Termination of a Contract



Termination of a Contract

Introduction

By law, the termination is the breaking of the effects of a contract to provide service from a given date without canceling what has already been executed. It is unlike resolution that removes the effects of the contract at its origin. There are three types of termination: termination by agreement, termination of right, and legal termination. We distinguish the termination of the resolution in that the resolution applies to the contract indenture as the sale of property or obligations of parties who are placed in the position where they were before the meeting of minds while termination stops the effects of successive contracts with maturities of obligations whose execution is continuous, thus excluding retroactivity, which in this case would void the contract.

Types of Termination of a contract

Voluntary

It occurs when the parties, with a new consensus, put an end to the consequences of the obligatory relation between them. Sometimes, it is the same contract that establishes the right of withdrawal in favor of one or each of the shares. The contract terminates following the unilateral manifestation of the will that draws recognition from front agreement. Other times, it is the law that grants the right of unilateral withdrawal as such. In contracts of indefinite duration, it shall be allowed for the dissolution of the relationship of one-sided termination (Glanville, 2002).

Legal

It is provided solely for the corresponding performance contracts. The grounds for termination occur during the life of the report required in the three cases under the Civil Code or in the failure of the counterparty.

Termination by mutual agreement

Normally, proceeding to terminate the contract by mutual agreement is easy. This is one of the most easiest and convenient ways of terminating of a contract which usually does not require to go to the court.

Termination by unilateral declaration of intent of a party

These assumptions are termination regulated by law and can, in this limit, subject to contractual adjustments. Thus, the law provides organized and the right of cancellation by unilateral declaration for:

- The open-ended contracts

- Some fixed-term contracts based on a relationship of trust such a mandate

- The construction contract (option available only for the benefit of the client).

In these situations, it is often very useful to agree upon the development of contract terms and conditions of release that may occur by a termination clause detail (Ewan, 2005).

Termination by one party

This termination is the fact that one party does not comply or poorly comply with its contractual obligations. When the debtor's conduct seriously undermines the interests of his co-contractor, the law recognizes an obligation to the creditor of a unilateral ability to terminate "at his peril." The exercise of this option could be to ex post control on the part of judges and lead to the allocation of damages if the creditor does not provide satisfactory evidence to the judge that the termination was justified.

The termination can ask for faults occurring at the time of the agreement, if the contract is signed:

When one party or ...