diff --git a/crates/env/src/engine/off_chain/db/accounts.rs b/crates/env/src/engine/off_chain/db/accounts.rs
index cc01273363..93a767fe11 100644
--- a/crates/env/src/engine/off_chain/db/accounts.rs
+++ b/crates/env/src/engine/off_chain/db/accounts.rs
@@ -162,6 +162,14 @@ impl AccountsDb {
             },
         );
     }
+
+    /// Removes an account.
+    pub fn remove_account<T>(&mut self, account_id: T::AccountId)
+    where
+        T: Environment,
+    {
+        self.accounts.remove(&OffAccountId::new(&account_id));
+    }
 }
 
 /// An account within the chain.
diff --git a/crates/env/src/engine/off_chain/impls.rs b/crates/env/src/engine/off_chain/impls.rs
index 3af506df0a..18eb19256a 100644
--- a/crates/env/src/engine/off_chain/impls.rs
+++ b/crates/env/src/engine/off_chain/impls.rs
@@ -203,7 +203,7 @@ impl EnvBackend for EnvInstance {
 impl EnvInstance {
     fn transfer_impl<T>(
         &mut self,
-        destination: T::AccountId,
+        destination: &T::AccountId,
         value: T::Balance,
     ) -> Result<()>
     where
@@ -220,18 +220,50 @@ impl EnvInstance {
         }
         let dst_value = self
             .accounts
-            .get_or_create_account::<T>(&destination)
+            .get_or_create_account::<T>(destination)
             .balance::<T>()?;
         self.accounts
             .get_account_mut::<T>(&src_id)
             .expect("account of executed contract must exist")
             .set_balance::<T>(src_value - value)?;
         self.accounts
-            .get_account_mut::<T>(&destination)
+            .get_account_mut::<T>(destination)
             .expect("the account must exist already or has just been created")
             .set_balance::<T>(dst_value + value)?;
         Ok(())
     }
+
+    // Remove the calling account and transfer remaining balance.
+    //
+    // This function never returns. Either the termination was successful and the
+    // execution of the destroyed contract is halted. Or it failed during the termination
+    // which is considered fatal.
+    fn terminate_contract_impl<T>(&mut self, beneficiary: T::AccountId) -> !
+    where
+        T: Environment,
+    {
+        // Send the remaining balance to the beneficiary
+        let all: T::Balance = self.balance::<T>().expect("could not decode balance");
+        self.transfer_impl::<T>(&beneficiary, all)
+            .expect("transfer did not work ");
+
+        // Remove account
+        let contract_id = self.account_id::<T>().expect("could not decode account id");
+        self.accounts.remove_account::<T>(contract_id);
+
+        // The on-chain implementation would set a tombstone with a code hash here
+        // and remove the contract storage subsequently. Both is not easily achievable
+        // with our current off-chain env, hence we left it out here for the moment.
+
+        // Encode the result of the termination and panic with it.
+        // This enables testing for the proper result and makes sure this
+        // method returns `Never`.
+        let res = crate::test::ContractTerminationResult::<T> {
+            beneficiary,
+            transferred: all,
+        };
+        panic!(scale::Encode::encode(&res));
+    }
 }
 
 impl TypedEnvBackend for EnvInstance {
@@ -349,7 +381,7 @@ impl TypedEnvBackend for EnvInstance {
         T: Environment,
         Args: scale::Encode,
     {
-        unimplemented!("off-chain environment does not support contract invokation")
+        unimplemented!("off-chain environment does not support contract invocation")
     }
 
     fn eval_contract<T, Args, R>(
@@ -375,11 +407,11 @@ impl TypedEnvBackend for EnvInstance {
         unimplemented!("off-chain environment does not support contract instantiation")
     }
 
-    fn terminate_contract<T>(&mut self, _beneficiary: T::AccountId) -> !
