What are the circumstances under which the right to terminate the contract is extinguished?

A contract is an agreement entered into by both parties in order to clarify their respective rights and obligations, and once the contract is concluded, both parties should abide by and perform it. However, if Party B wants to terminate the contract at that time, what conditions should be met? According to the law, a contract can be terminated by mutual agreement between the parties, i.e., by mutual agreement.

It is also possible to clearly stipulate the conditions for the termination of the contract when signing the contract, and when the conditions are fulfilled, that is, the termination of the contract. Then, if the two parties cannot reach an agreement through negotiation without agreeing on the termination conditions in advance, the answer is no. Because China's contract law also stipulates the statutory circumstances of termination.

The parties may terminate the contract under any of the following circumstances: first, the purpose of the contract cannot be achieved due to force majeure; Second, before the expiration of the performance period, one of the parties clearly states or shows by its own conduct that it will not perform the main obligation; The third party delays the performance of the main debt and fails to perform it within a reasonable period of time after being reminded; Fourth, one of the parties delays the performance of its obligations or has other breaches of contract, resulting in the inability to achieve the purpose of the contract; Fifth, other circumstances provided for by law. Legal basis:

Article 94 of the Contract Law of the People's Republic of China The parties may terminate the contract under any of the following circumstances: (1) the purpose of the contract cannot be achieved due to force majeure; (2) Before the expiration of the performance period, one of the parties clearly expresses or shows by its own conduct that it will not perform the main obligation; (3) One of the parties delays the performance of the main debt and fails to perform it within a reasonable period of time after being reminded; (4) One of the parties delays the performance of its obligations or has other breaches of contract, resulting in the inability to achieve the purpose of the contract; (5) Other circumstances provided for by law.

In judging whether the right to terminate the contract has been extinguished, it is mainly analyzed from the following four situations:

1. If both parties have agreed on a time limit for exercising the right to terminate the contract, if the right holder fails to exercise it upon the expiration of the time limit, the right of termination shall be extinguished;

2. If the two parties have not agreed on the time limit for exercising the right of rescission, and the right holder fails to exercise the right of rescission within a reasonable period of time after being urged by the other party, the right of rescission shall be extinguished;

3. If the two parties have not agreed on the time limit for exercising the right of rescission, and the other party has not demanded it, and the right holder fails to claim the right of rescission within a reasonable period of time, the right of rescission shall be extinguished, and the reasonable period shall generally be within one year;

4. If the lessor has the right to terminate the contract due to the failure to pay the rent on time, but the lessee expresses the payment of the later rent and the lessor agrees, the right of termination shall be extinguished.

A right is fulfilled by an assertion and extinguished by a waiver, and the same is true of the right to rescind a contract. Article 95 of the Contract Law stipulates that: "If the law provides or the parties agree on a time limit for exercising the right of rescission, and the party fails to exercise it upon the expiration of the time limit, the right shall be extinguished; If the law does not stipulate or the parties have not agreed on a time limit for exercising the right of rescission, and the right is not exercised within a reasonable period of time after being urged by the other party, the right shall be extinguished."

In practice, it is difficult to grasp that the law does not stipulate the time limit for exercising the right to terminate the lease contract, and when the right holder neglects to exercise its rights, it will lead to the rights being in a state of uncertainty for a long time. This long-term neglect of the exercise of rights is also a case of extinguishment of rights.

The second paragraph of Article 15 of the Interpretation of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trial of Cases Involving Disputes over Contracts for the Sale and Purchase of Commercial Housing stipulates that: "If there is no provision in the law or the parties have not agreed, the reasonable period for exercising the right of rescission shall be three months after being urged by the other party (the party in breach of the contract). If the other party does not demand, the right of rescission shall be exercised within one year from the date of occurrence of the right of rescission; If it is not exercised within the time limit, the right of rescission shall be extinguished".

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

In accordance with the relevant provisions of the Civil Code.

First: the agreement is terminated.

Article 562:The parties may terminate the contract if they reach a consensus through consultation.

The parties may agree on the grounds for one party to terminate the contract. The person who has the right to terminate the contract may terminate the contract if the cause of termination occurs.

Second: Statutory rescission.

Article 563:The parties may terminate the contract under any of the following circumstances:

1) The purpose of the contract cannot be achieved due to force majeure;

2) Before the expiration of the performance period, one of the parties clearly indicates or shows by its own conduct that it will not perform the main debt;

(3) One of the parties delays the performance of the main debt and fails to perform it within a reasonable period of time after being reminded;

(4) One of the parties delays the performance of its obligations or has other breaches of contract, resulting in the inability to achieve the purpose of the contract;

(5) Other circumstances provided for by law.

In the case of an indefinite contract with the content of a continuously performed debt, the parties may terminate the contract at any time, provided that they notify the other party before a reasonable period of time.

Article 564:Where the law provides for a period for exercising the right of rescission or the parties agree on a time limit, and the party does not exercise it at the end of the period, that right is extinguished.

If the law does not stipulate or the parties have not agreed on a time limit for exercising the right of rescission, and the right of rescission is not exercised within one year from the date on which the person with the right of rescission knows or should know the reason for rescission, or does not exercise it within a reasonable period of time after being urged by the other party, the right shall be extinguished.

The circumstances in which the right to terminate the contract is extinguished are mainly justified by legal provisions or agreements of the parties; If there is no provision or agreement, the right of rescission shall be extinguished if it is not exercised within one year from the date on which the person who knows or should know the reason for rescission, or if it is not exercised within a reasonable period of time after the other party urges it.

Legal basis: Civil Code

Article 564.

Where the law provides or the parties agree on a time limit for exercising the right of rescission, and the party does not exercise it upon the expiration of the time limit for cancellation and merger, the right shall be extinguished.

If the law does not stipulate or the parties have not agreed on a time limit for exercising the right of rescission, and the right of rescission is not exercised within one year from the date on which the person with the right of rescission knows or should have known the reasons for rescission, or does not exercise it within a reasonable period of time after being urged by the other party, the right shall be extinguished.

The circumstances under which the right to terminate a contract is extinguished mainly as provided by law or agreed by the parties; Where there is no provision or agreement, the right to terminate is extinguished if it is not exercised within one year from the date on which the person with the right to terminate knows or should have known the reasons for the termination, or does not exercise it within a reasonable period of time after the other party has urged it. Laws and regulations: Article 564 of the Civil Code of the People's Republic of China provides for the right of rescission if the law provides or the parties agree on a time limit for exercising the right of rescission, and the party fails to exercise it at the end of the time limit, the right shall be extinguished.

If the law does not stipulate or the parties have not agreed on a time limit for exercising the right of rescission, and the right of rescission is not exercised within one year from the date on which the person with the right of rescission knows or should know the reason for the rescission, or does not exercise it within a reasonable period of time after being urged by the other party, the right shall be extinguished.