The facility has to give me a new contract soon anyway since they gave me the first one prior to my fourth year and graduating.
What do you mean by this?
Are you sure this is a contract and not an employment offer? As DVMDream wrote, having a 2nd year student enter into an employment contract as a DVM is problematic for a number of reasons.
If this is a contract, the legal consequences of reneging will depend on the details of the contract. In fact, a nonperformance clause should be written into the contract. There should also be details on terminating the contract; for example, it may be as simple as providing a 2-week written notice. You just have to read the contract.
If you cannot fulfill the terms of the contract, I would sit down with your employer and explain why this position is not linger a good fit for you. It's not in their interest to have you work for them if you don't want to. See if you can work it out. Give them plenty of advance notice so they can make alternative plans to fill the position.
If you can't work it out, get a lawyer to go over your situation and discuss your options.
And for anyone else reading this, ALWAYS make sure you understand all of the details and implications of the contract you are signing. A good start is to have a look at our Model Contract:
You went to veterinary school to practice medicine, not to read, write, or decipher contracts. Yet, a balanced contract can be as critical to a healthy working relationship as a balanced diet is to a healthy patient.
vinfoundation.org
In most cases it's worth getting an attorney to help with this. I've lost track of all the new graduates, interns and residents who have got into trouble signing contracts they didn't understand. You need to know what you're getting into
before you sign.
This is especially true with some of the corporation contacts I've seen lately.