="company_id"
+                                       attrs="{'readonly': [('is_terminated','=',True)]}"
                                        options="{'no_create': True}"
                                        groups="base.group_multi_company"/>
                                 <field name="currency_id"
+                                       attrs="{'readonly': [('is_terminated','=',True)]}"
                                        options="{'no_create': True}"
                                        groups="base.group_multi_currency"/>
                                 <field name="invoice_partner_id"
+                                       attrs="{'readonly': [('is_terminated','=',True)]}"
                                        required="1"/>
                             </group>
                             <group string="Legend (for the markers inside invoice lines description)"
diff --git a/contract/views/contract_terminate_reason.xml b/contract/views/contract_terminate_reason.xml
new file mode 100644
index 000000000..5aafa2aed
--- /dev/null
+++ b/contract/views/contract_terminate_reason.xml
@@ -0,0 +1,45 @@
+<?xml version="1.0" encoding="utf-8"?>
+<!-- Copyright 2020 ACSONE SA/NV
+     License AGPL-3.0 or later (http://www.gnu.org/licenses/agpl). -->
+
+<odoo>
+
+    <record model="ir.ui.view" id="contract_terminate_reason_form_view">
+        <field name="model">contract.terminate.reason</field>
+        <field name="arch" type="xml">
+            <form>
+                <sheet>
+                    <group>
+                        <field name="name"/>
+                        <field name="terminate_comment_required"/>
+                    </group>
+                </sheet>
+            </form>
+        </field>
+    </record>
+
+
+    <record model="ir.ui.view" id="contract_terminate_reason_tree_view">
+        <field name="model">contract.terminate.reason</field>
+        <field name="arch" type="xml">
+            <tree>
+                <field name="name"/>
+                <field name="terminate_comment_required"/>
+            </tree>
+        </field>
+    </record>
+
+    <record model="ir.actions.act_window" id="contract_terminate_reason_act_window">
+        <field name="name">Contract Termination Reason</field>
+        <field name="res_model">contract.terminate.reason</field>
+        <field name="view_mode">tree,form</field>
+    </record>
+
+    <record model="ir.ui.menu" id="contract_terminate_reason_menu">
+        <field name="name">Contract Termination Reason</field>
+        <field name="parent_id" ref="menu_config_contract"/>
+        <field name="action" ref="contract_terminate_reason_act_window"/>
+        <field name="sequence" eval="16"/>
+    </record>
+
+</odoo>
diff --git a/contract/wizards/__init__.py b/contract/wizards/__init__.py
index 1fa21bcc9..32e54545d 100644
--- a/contract/wizards/__init__.py
+++ b/contract/wizards/__init__.py
@@ -1,2 +1,3 @@
 from . import contract_line_wizard
 from . import contract_manually_create_invoice
+from . import contract_contract_terminate
diff --git a/contract/wizards/contract_contract_terminate.py b/contract/wizards/contract_contract_terminate.py
new file mode 100644
index 000000000..45c4d457b
--- /dev/null
+++ b/contract/wizards/contract_contract_terminate.py
@@ -0,0 +1,38 @@
+# Copyright 2020 ACSONE SA/NV
+# License AGPL-3.0 or later (http://www.gnu.org/licenses/agpl).
+
+from odoo import api, fields, models
+
+
+class ContractContractTerminate(models.TransientModel):
+
+    _name = 'contract.contract.terminate'
+    _description = "Terminate Contract Wizard"
+
+    contract_id = fields.Many2one(
+        comodel_name="contract.contract",
+        string="Contract",
+        required=True,
+        ondelete="cascade",
+    )
+    terminate_reason_id = fields.Many2one(
+        comodel_name="contract.terminate.reason",
+        string="Termination Reason",
+        required=True,
+        ondelete="cascade",
+    )
+    terminate_comment = fields.Text(string="Termination Comment")
+    terminate_date = fields.Date(string="Termination Date", required=True)
+    terminate_comment_required = fields.Boolean(
+        related="terminate_reason_id.terminate_comment_required"
+    )
+
+    @api.multi
+    def terminate_contract(self):
+        for wizard in self:
+            wizard.contract_id._terminate_contract(
+                wizard.terminate_reason_id,
+                wizard.terminate_comment,
+                wizard.terminate_date,
+            )
+        return True
diff --git a/contract/wizards/contract_contract_terminate.xml b/contract/wizards/contract_contract_terminate.xml
new file mode 100644
index 000000000..7b478c2bc
--- /dev/null
+++ b/contract/wizards/contract_contract_terminate.xml
@@ -0,0 +1,34 @@
+<?xml version="1.0" encoding="utf-8"?>
+<!-- Copyright 2020 ACSONE SA/NV
+     License AGPL-3.0 or later (http://www.gnu.org/licenses/agpl). -->
+
+<odoo>
+
+    <record model="ir.ui.view" id="contract_contract_terminate_form_view">
+        <field name="model">contract.contract.terminate</field>
+        <field name="arch" type="xml">
+            <form string="Contract Contract Terminate">
+                <group>
+                    <field name="contract_id" invisible="True"/>
+                    <field name="terminate_comment_required" invisible="True"/>
+                    <field name="terminate_date"/>
+                    <field name="terminate_reason_id" widget="selection"/>
+                    <field name="terminate_comment" attrs="{'required': [('terminate_comment_required', '=', True)]}"/>
+                </group>
+                <footer>
+                    <button name="terminate_contract"
+                            string="Terminate Contract"
+                            class="btn-primary"
+                            confirm="Are you sure you want to terminate this contract?"
