Under what circumstances can an agreement/contract be terminated? (Video content)
- 捍理说法栏目
- 10 hours ago
- 2 min read
(Machine Translated from Chinese)
Termination of a contract refers to the termination of contractual obligations under a specific situation, the cancellation of the contract, and the return to the status quo before the contract was signed. The legal termination of a contract may occur in one of the following four situations:
Rescission of a contract due to issues with the contract content: There are strict requirements that must be met. For example, the contract itself must contain a major error that is seriously inconsistent with the pre-agreed terms; the party seeking rescission must prove a clear misunderstanding of the contract terms; or the contract was signed under false information, resulting in fraud at the time of signing.
Mutual Agreement: When both parties foresee future losses from contract performance or believe there is a crisis of confidence in the contract's execution, they can negotiate and mutually agree to terminate the contract. In this case, both parties can reach an agreement and terminate the contract accordingly.
Force majeure: When force majeure occurs, such as a natural disaster (tsunami, earthquake, etc.), making it impossible to continue to perform the contract, the contract may be terminated. Generally, a force majeure clause should be included in the signed contract.
Termination due to breach of contract: When one party to a contract commits a material breach of contract, the other party has the right to terminate the contract early. In the case of a general breach of contract, the non-breaching party has the right to seek compensation from the breaching party, but may not be able to terminate the contract directly and must continue to perform the contract.
It is important to note that regardless of whether the termination of a contract involves court intervention or not, professional legal advice and assistance can ensure that the method and process of contract termination comply with legal requirements and can reasonably and legally protect the rights and interests of all parties to the contract.
If you have specific questions regarding corporate law or any type of contract-related issues and need professional assistance, please contact us at Henderson & Lee Law Corporation to schedule a consultation.
