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Termination of a contract refers to the act by which one or both parties to the contract terminate the validity of the contract in accordance with the law or the agreement of the parties. Once the contract is signed, it has national legal protection.

Termination of Contract

Termination of a contract refers to the act by which one or both parties to the contract terminate the validity of the contract in accordance with the law or the agreement of the parties. Once the contract is signed, it has national legal protection.

There are two types of contract rescission. Dissolution is one of the reasons for the termination of the contract's debt, and it is also a legal system. When the principle of change of situation is applied, the termination of a contract refers to the fact that it is really difficult to perform the contract. Compared with the dissolution in the general sense, this dissolution has an important feature that the court determines it directly based on the principle of change of circumstances, rather than the dissolution of the parties. ^[1]

Termination and unilateral cancellation

Unilateral rescission refers to the act of the rescission holder exercising the right of rescission to terminate the contract. It does not need the consent of the other party, as long as the right to terminate the contract to notify the other party of the intention to terminate the contract, or the people's court or arbitration agency to the other party, the effect of the termination of the contract can occur.

Dissolution by agreement refers to the act by which the two parties agree to terminate the contract through negotiation (Article 93, paragraph 1 of the Contract Law). It does not require the existence of the right to terminate, nor is the act of termination the exercise of the right to terminate. Chinese law provides for the termination of a contract as a type of contract termination. The theoretical explanation does not consider that the termination of a contract is completely different from the termination of a contract, but considers that it still has the same attributes as general termination, but also has its characteristics. The condition is that the two parties negotiate and agree without prejudice to the national interest and the public interest, and the dismissal is the parties' consensus.

Discharge by law and by agreement

If the conditions for the termination of a contract are directly stipulated by law, the termination is a statutory termination. In statutory termination, some conditions are based on conditions that apply to all contracts, while others are based only on conditions that apply to specific contracts. The former is a general statutory release, and the latter is called a special statutory release. Chinese law generally recognizes statutory terminations, not only for general statutory terminations, but also for special statutory terminations.

Dissolution by agreement refers to the dissolution by the parties in the form of a contract that one or both parties reserve the right to cancel. Among them, the agreement to retain the right to cancel is called the termination clause. The right of rescission can be reserved for one or both parties. The right of rescission can be agreed upon when the parties conclude the contract, or a contract for the right of rescission can be concluded later.

The contract law recognizes the rescission of the agreement (Article 93 (2) of the Contract Law), which is worthy of recognition. Because the rescission of the agreement is generated according to the parties' intention, it has greater flexibility in itself, and it can more accurately meet the needs of the parties in the face of complex matters. Although the parties' purpose of adopting the agreed termination is different, it is mainly considered that when various subjective and objective obstacles appear, they can be released from the constraints of the contract, leaving room for the abolition of the contract to protect their legitimate rights and interests. As a market entity, in order to adapt to the complex and changing market conditions, the parties need to stipulate the contract terms in more detail, more flexibility, and more strategic, which should include provisions to retain the right to cancel, so that they are in an active and advantageous position .

Termination of a valid contract

Statutory termination of contract

Party A: AA Company

Party B: (Employee ID :)

Party A and Party B signed a labor contract with or without a fixed term on the date of the date. Party B now proposes to cancel the labor contract through negotiation. After the parties A and B have reached consensus, they agree to terminate the labor contract and reach the following agreement:

1. The date of termination of the labor contract is: year, month, and year;

Party payer's economic compensation (default penalty) yuan;

three,;

This Agreement shall become effective after being signed (seal) by Party A and Party B and stamped with the special seal of Party A's labor contract;

5. This agreement is made in two copies, one for each party.

Party A: Party A of AA Company (Signature):

Legal representative or authorized agent:

Date

Contract Law of the People's Republic of China

Interpretation of the Supreme People's Court on Several Issues concerning the Application of the Contract Law of the People's Republic of China (2)

Interpretation of the Supreme People's Court on Several Issues Concerning the Specific Application of Law in the Trial of Disputes over Urban Housing Lease Contracts.