+    fn terminate_contract<T>(&mut self, beneficiary: T::AccountId) -> !
     where
         T: Environment,
     {
-        unimplemented!("off-chain environment does not support contract termination")
+        self.terminate_contract_impl::<T>(beneficiary)
     }
 
     fn restore_contract<T>(
@@ -398,7 +430,7 @@ impl TypedEnvBackend for EnvInstance {
     where
         T: Environment,
     {
-        self.transfer_impl::<T>(destination, value)
+        self.transfer_impl::<T>(&destination, value)
     }
 
     fn random<T>(&mut self, subject: &[u8]) -> Result<T::Hash>
diff --git a/crates/env/src/engine/off_chain/test_api.rs b/crates/env/src/engine/off_chain/test_api.rs
index 9c2675c83b..b47aca36f4 100644
--- a/crates/env/src/engine/off_chain/test_api.rs
+++ b/crates/env/src/engine/off_chain/test_api.rs
@@ -363,3 +363,56 @@ where
         Ok(callee)
     })
 }
+
+/// The result of a successful contract termination.
+#[derive(scale::Encode, scale::Decode)]
+pub struct ContractTerminationResult<E>
+where
+    E: Environment,
+{
+    /// The beneficiary account who received the remaining value in the contract.
+    pub beneficiary: <E as Environment>::AccountId,
+    /// The value which was transferred to the `beneficiary`.
+    pub transferred: <E as Environment>::Balance,
+}
+
+#[cfg(feature = "std")]
+use std::panic::UnwindSafe;
+
+/// Tests if a contract terminates successfully after `self.env().terminate()`
+/// has been called.
+///
+/// # Usage
+///
+/// ```no_compile
+/// let should_terminate = move || your_contract.fn_which_should_terminate();
+/// ink_env::test::assert_contract_termination::<ink_env::DefaultEnvironment, _>(
+///     should_terminate,
+///     expected_beneficiary,
+///     expected_value_transferred_to_beneficiary
+/// );
+/// ```
+///
+/// See `examples/contract-terminate` for a complete usage example.
+#[cfg(feature = "std")]
+pub fn assert_contract_termination<T, F>(
+    should_terminate: F,
+    expected_beneficiary: T::AccountId,
+    expected_balance: T::Balance,
+) where
+    T: Environment,
+    F: FnMut() + UnwindSafe,
+    <T as Environment>::AccountId: core::fmt::Debug,
+    <T as Environment>::Balance: core::fmt::Debug,
+{
+    let value_any = ::std::panic::catch_unwind(should_terminate)
+        .expect_err("contract did not terminate");
+    let encoded_input: &Vec<u8> = value_any
+        .downcast_ref::<Vec<u8>>()
+        .expect("panic object can not be cast");
+    let res: ContractTerminationResult<T> =
+        scale::Decode::decode(&mut &encoded_input[..]).expect("input can not be decoded");
+
+    assert_eq!(res.beneficiary, expected_beneficiary);
+    assert_eq!(res.transferred, expected_balance);
+}
diff --git a/crates/env/src/engine/off_chain/typed_encoded.rs b/crates/env/src/engine/off_chain/typed_encoded.rs
index 44a841598a..4bc9ca24b7 100644
--- a/crates/env/src/engine/off_chain/typed_encoded.rs
+++ b/crates/env/src/engine/off_chain/typed_encoded.rs
@@ -123,7 +123,7 @@ impl<M> TypedEncoded<M> {
         }
     }
 
-    /// Creates a new typed-encoded ininitialized by `value` of type `T`.
+    /// Creates a new typed-encoded initialized by `value` of type `T`.
