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Unilateral cancellation of the contract: legal advice. Art. 450.1 of the Civil Code

In law enforcement, the right to refusal to fulfill an agreement It has been used since 2015. Features of its implementation are enshrined in article 450.1 of the Civil Code. Consider the provisions of the norm in more detail. waiver of contract

General information

As Article 450.1 indicates, in order to exercise the right to refusal to fulfill an agreement one party must notify the other of its intention. Upon receipt of the appropriate notice, the agreement will be deemed terminated unless otherwise provided by the rules. Meanwhile, if the party to the transaction is entitled to unilateral refusal to fulfill a contract, confirms the validity of the agreement, then subsequently he will not be able to take advantage of his opportunity for the same circumstances.

Grounds

In article 450.1 of the Civil Code there is a reference to the 310 norm of the Code. It establishes cases where it is allowed waiver of contract. In this case, the corresponding intention should be stipulated by other provisions of the law. It seems that we are referring to rules allowing the exercise of the right to waiver of contract in case of violation by the counterparty of the terms of the transaction. Similar wording, for example, is present in Articles 723, 405, 328, etc. Cancellation of a service agreement it is allowed if the subject that grants them does not have special permission if its activity is subject to licensing without fail.

Design Features

How to fix withdrawal from the contract? Sample The main agreement between the parties may contain such a condition, among other essential points. In addition, participants in the transaction are entitled to draw up a separate document. In both cases, the procedure must be prescribed in accordance with which the agreement terminates. For example, if it is received from a party waiver of contract, it is canceled from the next day. At the same time, the legislation allows delaying the termination of the agreement. In some cases, the participants in the relationship use testative (vague) conditions as a basis for canceling the contract. The corresponding opportunity is fixed by articles 327.1 and 157 of the Civil Code. Parties can set automatic waiver of contract in case of occurrence of the circumstances agreed by them.  waiver of contract sample

Legal nature

Cancellation of a service contract The Plenum of the Sun qualified as a deal with a single participant. Accordingly, the rules governing the contestation of agreements and the recognition of their invalidity apply to it. Unilateral cancellation of the contract may become null and void if the conditions allowing it were not implemented (partially or fully).

Effects

The cancellation of the contract entails, as was said above, its termination. However, legislation also permits a change in the content of the agreement. This is the case if the party refuses part of the contract. Clause 3 of Article 450.1 of the Civil Code provides for the possibility of one of the parties to the transaction to claim damages upon termination of the agreement. In particular, this is allowed if the second party did not have the necessary permits to carry out its activities. In this order, for example, can be implemented cancellation of insurance contract. This activity is subject to licensing. If the organization provides services without a document, the client has the right to withdraw from the contract. Moreover, a person may not enter into a deal with such a company at all. Legislation enshrines the principle of freedom of execution of agreements.If the organization does not have the necessary documents for conducting activities, the client can express refusal to conclude a contract. In paragraph 4 of Article 450.1 of the Civil Code, the legislator draws attention to the obligation of individuals to comply with the principle of good faith. This requirement also applies to unilateral refusal. In the event of non-compliance with the requirements, it may be declared disputable or void.

Obstacles to the exercise of law

In paragraph 5 of Article 450.1 of the Code it is established that if the second party accepted execution from the first, then subsequently it will not be able to withdraw from the contract on the grounds that are connected with the obligations repaid. This is due to the fact that by such actions the participant confirms the validity of the agreement. According to experts, the norm enshrined in paragraph five is aimed at keeping the parties from inconsistent and contradictory behavior. It is worth saying that the confirmation of the party with the right to refuse, the desire to keep the contract in force, can be expressed not only in action, but also inaction. An example of the first is the adoption of improper fulfillment of the terms of a transaction. Repeated such performance cannot be used as a condition for canceling the contract. An example of inaction is the situation when the creditor, waiting for the repayment of the obligation, missed the deadline for the exercise of his right. withdrawal of a service contract

Procedure adjustments

It is worth noting that today in the field of entrepreneurship, the amended rules for the refusal of the customer from the agreement on the provision of services for compensation are applied. The legislator tried to adjust the procedure in the direction of balancing the interests of both parties to the transaction. From the general rules governing the ability of the customer to unilaterally express an unmotivated refusal to agree with reimbursement in favor of the contractor only the costs actually incurred by him, an exception has appeared. Currently, it can be determined by the need to comply with the specified period and payment of compensation to the entity performing the work. This norm, meanwhile, does not exclude the possibility of the parties agreeing on a different sequence of consequences. For example, it can be full compensation for losses on the part of both the customer and the contractor. Participants may also provide for rules stipulated by the need for one party to pay a certain amount in favor of the other. Such a condition, as a rule, is applied in contracts, the execution of which is connected with the conduct of business by both counterparties.

