Article 450 of the Civil Code of the Russian Federation. Grounds for amendment and termination of the contract

Termination of the contract in court

First of all, to terminate the contract in court, it is necessary to send the counterparty a notice of the desire to terminate the contract (compliance with the mandatory pre-trial dispute resolution procedure).

For example, when terminating an open-ended lease agreement, each party has the right to cancel the agreement at any time by notifying the other party one month in advance, and when leasing real estate, three months in advance. The agreement may establish a different period for warning of termination of a lease agreement concluded for an indefinite period (clause 2 of Article 610 of the Civil Code of the Russian Federation).

Important!

It is possible to terminate a contract in court in cases of a significant violation of the contract by the other party or in other cases provided for by the contract or legislation (Article 450, clause 2 of Article 452 of the Civil Code of the Russian Federation, clause 1 of the Resolution of the Plenum of the Supreme Arbitration Court of the Russian Federation No. 35 of 06.06.2014 .).

What circumstances indicate a material breach of contract?

Such circumstances, for example, include amendments made to the legislation (Resolution of the Federal Antimonopoly Service of the North-Western District No. A56-39542/2009 dated 03/03/2011). At the same time, the courts do not classify as a significant violation of the contract: deterioration in the financial condition of a party to the contract (Resolution of the Presidium of the Supreme Arbitration Court of the Russian Federation No. 9600/10 of November 30, 2010), declaring the debtor bankrupt (Resolution of the Presidium of the Supreme Arbitration Court of the Russian Federation No. 6058/99 of January 25, 2000 ), inflation processes (Resolution of the Presidium of the Supreme Arbitration Court of the Russian Federation No. 1074/10 of April 13, 2010), financial crisis (Resolution of the Presidium of the Supreme Arbitration Court of the Russian Federation No. 4876/01 of August 7, 2001).

The violation may be recognized as significant by law or specified in the contract.

Let us note that if the reason for termination of the contract was a significant violation of the contract by one of the parties, then the other party has the right to demand compensation for losses caused by termination of the contract.

LEGAL EXAMINATION OF CONTRACTS

Here is a sample agreement on termination of a contract for the provision of consulting services.

AGREEMENT ON TERMINATION OF THE AGREEMENT

dated 02/06/2018 No. 45/12

The limited liability company "Lutik" represented by the general director Lyutikov Petr Petrovich, acting on the basis of the charter, called the Customer, on the one hand, and the limited liability company "Tsvetochek" represented by the general director Tsvetkov Alexander Alexandrovich, acting on the basis of the charter, called the Contractor, on the other hand, collectively referred to as the Parties, have entered into this agreement to terminate the contract:

1. The agreement for the provision of consulting services dated 02/06/2018 No. 45/12 is terminated from the moment the Parties sign this agreement.

2. The obligations of the Parties terminate from the moment of termination of this agreement.

3. The parties have the right to demand the return of what they performed under the contract before its termination.

4. This agreement is drawn up in two copies having equal legal
force, one copy for each of the Parties.
5. Addresses and bank details of the parties:

The greatest difficulty is caused by unilateral termination of the contract.
Thus, at the request of one of the parties, the contract can be terminated in court or out of court (clause 2 of article 450, article 450.1 of the Civil Code of the Russian Federation). In practice, one of the common options is to terminate a number of open-ended contracts (i.e. contracts concluded for an indefinite period). For example, termination of a lease agreement concluded for an indefinite period (clause 2 of Article 610 of the Civil Code of the Russian Federation).

What steps should the party initiating the termination of the contract take?

LEGAL SERVICES FOR LEGAL ENTITIES

Types of liability

In conclusion, let us pay attention to the types of liability of the parties for violation of the employment contract. When an employment contract is violated, we are talking primarily about the disciplinary liability of the employee and the administrative liability of the employer - depending on whose side the violation occurred.

Disciplinary liability is prescribed by Article 192 of the Labor Code of the Russian Federation and includes, in addition to dismissal, a reprimand and a reprimand. The procedure for applying disciplinary sanctions must be strictly observed, in particular, collecting evidence (as we discussed above), obtaining explanations from the employee, otherwise it can be successfully appealed to Rostrud, in courts and other similar authorities. The period for applying such a penalty is one month from the moment the violation was discovered and six months from the moment it was committed.

Administrative liability is regulated primarily by the Code of Administrative Offences, Article 5.27. The employer risks receiving a fine, depending on the type and severity of the violation of the employment contract and labor law.

In addition, in some cases, criminal liability may be applied if there has been theft or a serious violation of labor relations. For example, criminal liability of an employer who has been delaying wages for a long time and maliciously may arise under Art. 145.1 of the Criminal Code of the Russian Federation.

Criminal and administrative liability in this area is often accompanied by financial liability of one of the parties to the employment contract.

When is unilateral refusal to fulfill a contract possible?

Law No. 44-FZ allows several ways to terminate a government contract:

• by agreement of the parties;
• By the tribunal's decision;
• unilateral refusal in accordance with civil law.

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The decision to unilaterally refuse to fulfill a government contract can be made by both the customer and the supplier.

IMPORTANT. The possibility of unilateral termination of the contract must be stated in the contract itself. Otherwise, the parties will be able to terminate the relationship only through the court.

Contact the specialists

A well-drafted agreement will allow clients not only to remain within the legal framework, but also to avoid troubles when paying taxes.

Important!

The key to successful termination of a contract is an initially well-drafted contract. The concluded agreement must specify the grounds and procedures for terminating the agreement.

Drawing up a contract by a lawyer whose price is affordable will guarantee the absence of errors, coverage of all data and compliance with the law. With their knowledge, they compensate for the cost of the service: the drafting and execution of contracts will be of high quality, taking into account all the nuances.

Experts will take on the development of a new agreement

a, prolongation and termination of the “old” contract, taking into account the specifics of your business and wishes.

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Grounds for unilateral refusal

A contract can be terminated unilaterally only if there is a significant violation of the terms of the contract by the other party. This is stated in paragraph 1 of Article 450 of the Civil Code.

The customer may unilaterally terminate the contract if the supplier (contractor):

• provided incorrect information about yourself or the product;
• delivered low-quality goods or goods that do not meet the characteristics specified in the contract;
• violates the terms of delivery of goods;
• does not start work or completes it too slowly (for example, does not have time to complete school renovations by the beginning of the school year).

ATTENTION. Information about the supplier with whom the contract was terminated at the initiative of the customer will be included in the Register of Unfair Suppliers (RNP). In addition, the customer will require the supplier to compensate for the damage incurred.

For the supplier (contractor), significant violations of the terms of the contract on the part of the customer will be:

• unjustified refusal to accept goods (works, services);
• refusal to pay an advance or pay for the entire contract.

ATTENTION. Suppliers should not terminate a government contract on their own initiative simply because its terms have become unfavorable. Courts do not consider financial crises, changes in exchange rates, and increases in prices for goods to be circumstances that cannot be foreseen. If the supplier decides to complain about the terms of the contract after it has begun to perform it, then he will have virtually no chance of winning in court. This means that he will be recognized as evading the contract and will be included in the register of unscrupulous suppliers.

Check the company or individual entrepreneur against the register of unscrupulous suppliers