rescission of a contract

Conditions for termination of the contract

1、 Legal termination of contract

Under any of the following circumstances, the parties may terminate a contract ：

1. The purpose of the contract cannot be achieved due to force majeure 。

If the purpose of the contract cannot be realized due to force majeure, the contract shall lose its meaning and be attributed to extinction. In this case, the law allows the parties to terminate the contractual relationship by exercising the right to terminate.

2. Prior to the expiration of the time limit for performance, one party clearly stated or indicated by its own behavior that the main reason for non performance debt 。

This is obligor Refusal to perform, also called breach of contract, includes express breach of contract and implied breach of contract. As Conditions for contract termination First, it requires the debtor to be at fault, second, the refusal is illegal (without legal reasons), and third, it requires the debtor to be able to perform.

3. One party delayed the performance of main debts and failed to perform within a reasonable period after being urged to do so

Procedure of contract termination

1. General procedures.

The general procedure is the procedure to terminate the contract in the absence of special provisions of the law or special agreement between the parties. When the contract is terminated according to the general procedure, the person with the right to terminate the contract shall first notify the other party, that is, express the intention to terminate the contract to the other party in a clear manner, and the contract is terminated when the notice reaches the other party.

another In addition, the person who has the right to terminate shall be within the time limit for exercising the right to terminate. If the law stipulates or the parties agree on a time limit for exercising the right of rescission, and the parties fail to exercise it at the end of the time limit, the right shall be extinguished. method If the law does not stipulate or the parties do not stipulate the time limit for exercising the right of rescission, and the party fails to exercise the right within a reasonable time after being urged by the other party, the right shall be extinguished. It can be seen that the exercise period of the right of rescission is a period of exclusion, which indicates that Within the time limit, the right of rescission is valid. If the time limit for exercising the right is exceeded, the right of rescission shall be extinguished.

2. Special procedures

Effect of termination of contract

The general legal consequences resulting from the termination of the contract relationship are as follows:

(1) Terminate the obligations of both parties to the contract to perform in the future

If the contract has not been performed after it is dissolved, the performance shall be terminated.

(2) Termination of the contract does not affect the right of the parties to claim damages

close There are two different approaches to civil legislation in the main countries of civil law system with regard to whether compensation for losses can be claimed after termination. One is exclusionism, which stipulates that when the family terminates the contract, it cannot claim damages at the same time; If claim for damages Compensation cannot terminate the contract. Termination of contract and compensation for damages are mutually exclusive and cannot coexist! The second is the coexistence doctrine, which stipulates that the parties can request to terminate the contract and compensate for losses at the same time. However, countries that adopt such practices are paying damages There are differences in the scope of compensation

Contract termination and cancellation

Termination and Cancellation of contract The main differences are:

1. From the perspective of scope of application, the scope of application of revocation is relatively broad, not only applicable to the contract field lacking effective elements, but also applicable to the occasions of flawed declaration of will and civil acts; The rescission is only applicable to the situation where the valid contract is terminated in advance.

2. From the perspective of the causes, the reasons for revocation are directly stipulated by law; The reasons for dissolution are both stipulated by law and agreed by the parties.

3. From the perspective of the effect, revocation has retroactive effect, and the revoked civil act is invalid from the beginning; However, rescission often has no retroactive effect, and only when the parties have a special agreement or the law has a special provision, and the contract is terminated by breach of contract and not continued, can it have retroactive effect

Contract Termination Agreement

first party:

Party B:

Party A and Party B originally signed the Contract (HZ No. ____) on ___, ___, ___, ___. Now, due to ___________________________________________________, Party ____ is unable to continue to perform the Contract. Upon mutual agreement, the Contract is terminated on ___, ___.

Party ___ shall be responsible for compensation for the losses caused to Party ___ due to the termination of the contract. damages It shall be paid in ___ installments from ___ to ___. It is hereby agreed.

This agreement shall come into force after being signed and sealed by both parties. The agreement is in ___ copies, one for each party.

Party A: (seal) Party B: (seal)

Representative: (seal) Representative: (seal)

specific date