+                            type="object"/>
+                    <button string="Cancel"
+                            class="btn-default"
+                            special="cancel"/>
+                </footer>
+            </form>
+        </field>
+    </record>
+
+
+
+</odoo>
diff --git a/product_contract/models/sale_order.py b/product_contract/models/sale_order.py
index c5e9d416e..c34a118eb 100644
--- a/product_contract/models/sale_order.py
+++ b/product_contract/models/sale_order.py
@@ -17,6 +17,18 @@ class SaleOrder(models.Model):
         compute='_compute_need_contract_creation'
     )
 
+    @api.constrains('state')
+    def check_contact_is_not_terminated(self):
+        for rec in self:
+            if rec.state not in (
+                'sale',
+                'done',
+                'cancel',
+            ) and rec.order_line.filtered('contract_id.is_terminated'):
+                raise ValidationError(
+                    _("You can't upsell or downsell a terminated contract")
+                )
+
     @api.depends('order_line.contract_id', 'state')
     def _compute_need_contract_creation(self):
         for rec in self:
diff --git a/product_contract/models/sale_order_line.py b/product_contract/models/sale_order_line.py
index 26a30ed38..a422d087e 100644
--- a/product_contract/models/sale_order_line.py
+++ b/product_contract/models/sale_order_line.py
@@ -50,6 +50,17 @@ class SaleOrderLine(models.Model):
         copy=False,
     )
 
+    @api.constrains('contract_id')
+    def check_contact_is_not_terminated(self):
+        for rec in self:
+            if (
+                rec.order_id.state not in ('sale', 'done', 'cancel')
+                and rec.contract_id.is_terminated
+            ):
+                raise ValidationError(
+                    _("You can't upsell or downsell a terminated contract")
+                )
+
     @api.multi
     @api.depends('product_id')
     def _compute_contract_template_id(self):
diff --git a/product_contract/tests/test_sale_order.py b/product_contract/tests/test_sale_order.py
index 0a938258b..623eb52df 100644
--- a/product_contract/tests/test_sale_order.py
+++ b/product_contract/tests/test_sale_order.py
@@ -342,3 +342,18 @@ class TestSaleOrder(TransactionCase):
             self.env['contract.contract'].search(action['domain']),
             self.sale.order_line.mapped('contract_id'),
         )
+
+    def test_check_contact_is_not_terminated(self):
+        self.contract.is_terminated = True
+        with self.assertRaises(ValidationError):
+            self.order_line1.contract_id = self.contract
+
+    def test_check_contact_is_not_terminated(self):
+        self.order_line1.contract_id = self.contract
+        self.sale.action_confirm()
+        self.contract.is_terminated = True
+        self.sale.action_cancel()
+        with self.assertRaises(ValidationError):
+            self.sale.action_draft()
+        self.contract.is_terminated = False
+        self.sale.action_draft()
diff --git a/product_contract/views/sale_order.xml b/product_contract/views/sale_order.xml
index 4fd1b90b9..23147e660 100644
--- a/product_contract/views/sale_order.xml
+++ b/product_contract/views/sale_order.xml
@@ -41,6 +41,7 @@
                        domain="['|',('contract_template_id','=',contract_template_id),
                        ('contract_template_id','=',False),
                        ('partner_id','=',parent.partner_id),
+                       ('is_terminated','=',False),
                        ]"/>
                 <field name="contract_line_id"
                        attrs="{'invisible': [('is_contract', '=', False)]}"