Negative practice

It is worth saying that earlier the procedures for the settlement of disputes related to unilateral refusal were based on the provisions of Article 782 of the Civil Code. As a result, a rather stable practice of applying this peremptory norm was formed. 782 article does not allow any discretion of the parties in the framework of the contract for the provision of services of a paid nature. The legislation does not provide any formalities or additional conditions for one of the participants to exit the transaction on their own initiative. Accordingly, in the agreement, the parties did not have the right to establish the possibility of its termination at the end of the agreed period from the date of the notification. The Presidium of the Supreme Arbitration Court in one of its Resolutions indicated that, within the meaning of Article 782, the cancellation of the contract for the provision of services is allowed at any time. This may be the moment before the start of its provision or during the implementation of the counterparty of the agreed activities. Due to the fact that the possibility of declaring a refusal is established imperatively in norm 782, it cannot be limited by agreement of the parties. If the participants established any conditions, they will be declared invalid. In this case, the provisions of 168 and 422 articles of the Civil Code will be used. refusal to conclude a contract

Accounting for termination clauses

Today, the interpretation of article 782 is slightly modified.Due to this, a balance of interests of both parties to the transaction was achieved. In particular, the parties are given the opportunity to stipulate in advance all the possible consequences of terminating the contract. Participants, for example, can agree on compensation in a fixed amount or in percent, which is charged on the cost of services for the period from the moment of receipt of the notice and until the expiration date of the agreement established initially. A similar approach can be applied in the case of a guarantee. Within the framework of such an agreement, the attorney carries out legal actions in the interests and on behalf of the principal. The latter has the right to withdraw from this transaction on his own initiative on the basis of the provisions of 978 of the Civil Code norm.

Refusal to conclude an agreement

The legislation provides for the possibility of the subject not to agree to the terms of the transaction and, accordingly, not to execute it. This right reflects the principle of freedom of contractual relations. The subject can realize it both at the stage of negotiations and directly during the execution of the transaction.

Limitations

The legislation has established several cases when it is impossible to refuse to conclude a contract. These include agreements:

  1. With the winning bidder.
  2. Public character.
  3. Before which a preliminary agreement is drawn up.
  4. Concluded after the sending of irrevocable offers, including as an option under Article 429.2 of the Civil Code. unilateral refusal to fulfill a contract

In most cases, the person who does not want to complete the transaction, it is enough not to respond to the offer. But sometimes, according to the norms, the subject must issue his refusal documented. Such cases include:

  1. The presence of a person obligated to conclude an agreement, the grounds for refusal to the consumer.
  2. Execution of delivery under the municipal / state contract.

Letter

As mentioned above, in a number of cases, the entity must document its refusal. The law does not regulate the clear form of such a letter. Accordingly, the general rules apply to this document. In particular, a letter drawn up on the internal letterhead of the enterprise must be certified by the signature of the director or employee authorized by him. The document must include:

  1. The name of the subject to which it is addressed, or F. I. O. (if it is a citizen), address of location / residence, contact details.
  2. Outgoing act number, date of registration in the journal.
  3. Title of the document.

The text recommends the following:

  1. Initial terms of the transaction, offers from the addressee.
  2. Disclaimer In this case, its reasons should be clearly indicated.

It is also advisable to provide references to norms that allow refusal to sign a contract. unilateral cancellation of the contract

Municipal / state order

It was said above that it is impossible to refuse to conclude a contract according to general rules. Meanwhile, in some cases this prohibition does not apply. Federal Law No. 44 admits refusal to complete a transaction with a tender winner. This opportunity can be used by the customer if:

  1. The procurement participant does not comply with regulatory requirements.
  2. There are circumstances set forth in article 31 of the Federal Law No. 44 (paragraph 10).
  3. Inaccurate information was provided regarding the winner's compliance with established requirements.

In all other cases, the customer’s refusal is considered unlawful.

Protocol

The consequences of the customer’s refusal are regulated by paragraph 11 of Article 31 of the Federal Law No. 44. In accordance with the provisions, the subject no later than one day after the identification of the above circumstances, must post on the Internet a protocol. This document must be sent to the second side within two days. The protocol must contain information:

  1. About the place and time of registration.
  2. Details of the bidder, from the conclusion of the contract with which the customer refused.
  3. Motivated reasons for the decision.

If the procurement participant expresses a desire not to draw up a contract, then adverse consequences may occur for it. In particular, he will not receive the security payment that he made during the application process.An exception to this rule is competitive bidding, which is held in two stages. After the first round, participants have the right to refuse the next without loss. withdrawal of a service agreement

Public agreement

The essence of such an agreement is that it must be concluded with each person who applies. At the same time, the obligated entity may express a desire not to complete the transaction on the grounds that do not allow the agreed work to be carried out. The reasons may be the lack of technical ability to provide rail transportation, connect to the water supply. Meanwhile, it is worth saying that this basis is far from an excuse. The fact is that industry legislation establishes clear criteria for establishing a lack of technical ability. In addition, the refusal is admitted by special rules that do not regulate civil relations. They focus on customer abuse.


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