     pub fn new<T>(value: &T) -> Self
     where
         T: scale::Encode + 'static,
diff --git a/crates/lang/ir/src/ir/attrs.rs b/crates/lang/ir/src/ir/attrs.rs
index 6088d0339a..27ddec458e 100644
--- a/crates/lang/ir/src/ir/attrs.rs
+++ b/crates/lang/ir/src/ir/attrs.rs
@@ -453,7 +453,7 @@ where
 {
     let (ink_attrs, other_attrs) = ir::partition_attributes(attrs)?;
     let normalized = ir::InkAttribute::from_expanded(ink_attrs).map_err(|err| {
-        err.into_combine(format_err!(parent_span, "at this invokation",))
+        err.into_combine(format_err!(parent_span, "at this invocation",))
     })?;
     normalized.ensure_first(is_valid_first).map_err(|err| {
         err.into_combine(format_err!(
diff --git a/crates/lang/ir/src/ir/item/event.rs b/crates/lang/ir/src/ir/item/event.rs
index 2137584eaa..a1635c07cd 100644
--- a/crates/lang/ir/src/ir/item/event.rs
+++ b/crates/lang/ir/src/ir/item/event.rs
@@ -108,7 +108,7 @@ impl TryFrom<syn::ItemStruct> for Event {
             }
             let normalized =
                 ir::InkAttribute::from_expanded(ink_attrs).map_err(|err| {
-                    err.into_combine(format_err!(field_span, "at this invokation",))
+                    err.into_combine(format_err!(field_span, "at this invocation",))
                 })?;
             if !matches!(normalized.first().kind(), ir::AttributeArgKind::Topic) {
                 return Err(format_err!(
diff --git a/crates/lang/ir/src/ir/item_impl/mod.rs b/crates/lang/ir/src/ir/item_impl/mod.rs
index 171a3a78fa..f8f84c20a6 100644
--- a/crates/lang/ir/src/ir/item_impl/mod.rs
+++ b/crates/lang/ir/src/ir/item_impl/mod.rs
@@ -177,7 +177,7 @@ impl ItemImpl {
         if !ink_attrs.is_empty() {
             let normalized =
                 ir::InkAttribute::from_expanded(ink_attrs).map_err(|err| {
-                    err.into_combine(format_err!(impl_block_span, "at this invokation",))
+                    err.into_combine(format_err!(impl_block_span, "at this invocation",))
                 })?;
             if normalized
                 .ensure_first(&ir::AttributeArgKind::Implementation)
@@ -295,7 +295,7 @@ impl TryFrom<syn::ItemImpl> for ItemImpl {
         if !ink_attrs.is_empty() {
             let normalized =
                 ir::InkAttribute::from_expanded(ink_attrs).map_err(|err| {
-                    err.into_combine(format_err!(impl_block_span, "at this invokation",))
+                    err.into_combine(format_err!(impl_block_span, "at this invocation",))
                 })?;
             normalized.ensure_no_conflicts(|arg| {
                 !matches!(arg.kind(), ir::AttributeArgKind::Implementation | ir::AttributeArgKind::Namespace(_))
diff --git a/crates/lang/ir/src/lib.rs b/crates/lang/ir/src/lib.rs
index 9010f61045..158d5f4f4f 100644
--- a/crates/lang/ir/src/lib.rs
+++ b/crates/lang/ir/src/lib.rs
@@ -18,7 +18,7 @@
 //! parse, analyze and generate code for ink! smart contracts.
 //!
 //! The entry point for every ink! smart contract is the [`Contract`](`crate::ir::Contract`)
-//! with its [`Config`](`crate::ir::Config`) provided in the initial invokation at
+//! with its [`Config`](`crate::ir::Config`) provided in the initial invocation at
 //! `#[ink::contract(... configuration ...)]`.
 //!
 //! The ink! IR tries to stay close to the original Rust syntactic structure.
diff --git a/crates/lang/src/env_access.rs b/crates/lang/src/env_access.rs
index df733744dc..ac2526063b 100644
--- a/crates/lang/src/env_access.rs
+++ b/crates/lang/src/env_access.rs
@@ -129,7 +129,7 @@ where
         ink_env::gas_left::<T>().expect("couldn't decode gas left")
     }
 
-    /// Returns the timstamp of the current block.
+    /// Returns the timestamp of the current block.
     ///
     /// # Note
     ///
diff --git a/examples/contract-terminate/.gitignore b/examples/contract-terminate/.gitignore
new file mode 100644
index 0000000000..bf910de10a
--- /dev/null
+++ b/examples/contract-terminate/.gitignore
@@ -0,0 +1,9 @@
+# Ignore build artifacts from the local tests sub-crate.
+/target/
+
+# Ignore backup files creates by cargo fmt.
