It is difficult to imagine the modern world without contractual relations. With the help of agreements, citizens buy and sell, perform work and provide services, take loans, transfer property for rent, etc. In order to fulfill obligations in a timely manner, it is extremely important to correctly draw up a contract. But sometimes circumstances change, and there is a need to terminate the contract or agreement. And then the question becomes relevant: how to terminate the contract?
Change or termination?
Sometimes situations arise when the contract is already losing its relevance. For example, the company no longer needs to purchase a certain product or the terms of the agreement simply became unprofitable. What, then, to do with the contract? Is there any way to terminate it?
The Civil Code states that termination of the contract is possible in two cases:
- by mutual agreement of the parties;
- at the initiative of one of the participants in the transaction.
How to terminate the contract if both parties agree? You can cancel the agreement by joint agreement of the parties at any time. If desired, the provisions of the contract can be changed. However, if the agreement is in writing, the changes are made in writing. If the transaction has been notarized, then the notary must certify the amendment or termination of the contract. Contracts subject to state registration, when changing conditions or canceling, respectively, must also be registered.
Amendments or termination of the transaction are executed by concluding a separate agreement or by exchanging letters.
Unilateral expression of will
Is it possible to terminate the contract unilaterally? One of the participants can refuse the agreement only in some cases.
Usually, such an opportunity is prescribed directly in the contract. True, such cases are expressly provided for by law.
If the opportunity to terminate the obligations of one of the parties is not specified either in the law or in the agreement, then you can try to terminate the contract only through the court.
It is also worth noting that one of the participants can declare the agreement canceled only if the terms of the contract have not yet been fully implemented. And this means that if the counterparty fulfilled its part of the obligations, then most likely it will not work to terminate the contract. In such a situation, the court will have to prove that at the time of your withdrawal from the agreement, the terms of the contract were not yet fulfilled.
Action algorithm
In order to terminate the contract unilaterally, it is necessary to send another counterparty a notice drawn up in any form. In the letter it is also important to indicate the deadline for the response. If the participant agrees to cancel the agreement, then the contract will be considered terminated from the moment of receipt of consent.
If the company wants to cancel the contract, but it does not have the authority to unilaterally cancel, and the other participant does not make concessions, then it will be necessary to solve the problem through the court. In a court of law, one can only hope for success if the terms of the contract were seriously violated or the circumstances in which the contract was concluded have changed significantly. In addition, before you terminate the contract, you need to collect evidence that will indicate the dishonesty of the second party to the agreement.
Features with sales contracts
As for this type of transaction, it can also be canceled by mutual agreement of the counterparties, at the initiative of one of the parties or through a court. Such a deal can only be canceled in case of very serious violations. For example, the seller did not transfer the property or the buyer did not pay if the deadlines were violated, etc.
At the same time, do not confuse the procedure for declaring a contract of sale invalid with its termination. Indeed, if, for example, the seller provided “fake” documents or one of the participants was intoxicated, in a state of mental disorder at the conclusion of the transaction, then such an operation can be considered invalid. And if you need to terminate the contract of sale, then you need to prove the facts of violation of the terms of the contract by the other party.
If, for example, a contract of sale of real estate is canceled, then you need to contact the notary who originally executed the transaction. The notary will develop a separate agreement to terminate the transaction and attach it to the original contract.
A party that has expressed a desire to terminate the agreement must first conduct a pre-trial settlement. A letter is sent to another participant and a deadline is set for his reply. If the party refuses or simply ignores the letter, file a lawsuit in court.
How to terminate a lease?
If you want to terminate the lease agreement, and you are a tenant, you can refer to the following reasons:
- the landlord does not adhere to the rules of the contract, namely, does not transfer the thing to use to the lessee (for example, an apartment);
- the property that was handed over to you does not meet the characteristics specified in the contract;
- the owner does not make repairs that he undertook to do according to the terms of the contract;
- property in unsuitable condition through the fault of its owner.
