When terminating a contract unilaterally, you should know some points

Our life is so fleeting and volatile that there is practically nothing permanent. At the same time, it does not matter at all whether it concerns the ordinary life or work of an enterprise or company. If we talk about companies, then in them you can most clearly see how ambiguous everything is.

As a result of the implementation of its activities, any company or organization is faced with a contractual relationship. Moreover, they can both conclude contracts and terminate them. Often, referring to certain circumstances, the contract is terminated unilaterally. In practice, it is this type of termination that is most common.

Accordingly, the termination or amendment of the terms of the contract itself should occur on the basis of the norms and rules provided by law. In Art. 452 of the Civil Code (Clause 1) spells out the main points of termination or amendment of the contract. However, this article prescribes the rules that apply only when the contract is terminated by agreement of both parties. In the event that the contract is terminated unilaterally, other rules and requirements apply.

As a rule, the termination procedure should begin with an offer by one party to terminate or amend the contract to the other party. In practice, the party interested in the termination is obliged to send the second party with which the contract was concluded to terminate or amend the existing agreement. In turn, the second party is obliged, within the deadlines established by law (or specified in the contract), to respond to the proposal. This type of termination can also be noted as the termination of the contract unilaterally, but with the condition that the other party agrees to the terms and conditions.

In the case when it is not possible to reach a solution to this issue by peaceful means, the interested party has the right to go to court. However, according to Article 452 of the Civil Code (Clause 2), a claim can be considered in court only if one of the parties does not agree with the proposal to amend or terminate the contract.

But even if all the requirements and norms are met, it is worth noting that you can only terminate the contract for which obligations have not yet been fulfilled. This is explained by the fact that properly executed terms of the contract terminate the contract itself in accordance with Art. 408 of the Civil Code of the Russian Federation. Accordingly, the termination of the contract unilaterally cannot be executed due to the absence of the contract itself.

Considering that a change in the terms of the contract or termination thereof can only be carried out by agreement of both parties, the main point in this case is the achievement of this agreement in any manner prescribed by law.

These requirements apply to any type of contract or agreement, including a supply contract. In this case, the termination of the supply contract is governed by Art. 523 GK. In accordance with this article, the termination of the contract unilaterally is possible in the event that one of the parties violated the terms of the agreement. One of the reasons for terminating the supply contract may be the delivery of goods that are of inadequate quality, provided that the existing deficiencies cannot be eliminated. If we talk about the obligations of the buyer, then in this case, a violation can be considered repeated violations regarding the timing of payment for the goods.

With an advance settlement system at the conclusion of contracts, problems may arise during their further termination. Refund of the advance upon termination of the contract is carried out in the case when the contractor has not done anything at all, but the advance has already been received. Moreover, if some part of the work is nevertheless completed and its cost exceeds the amount of the advance payment, the contractor has the right to demand payment of costs.

Source: https://habr.com/ru/post/C10367/


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