At least here (Israel, but it inherited most of its laws from English law), there are, broadly (IANAL) two kinds of contracts. Time limited contracts, where both sides are bound by it for the duration of the contract, and unlimited contracts. For the second type, each side may terminate the contract at any point, for whatever reason, resulting in no more sanctions than the other side not being bound by the contract any more.
Since a domain registration contract is time bound, automatic exit is not guaranteed by law.
Obviously, this is not a complete list. For example, there are also sales contracts, which fall under neither category. Like I said, IANAL. For services, however, the above two are what you get.