The landlord may terminate the contract on the following grounds:
- the tenant uses the property in violation of the provisions of the contract (for example, makes noise after 23.00, listens to music very loudly);
- the user spoils property, repairs, housing, violates its integrity;
- if the tenant does not pay the rent for more than two consecutive months.
How to terminate the lease for other reasons? In this case, the termination of the employment agreement is possible only if the document spells out some special conditions that have been violated by one of the parties.
Arbitrage practice
As already indicated, the parties can decide to terminate the transaction by mutual agreement and in pre-trial order. But if one of the parties refuses this, and there are no other grounds for canceling the contract, then it is necessary to resolve this issue in court. When legal entities participate in the dispute, the case will be decided in the arbitration court.
If disagreements arose between citizens, the parties may appeal to the district court. In addition, in the event of a breakdown in contractual relations, the parties have the authority to demand damages. The tenant, for example, can recover money for damage to property or for its use if the tenant evaded payment.
However, sometimes even the smallest flaws can change everything. An example of such a very unexpected solution to a dispute over lease termination The following case may serve. The landlord filed a lawsuit with the arbitrator, citing the fact that the tenant substantially violates the provisions of the law.
The plaintiff indicated that he had not paid the rent for several months, did not fulfill the obligation to repair the premises, and entered into a sublease without the consent of the landlord. During the trial, the defendant filed evidence that he had completely eliminated the violations indicated by the plaintiff. In addition, the landlord forgot to give the tenant a written notice of the need to eliminate the violations within a reasonable time. This was the reason for the refusal to satisfy the claim.
Relations with the Bank
Making a loan agreement is often quite simple, and this leads to various problems associated with repayments. Many entrepreneurial citizens in this case wonder how to terminate the loan agreement?
Note that it is really possible to cancel such a deal, but only in exceptional cases. And one client’s desire, of course, will not be enough. The Civil Code provides for several options when you can cancel a contract with a credit institution.
So, how to terminate the contract with the bank? Naturally, the most acceptable option for the borrower is to break the contractual relationship by mutual agreement. If the bank does not object to this, then no problems will arise. It is enough for the parties to sign a written agreement, which indicates the amount of the remaining debt, the conditions for its return and other various details.
Receiving rejection
But such a favorable outcome is extremely rare, since it is simply unprofitable to terminate a loan agreement for a banking institution, as a rule, these are losses or at least loss of reputation.
Therefore, if you failed to get a voluntary refusal from a financial organization, you cannot avoid a court. To do this, we draw up a lawsuit and pay a state duty (about 200 rubles).
Grounds for canceling a loan agreement
The law provides for the termination of a loan agreement in such cases:
- loss of collateral (a house bought with credit funds burned out; a car borrowed from a car got into an accident);
- early repayment of the loan was denied to the client (although the contract provides for such an opportunity).
Lender Initiative
The bank may also request termination of the agreement. How to terminate a loan agreement if the initiator is a bank? For example, a financial institution may sue a borrower if the allocated money was spent for other purposes (the funds were taken for education, but spent on the purchase of a car, etc.). Another possible reason is that payments were made for a greater or lesser amount than specified in the contract.
If you intend to terminate the loan agreement, you must send a letter to the bank with the appropriate request. If after 30 days you are denied, you can contact the court. In addition, before you terminate the contract with the bank, re-read the contents of this document. Perhaps it provides for cases of unilateral cancellation of the agreement.
Result of cancellation of the contract
It should be noted that the consequences of the termination of the agreement (and not only on loans) will not be as rosy as many assume. The borrower will still be required to repay the remainder of the debt, as well as to fulfill other costs associated with servicing the loan. Sometimes, for the early termination of contractual relations, even a fine may be imposed (if this rule is specified in the agreement). Therefore, consider all these points. How to terminate the contract, you now know. To take advantage of this opportunity or not, the matter is purely personal.
