LawRegulatory Compliance

In what cases is it possible to terminate the contract?

In the activities of enterprises and private entrepreneurs, there is sometimes a need to revise the terms of concluded contracts until their complete dissolution. Termination of the contract is a procedure provided for by civil law and having certain features. It is always connected with the early termination of the performance of obligations assumed by the parties to the contract. The Civil Code specifies the methods for the lawful termination of contracts and the procedure for this procedure.

Termination of the agreement by mutual consent of the parties is the easiest and painless from a legal point of view. In this case, an agreement on its termination must necessarily be signed, in which voluntary mutual consent of the parties to this procedure is fixed. This document has legal force, and, being properly written, will avoid further litigation.

To properly formalize the termination of the contract (the sample agreement can be downloaded on any legal support website), it is necessary to indicate in it the names and requisites (or names and titles) of both parties, describe in detail the reasons for termination and specify the date of the earlier concluded contract. It should be pointed out that the parties are exempt from the obligations under the contract being terminated from the moment of signing this agreement.

In case if under the earlier concluded contract the process of fulfilling the obligations has already begun (work is being done, the delivery of cargo is carried out, etc.), which can not be stopped at the same time, the agreement should detail the procedure and deadlines for the termination of the outstanding obligations.

Unilateral cancellation of the contract can be made by a court decision in case of serious violations of its terms by the other party, as well as on other grounds provided for by the Civil Code. Article 451 provides for the termination or amendment of the terms of the contract for a significant change in circumstances. Those are recognized changes that make compliance with the terms of the contract meaningless in connection with the inability to achieve the originally planned result or the extreme difficulty of such an achievement.

In the event of a cardinal violation of one of the parties to the terms of the contract, the court is entitled, upon termination of the contract, to oblige it to repay the material damage inflicted. If it is impossible to fulfill the terms of the contract for reasons beyond the control of the parties (for example, changing the economic conditions of the market), the court must provide for an equitable distribution of losses and expenses arising from the fact of termination.

Separate consideration deserves a situation when there is a termination of the contract of the contract. If the customer can terminate such a contract at any time, then for the contractor the law provides a strictly limited list of grounds for termination. These grounds can be stipulated in the contract (almost any) or apply to cases provided for by law.

Legally, termination of the contract by the contractor is possible if the customer provided unfit or poor-quality materials, equipment or documentation and refused to replace them, provided that the contractor warns of their unfitness. The same applies to working conditions or other circumstances with unfavorable consequences or the inability to complete works on time, provided that the customer is timely warned and the customer refuses to make the necessary changes, the contractor has a legal right to demand the termination of the contract.

In addition, in the case of a contract for the construction of an object, termination of the contract by the contractor is possible if the customer violates contractual obligations (failure to provide necessary documentation, equipment, materials) or with obvious signs that such duties will not be performed on time. In this case, the contractor may also claim damages incurred as a result of the customer's failure to fulfill the obligations assumed.

Similar articles

 

 

 

 

Trending Now

 

 

 

 

Newest

Copyright © 2018 en.birmiss.com. Theme powered by WordPress.