+**/*.rs.bk
+
+# Remove Cargo.lock when creating an executable, leave it for libraries
+# More information here http://doc.crates.io/guide.html#cargotoml-vs-cargolock
+Cargo.lock
\ No newline at end of file
diff --git a/examples/contract-terminate/Cargo.toml b/examples/contract-terminate/Cargo.toml
new file mode 100644
index 0000000000..05b208706b
--- /dev/null
+++ b/examples/contract-terminate/Cargo.toml
@@ -0,0 +1,36 @@
+[package]
+name = "contract_terminate"
+version = "3.0.0-rc1"
+authors = ["Parity Technologies <admin@parity.io>"]
+edition = "2018"
+
+[dependencies]
+ink_primitives = { version = "3.0.0-rc1", path = "../../crates/primitives", default-features = false }
+ink_metadata = { version = "3.0.0-rc1", path = "../../crates/metadata", default-features = false, features = ["derive"], optional = true }
+ink_env = { version = "3.0.0-rc1", path = "../../crates/env", default-features = false }
+ink_storage = { version = "3.0.0-rc1", path = "../../crates/storage", default-features = false }
+ink_lang = { version = "3.0.0-rc1", path = "../../crates/lang", default-features = false }
+
+scale = { package = "parity-scale-codec", version = "1.3", default-features = false, features = ["derive"] }
+scale-info = { version = "0.4", default-features = false, features = ["derive"], optional = true }
+
+
+[lib]
+name = "contract_terminate"
+path = "lib.rs"
+crate-type = ["cdylib"]
+
+[features]
+default = ["std"]
+std = [
+    "ink_primitives/std",
+    "ink_metadata",
+    "ink_metadata/std",
+    "ink_env/std",
+    "ink_storage/std",
+    "ink_lang/std",
+    "scale/std",
+    "scale-info",
+    "scale-info/std",
+]
+ink-as-dependency = []
diff --git a/examples/contract-terminate/lib.rs b/examples/contract-terminate/lib.rs
new file mode 100644
index 0000000000..c97f638831
--- /dev/null
+++ b/examples/contract-terminate/lib.rs
@@ -0,0 +1,101 @@
+// Copyright 2018-2020 Parity Technologies (UK) Ltd.
+//
+// Licensed under the Apache License, Version 2.0 (the "License");
+// you may not use this file except in compliance with the License.
+// You may obtain a copy of the License at
+//
+//     http://www.apache.org/licenses/LICENSE-2.0
+//
+// Unless required by applicable law or agreed to in writing, software
+// distributed under the License is distributed on an "AS IS" BASIS,
+// WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+// See the License for the specific language governing permissions and
+// limitations under the License.
+
+//! A smart contract which demonstrates behavior of the `self.env().terminate()`
+//! function. It terminates itself once `terminate_me()` is called.
+
+#![cfg_attr(not(feature = "std"), no_std)]
+#![allow(clippy::new_without_default)]
+
+use ink_lang as ink;
+
+#[ink::contract]
+pub mod just_terminates {
+    /// No storage is needed for this simple contract.
+    #[ink(storage)]
+    pub struct JustTerminate {}
+
+    impl JustTerminate {
+        /// Creates a new instance of this contract.
+        #[ink(constructor)]
+        pub fn new() -> Self {
+            Self {}
+        }
+
+        /// Terminates with the caller as beneficiary.
+        #[ink(message)]
+        pub fn terminate_me(&mut self) {
+            self.env().terminate_contract(self.env().caller());
+        }
+    }
+
+    #[cfg(test)]
+    mod tests {
+        use super::*;
+
+        use ink_env::{
+            call,
+            test,
+        };
+        use ink_lang as ink;
+
+        #[ink::test]
+        fn terminating_works() {
+            // given
+            let accounts = default_accounts();
+            let contract_id = ink_env::test::get_current_contract_account_id::<
+                ink_env::DefaultEnvironment,
+            >()
+            .expect("Cannot get contract id");
+            set_sender(accounts.alice);
+            set_balance(contract_id, 100);
+            let mut contract = JustTerminate::new();
+
+            // when
+            let should_terminate = move || contract.terminate_me();
+
+            // then
+            ink_env::test::assert_contract_termination::<ink_env::DefaultEnvironment, _>(
+                should_terminate,
+                accounts.alice,
+                100,
+            );
+        }
+
+        fn default_accounts(
+        ) -> ink_env::test::DefaultAccounts<ink_env::DefaultEnvironment> {
+            ink_env::test::default_accounts::<ink_env::DefaultEnvironment>()
+                .expect("Off-chain environment should have been initialized already")
+        }
+
+        fn set_sender(sender: AccountId) {
+            let callee = ink_env::account_id::<ink_env::DefaultEnvironment>()
+                .unwrap_or([0x0; 32].into());
+            test::push_execution_context::<Environment>(
+                sender,
+                callee,
+                1000000,
+                1000000,
+                test::CallData::new(call::Selector::new([0x00; 4])), // dummy
+            );
+        }
+
+        fn set_balance(account_id: AccountId, balance: Balance) {
+            ink_env::test::set_account_balance::<ink_env::DefaultEnvironment>(
+                account_id, balance,
+            )
+            .expect("Cannot set account balance");
+        }
+    }
+}
diff --git a/examples/contract-transfer/.gitignore b/examples/contract-transfer/.gitignore
new file mode 100644
index 0000000000..bf910de10a
--- /dev/null
+++ b/examples/contract-transfer/.gitignore
@@ -0,0 +1,9 @@
+# Ignore build artifacts from the local tests sub-crate.
