Termination Agreement

The additional agreement on termination of the contract is aimed at termination or change of corresponding obligations. As essential conditions for the occurrence of such transactions, it is necessary to recognize any circumstances that the parties consider necessary for this.

Agreement on the termination of the contract (or its change), the composition of its terms is formed in accordance with the legal objective of the treaty itself. For example, when fixing conditions for paid provision of services, their result can not be canceled or changed. That is, the quality of services remains unchanged.

Terms on the subject matter of the supplementary agreement are formed from two elements: the target and the mandatory. The second concept is a sign of the quality of the arising relationship between the parties, determines the type and nature of this relationship. The target element includes goods (intangible and tangible), the achievement of which is considered a legal task of the contract-transaction. A model agreement on the termination of the contract is fixed by law.

The target criterion of a quantitative nature may not coincide with the material component of a particular relationship. Thus, an agreement on the termination of a contract of commission or the provision of paid services excludes the execution of material results. In this regard, the inclusion of the relevant paragraph on the achievement of the result is not mandatory.

The structure of the target component of the conditions on the subject of the original contract forms the possibility of its dissolution or change by transforming this particular part of the conditions on the subject. So, changing the direct object of the activity does not result in termination of obligations, but in changing the conditions for their fulfillment. The change of the mediated object, on the other hand, provides for an agreement on the termination of the contract, and not on changing it. Thus, the change of the insurance object can be carried out only by abolishing the previous obligations.

The agreement on termination of the contract does not include the condition for the withdrawal of the target component. If the old obligations are at the execution stage, then the target component acts as the execution object. In this regard, termination should contain an indication of the cancellation of this performance. In this case, the target component ceases to exist automatically, being an element of the previous commitment. In this case, use the concept of "removal of the target element" is incorrect, because only "cancellation of performance" should be considered.

The most common type of termination of a contract through an agreement is the cancellation for the upcoming execution of all obligations simultaneously. The components that are at the stage of execution are terminated, as well as those that are to be executed in the future. The conditions for the termination of the fulfillment of all obligations under contractual terms are an obligatory component of the subject matter of the agreement for termination of the contract. This circumstance extends both to the debtor's behavior and to the obligatory element.

Along with this, all rights on the claims of creditors that correspond to the canceled performance cease to exist, including rights for obligations that have already been started.

A separate group is formed by agreements on cancellation of contracts, which are aimed at replacing the obligatory component of the conditions for the subject of the original (main) contract.

With any change in the obligation component (that is, a change in the type of activity), one obligation ceases to exist and a new one arises. To the classic example of such a cancellation is a novation. Due to the fact that the innovation is an agreement of the participants of an existing agreement, it is qualified as a kind of agreement on termination or modification of existing obligations.