At the beginning of the year, a garment company ordered a batch of highest-end silk containing 12 colors and embroidery patterns from a well-known domestic clothing company, and the two parties agreed that within 30 days from the date of signing the contract, company A designed the clothing pattern and color matching and handed it over to company B, and company B handed over the clothing to company A within 7 days after receiving the plan. Later, due to the heavy work, Company A handed over the drawings to Company B two months after the contract was signed, and Company B also received too many orders and handed over the drawings to Company A for more than half a month. Both parties have breached the contract, so both parties agree not to pursue liability. So, is such an agreement between the two companies legal?
The contract is signed by both parties on the premise of consensus, and is binding on both parties to the contract, and both parties must act in accordance with the contract and actively perform the contract. In this case, after Company A and Company B signed the sale and purchase agreement, Company A failed to produce the drawings on time, and Company B did not deliver the silk on time, and both parties were in breach of contract. According to Article 592 of the Civil Code, if both parties breach the contract, they shall each bear the corresponding liability. Because both parties have violated the contract, both Company A and Company B shall bear the liability for breach of contract, and since the non-performance of the contract has not caused actual economic losses, it is reasonable and feasible for both parties to agree that they will not pursue liability.
If the parties breach the contract, they shall bear the liability for breach of contract, and if both parties violate the contract, they shall bear the corresponding liability for breach of contract. Civil acts are based on the principle of voluntariness, and where both parties have not caused losses due to their respective breaches, it may be agreed that each party will not be held accountable. In reality, if both parties to the contract breach the contract at the same time due to various circumstances, the two parties can negotiate to cancel the contract or not pursue each other's responsibilities to save their respective costs.