+/target/
+
+# Ignore backup files creates by cargo fmt.
+**/*.rs.bk
+
+# Remove Cargo.lock when creating an executable, leave it for libraries
+# More information here http://doc.crates.io/guide.html#cargotoml-vs-cargolock
+Cargo.lock
\ No newline at end of file
diff --git a/examples/contract-transfer/Cargo.toml b/examples/contract-transfer/Cargo.toml
new file mode 100644
index 0000000000..8c8c798bb8
--- /dev/null
+++ b/examples/contract-transfer/Cargo.toml
@@ -0,0 +1,36 @@
+[package]
+name = "contract-transfer"
+version = "3.0.0-rc1"
+authors = ["Parity Technologies <admin@parity.io>"]
+edition = "2018"
+
+[dependencies]
+ink_primitives = { version = "3.0.0-rc1", path = "../../crates/primitives", default-features = false }
+ink_metadata = { version = "3.0.0-rc1", path = "../../crates/metadata", default-features = false, features = ["derive"], optional = true }
+ink_env = { version = "3.0.0-rc1", path = "../../crates/env", default-features = false }
+ink_storage = { version = "3.0.0-rc1", path = "../../crates/storage", default-features = false }
+ink_lang = { version = "3.0.0-rc1", path = "../../crates/lang", default-features = false }
+
+scale = { package = "parity-scale-codec", version = "1.3", default-features = false, features = ["derive"] }
+scale-info = { version = "0.4", default-features = false, features = ["derive"], optional = true }
+
+
+[lib]
+name = "contract_transfer"
+path = "lib.rs"
+crate-type = ["cdylib"]
+
+[features]
+default = ["std"]
+std = [
+    "ink_primitives/std",
+    "ink_metadata",
+    "ink_metadata/std",
+    "ink_env/std",
+    "ink_storage/std",
+    "ink_lang/std",
+    "scale/std",
+    "scale-info",
+    "scale-info/std",
+]
+ink-as-dependency = []
diff --git a/examples/contract-transfer/lib.rs b/examples/contract-transfer/lib.rs
new file mode 100644
index 0000000000..51b2a18c69
--- /dev/null
+++ b/examples/contract-transfer/lib.rs
@@ -0,0 +1,165 @@
+// Copyright 2018-2020 Parity Technologies (UK) Ltd.
+//
+// Licensed under the Apache License, Version 2.0 (the "License");
+// you may not use this file except in compliance with the License.
+// You may obtain a copy of the License at
+//
+//     http://www.apache.org/licenses/LICENSE-2.0
+//
+// Unless required by applicable law or agreed to in writing, software
+// distributed under the License is distributed on an "AS IS" BASIS,
+// WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+// See the License for the specific language governing permissions and
+// limitations under the License.
+
+//! A smart contract which demonstrates behavior of the `self.env().transfer()` function.
+//! It transfers some of it's balance to the caller.
+
+#![cfg_attr(not(feature = "std"), no_std)]
+#![allow(clippy::new_without_default)]
+
+use ink_lang as ink;
+
+#[ink::contract]
+pub mod give_me {
+    /// No storage is needed for this simple contract.
+    #[ink(storage)]
+    pub struct GiveMe {}
+
+    /// The error types.
+    #[derive(Debug, PartialEq, Eq, scale::Encode)]
+    #[cfg_attr(feature = "std", derive(scale_info::TypeInfo))]
+    pub enum Error {
+        /// Returned if the transfer failed.
