What are the legal consequences of the termination of the contract

In life, after you sign a contract, there will be various situations that lead to the inability to perform the contract or the invalidity of the contract. According to the law, when certain conditions are met, the contract can not only be deemed invalid, but also can be revoked in some cases. The right of revocation refers to the right of the person with the right of revocation to revoke the established contract by his unilateral expression of intention due to the lack of certain effective conditions of the contract, that is, a unilateral right to protect his legitimate rights and interests after signing the contract due to the existence of major misunderstanding, fraud, coercion, taking advantage of the danger of others, etc.

But what exactly can be achieved by exercising this right? According to the relevant provisions of the Contract Law, the contract is not legally binding from the beginning after it is revoked, and the property obtained as a result of the contract shall be returned, and if it cannot be returned or there is no need to return it, it shall be compensated at a discount, and the party at fault shall compensate the other party for the losses suffered thereby, and if both parties are at fault, each shall bear the corresponding liability. Of course, the partial invalidity of the contract does not affect the validity of the other clauses, and the independent clauses in the contract relating to dispute resolution methods remain valid.

Legal basis: Article 56 of the Contract Law of the People's Republic of China An invalid contract or a revoked contract is not legally binding from the beginning. If part of the contract is invalid and does not affect the validity of the other parts, the other parts shall remain valid.

Article 57 of the Contract Law of the People's Republic of China If a contract is invalid, revoked or terminated, it shall not affect the validity of the independent clauses on dispute resolution methods in the contract.

Hello, according to your question, to bring you the answer:

According to the relevant provisions of the Civil Code, first, if the contract has not been performed after the termination of the contract, the performance shall be terminated, and if it has been performed, according to the performance and the nature of the contract, the parties may request restoration of the original state or take other remedial measures, and have the right to claim compensation for losses. In the Civil Procedure Law, if a party requests to terminate a contract, in order to take other remedial measures and compensate for losses in accordance with the request of the other party, the court shall ask the parties whether the public has increased the litigation claim.

Second: if the contract is terminated due to breach of contract, the parties may request the breaching party to bear the liability for breach of contract, unless otherwise agreed by the parties, and the non-breaching party may require the breaching party to compensate for the loss of available benefits, and third: after the termination of the main contract, the guarantor shall still bear the civil liability to the debtor, unless otherwise agreed in the guarantee contract.

Article 97 of the Contract Law stipulates that after the contract is terminated, if it has not been performed, the performance shall be terminated; If it has already been performed, the parties may request restitution or other remedial measures according to the performance and the nature of the contract, and have the right to claim compensation for losses.

According to the above provisions, two effects of contract termination are established: one is to take effect in the future, that is, to terminate performance; Second, the termination of the contract can have retroactive effect (i.e., give rise to the legal consequences of restitution).

1. Basis for processing.

The issue of how to deal with claims and debts after the termination of the contract is more complicated. Generally speaking, after the contract is terminated, if it has not been performed, the performance shall be terminated; If it has already been performed, the parties may request restitution, other remedial measures, and compensation for losses according to the performance and nature of the contract. Performance refers to the performance status of the contract after the termination of the contract and the specific circumstances of both parties.

The nature of the contract refers to what type of contract, whether it is a sales contract, a lease contract or a service contract. Contracts are handled differently depending on their nature.

II. Legal Consequences.

1. Restitution refers to the restoration to the state before the contract. If the original thing exists at the time of restoration, the original thing shall be returned, and if the original thing does not exist, if the original thing is a kind of thing, the same kind of thing may be returned. Reinstatement also includes:

1) the fruits of the return of property;

2) pay the necessary expenses incurred by one party to maintain the property during the period of possession of the property;

3) Necessary expenses incurred for the return of property.

2. Other remedial measures, including measures to repair and replace, remake, reduce price, pay liquidated damages, and compensate for losses.

3. Compensation for losses.

According to the laws of China, the scope of damages after the termination of the contract can be determined in the following ways:

1) If the contract is terminated by agreement, and the parties are exempted from the liability of the other party for damages in the agreement, they shall not claim compensation again after the agreement takes effect;

2) If the contract is terminated due to force majeure, it shall not be liable for damages. However, after the occurrence of force majeure, if remedial measures should be taken to reduce the expansion of losses but fail to do so, the company shall be liable for compensation for the expanded losses;

3) If the rescission only takes effect in the future, the breaching party shall compensate the other party for the losses suffered by the other party due to the breach of contract; If the rescission is retroactive, the breaching party shall pay the expenses incurred by the injured party in connection with the conclusion of the contract, the preparation for the performance of the contract and the restitution;

4) The amount of damages shall include the benefits that can be obtained after the performance of the contract, but shall not exceed the losses that may be caused by the breach of the contract that the party in breach of the contract foresaw or should have foreseen at the time of entering into the contract.

What are the legal consequences of unilateral termination of a contract?

