In our daily lives, we often have to deal with contractual issues, so it is important to understand the legal provisions governing contract termination. The contract can be terminated when both parties agree to do so. However, sometimes there are some problems that arise during the performance of the contract, resulting in the inability of both parties to continue to perform the contract. In this case, it becomes necessary to terminate the contract. However, rescission is not arbitrary, and the provisions of the law need to be followed. This article will introduce in detail the legal provisions governing contract termination to help readers better understand this legal issue.
1. The concept of contract termination.
Contract rescission refers to the act of terminating the contractual relationship after the contract is validly concluded due to the expression of intent of one or both parties. According to the provisions of the Contract Law, the termination of a contract can be boiled down to the following points:
1.Contract rescission applies to legally valid contracts;
2.Certain conditions must be met for the termination of the contract;
3.The termination of the contract extinguishes the relationship of rights and obligations between the parties;
4.The termination of the contract may be carried out by agreement or litigation.
2. Types of contract termination.
According to the provisions of the Contract Law, contract termination can be divided into the following types:
1.Termination by agreement: refers to the agreement reached by both parties to terminate the contract through consultation. The termination of the agreement shall be in writing and confirmed by the signatures or seals of both parties.
2.Termination by agreement: It means that the parties have agreed on the right of rescission in the contract, and when the agreed conditions are fulfilled, one or both parties can exercise the right of rescission to terminate the contract.
3.Statutory rescission: refers to the fact that one or both parties may exercise the statutory right to rescind the contract under the conditions prescribed by law. The conditions for statutory termination include: force majeure that makes it impossible to achieve the purpose of the contract; One of the parties delays the performance of the main debt and fails to perform it within a reasonable period of time after being demanded; Failure to achieve the purpose of the contract due to the delay in the performance of debts or other breach of contract by one of the parties; Other circumstances provided for by law.
3. Procedures for terminating the contract.
1.Procedure for terminating the agreement: Both parties shall reach a written agreement and sign or affix their seals for confirmation. The agreement shall specify the time of termination of the contract and the termination of the rights and obligations of both parties.
2.Procedure for rescission by agreement: When the agreed conditions are fulfilled, one or both parties may exercise the right of rescission. In this case, the notice shall be made in the manner agreed in the contract, and the evidence of the notice shall be retained.
3.Procedure for statutory rescission: When the statutory conditions for rescission are met, one or both parties may exercise the statutory rescission right. At this time, the other party should be notified, and the evidence of the notice should be retained. The contractual relationship is extinguished when the notice reaches the other party. If the other party raises an objection, the dispute can be resolved through litigation or arbitration.
4. Legal consequences of the termination of the contract.
1.After the termination of the contract, the relationship of rights and obligations between the two parties is extinguished;
2.The part that has already been performed shall be restored to its original state or other remedial measures shall be taken;
3.The breaching party shall be liable for breach of contract;
4.If the contract cannot be achieved due to force majeure and the purpose of the contract cannot be achieved, the parties shall not be liable for breach of contract.
V. Conclusion. In summary, it is of great significance to understand the legal provisions on contract termination in our daily life and work. When dealing with contract issues, we should follow the law and reasonably exercise our rights and obligations to protect our legitimate rights and interests. At the same time, attention should also be paid to preventing risks and avoiding unnecessary losses and disputes caused by misconduct.