+        TransferFailed,
+        /// Insufficient funds to execute transfer.
+        InsufficientFunds,
+        /// Transfer failed because it would have brought the contract's
+        /// balance below the subsistence threshold.
+        /// This is necessary to keep enough funds in the contract to
+        /// allow for a tombstone to be created.
+        BelowSubsistenceThreshold,
+    }
+
+    impl GiveMe {
+        /// Creates a new instance of this contract.
+        #[ink(constructor)]
+        pub fn new() -> Self {
+            Self {}
+        }
+
+        /// Transfers `value` amount of tokens to the caller.
+        ///
+        /// # Errors
+        ///
+        /// - Returns `Error::InsufficientFunds` in case the requested transfer of
+        ///   `value` exceeds the contracts balance.
+        /// - Returns `Error::BelowSubsistenceThreshold` in case the requested transfer
+        ///   of `value` would have brought the contract's balance below the subsistence
+        ///   threshold.
+        /// - Returns `Error::TransferFailed` in case the transfer failed for another
+        ///   reason.
+        #[ink(message)]
+        pub fn give_me(&mut self, value: Balance) -> Result<(), Error> {
+            if value > self.env().balance() {
+                return Err(Error::InsufficientFunds)
+            }
+            self.env()
+                .transfer(self.env().caller(), value)
+                .map_err(|err| {
+                    match err {
+                        ink_env::Error::BelowSubsistenceThreshold => {
+                            Error::BelowSubsistenceThreshold
+                        }
+                        _ => Error::TransferFailed,
+                    }
+                })
+        }
+    }
+
+    #[cfg(test)]
+    mod tests {
+        use super::*;
+
+        use ink_env::{
+            call,
+            test,
+        };
+        use ink_lang as ink;
+
+        #[ink::test]
+        fn transfer_works() {
+            // given
+            let contract_balance = 100;
+            let accounts = default_accounts();
+            let mut give_me = create_contract(contract_balance);
+
+            // when
+            set_sender(accounts.eve);
+            set_balance(accounts.eve, 0);
+            assert_eq!(give_me.give_me(80), Ok(()));
+
+            // then
+            assert_eq!(get_balance(accounts.eve), 80);
+        }
+
+        #[ink::test]
+        fn transfer_fails_insufficient_funds() {
+            // given
+            let contract_balance = 100;
+            let accounts = default_accounts();
+            let mut give_me = create_contract(contract_balance);
+
+            // when
+            set_sender(accounts.eve);
+            let ret = give_me.give_me(120);
+
+            // then
+            assert_eq!(ret, Err(Error::InsufficientFunds));
+        }
+
+        /// Creates a new instance of `GiveMe` with `initial_balance`.
+        ///
+        /// Returns the `contract_instance`.
+        fn create_contract(initial_balance: Balance) -> GiveMe {
+            let accounts = default_accounts();
+            let contract_id = ink_env::test::get_current_contract_account_id::<
+                ink_env::DefaultEnvironment,
+            >()
+            .expect("Cannot get contract id");
+            set_sender(accounts.alice);
+            set_balance(contract_id, initial_balance);
+            GiveMe::new()
+        }
+
+        fn set_sender(sender: AccountId) {
+            let callee = ink_env::account_id::<ink_env::DefaultEnvironment>()
+                .unwrap_or([0x0; 32].into());
+            test::push_execution_context::<Environment>(
+                sender,
+                callee,
+                1000000,
+                1000000,
+                test::CallData::new(call::Selector::new([0x00; 4])), // dummy
+            );
+        }
+
+        fn default_accounts(
+        ) -> ink_env::test::DefaultAccounts<ink_env::DefaultEnvironment> {
+            ink_env::test::default_accounts::<ink_env::DefaultEnvironment>()
+                .expect("Off-chain environment should have been initialized already")
+        }
+
+        fn set_balance(account_id: AccountId, balance: Balance) {
+            ink_env::test::set_account_balance::<ink_env::DefaultEnvironment>(
+                account_id, balance,
+            )
+            .expect("Cannot set account balance");
+        }
+
+        fn get_balance(account_id: AccountId) -> Balance {
+            ink_env::test::get_account_balance::<ink_env::DefaultEnvironment>(account_id)
+                .expect("Cannot set account balance")
+        }
+    }
+}