The legal consequences after the termination of the contract include that the unperformed contract is no longer performed, and it is necessary to have a liability for breach of contract, and the liability for breach of contract shall be borne. Chinese law recognizes the coexistence of contract termination and damages. For example, if the termination of the contract has already occurred, or if one of the parties fails to perform and it is difficult to achieve the purpose of the contract, it will be necessary to bear certain damages after the termination.

Legal analysisAfter the termination of the contract, the right to claim compensation for damages. The reasons for this provision are: 1. If the rescission of the contract does not apply retroactively, if the unperformed contract is only not performed, no claim for damages can be claimed, then the damage caused by the failure of the other party to perform the contract or improper performance of the contract cannot be remedied.

2. If the termination of the contract is retroactive, if only the original state is restored, the expenses incurred by the non-breaching party in entering into the contract, the manpower and material resources incurred in preparing for the performance of the contract, and the expenses incurred to restore the original state will not be compensated. 3. In the case of termination of the contract by agreement, if one party suffers losses due to the termination of the contract, if the party who makes the profit does not compensate the other party for the damage suffered by the termination of the contract, it is not in accordance with the principle of fairness. The detailed rules for the implementation of the contract for the carriage of goods by water provide:

Before the goods are shipped, the carrier or the shipper may terminate the contract with the consent of the other party. If the carrier proposes to terminate the contract, it shall refund the transportation costs received and pay the shipper the short-distance handling costs of the goods into the port. If the shipper proposes to terminate the contract, the port charges and vessel standby charges incurred by the carrier shall be payable. "4. In the case that the contract cannot be performed due to the fault of the third party and the contract is terminated, the creditor cannot directly claim the right of disturbance against the third party, and if the debtor does not bear the liability for the termination of the contract, he either does not claim the right to the third party to make up for the loss of the creditor, or he exclusively enjoys the benefits obtained after claiming the right, so that the interests of the creditor are not protected.

Therefore, after the termination of the contract, if the fault of one party causes damage to the other party, the party at fault shall compensate the injured party for the damage, and it cannot be exempted from its liability for compensation due to the termination of the contract.

Legal basisArticle 566 of the Civil Code of the People's Republic of China: After the contract is terminated, if it has not been performed, the performance shall be terminated; If it has already been performed, the parties may request restitution or other remedial measures according to the performance and the nature of the contract, and have the right to claim compensation for losses. If the contract is terminated due to breach of contract, the person with the right to terminate may request the breaching party to bear the liability for breach of contract, unless otherwise agreed by the parties. After the termination of the main contract, the guarantor shall still bear the guarantee liability for the civil liability to the debtor, unless otherwise agreed in the guarantee contract.

The termination of contractual rights and obligations occurs after the termination of the contract, but the question of whether the contract that has been performed has retroactive effect mainly depends on the specific circumstances.1. One of the legal consequences of the termination of the contract is: for the termination of performance that has not been performed2, the second legal consequence of the termination of the contract is that the termination of the contract has retroactive effect for those who have performed the round of respect, but the specific consequences of the termination are mainly resolved in accordance with the agreed terms of the parties in the contract.

In practice, in the drafting and revision of the contract, special attention is paid to the agreement on the consequences of the suspension of contractual rights and obligations, which is also related to the allocation and assumption of liability for breach of contract.

Under normal circumstances, after the contract is terminated, the unperformed part will not be performed; If it has been performed, according to the performance and the nature of the contract, one party may require the other party to restore the original state, return the original goods or take other remedial measures, and if it involves the breach of contract by the party, it also has the right to require the breaching party to bear the liability for breach of contract such as paying liquidated damages and compensating for losses. Of course, the contract is terminated by the parties through consultation, and the parties can handle it in accordance with the settlement plan determined through negotiation. Article 566 of the Civil Code provides that if the contract has not been performed after the termination of the contract, the performance shall be terminated; If it has already been performed, the parties may request restitution or other remedial measures according to the performance and the nature of the contract, and have the right to claim compensation for losses.

If the contract is terminated due to breach of contract, the person with the right to terminate may request the breaching party to bear the liability for breach of contract, unless otherwise agreed by the parties. After the termination of the main contract, the guarantor shall still bear the guarantee liability for the civil liability to the debtor, unless otherwise agreed in the guarantee contract.

Legal analysis: the termination of contractual rights and obligations occurs after the contract is terminated, but the question of whether Li Kuan has retroactive effect on the contract that has been performed mainly depends on the specific circumstances.1. One of the legal consequences of the termination of the contract is that the termination of the performance of the contract has not yet been performed 2. The second legal consequence of the termination of the contract is:

For those who have already been performed, the termination of the contract is retroactive, but the specific consequences of termination are mainly resolved in accordance with the agreed terms of the parties in the contract. In practice, in the drafting and revision of contracts, special attention is paid to the stipulation of the consequences of the suspension of contractual rights and obligations, which is also related to the allocation and assumption of liability for breach of contract.

Legal basis: Article 97 of the Contract Law of the People's Republic of China After the contract is terminated, if the performance has not been performed, and the performance is terminated, the parties may request restoration of the original state, take other remedial measures, and have the right to claim compensation for losses according to the performance and nature of the contract.