Unilateral termination of the contract, you should know some points

Our life is so fleeting and changeable that almost nothing permanent can happen. It does not matter at all whether it concerns the ordinary life or work of an enterprise or firm. If we talk about companies, then in them most clearly you can see how all is ambiguous.

As a result of the performance of its activities, any firm or organization faces a contractual relationship. At the same time, they can, as a contract, and dissolve them. Often, referring to certain circumstances, the contract is terminated unilaterally. In practice, this type of termination is the most common.

Accordingly, in itself the termination or amendment of the terms of the contract must occur on the basis of norms and rules provided for by law. In Art. 452 ГК (item 1) the main moments of cancellation or change of the contract are registered. However, in this article rules are prescribed, which only apply if 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 must begin with a proposal by one party to terminate or change the contract to the other party. In practice, the interested party is obliged to send the other party, with whom the contract was concluded, to terminate or change the existing agreement. In turn, the second party is obliged, within the statutory time (or stipulated in the contract) to respond to the proposal. This type of termination can also be noted as the cancellation of the contract unilaterally, but with the condition that the second party agrees to the conditions set.

In the event that it is not possible to reach a peaceful solution to this issue, the interested party has the right to apply to the court. However, according to art. 422 GK (paragraph 2), the 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 it is possible to terminate only that contract, the obligations under which have not yet been fulfilled. This is explained by the fact that properly executed terms of the contract, terminate the contract itself under Art. 408 Civil Code of the Russian Federation. Accordingly, the cancellation of the contract unilaterally can not be performed due to the absence of the agreement itself.

Given that a change in the terms of a contract or cancellation thereof can only be carried out under the 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 contracts and agreements, including the supply contract. In this case, the termination of the supply contract is governed by Art. 523 CC. In accordance with this article, the termination of the contract unilaterally is possible in the event that one of the parties violates the terms of the agreement. One of the reasons for the cancellation of the supply contract may be the delivery of a product that is of inadequate quality, with the proviso that the existing shortcomings can not be eliminated. If we talk about the duties of the buyer, in this case, a violation can be considered repeated violations relating to the timing of payment for the goods.

With an advance settlement system when concluding contracts, there may be problems with their further termination. Return of advance payment upon cancellation of the contract is carried out in the case when absolutely nothing is done on the part of the contractor, but the advance has already been received. At the same time, if some part of the work is still done and its cost exceeds the amount of the advance, the executor has the right to demand payment of costs.