How the Agreement is Terminated, Rescinded and Terminated

Legal analysis: 1. The conditions applicable to the two are not the same.

The former can apply to both a breach of contract by one party and no breach of contract; The latter usually applies only to the refusal or non-performance of a contract by one party.

2. The scope of application of the two is different.

The former is mainly applicable to continuing contracts, which are generally mainly for contracts that cannot be performed at one time and can only be completed after continuous performance, such as lease contracts, engineering contracts and contracts with the provision of labor services as the subject matter; In principle, the latter is only applicable to non-continuous slag and filial piety.

3. The legal consequences of the two are not the same.

The legal consequences caused by the termination of the contract are: the previous contractual relationship between the two parties is extinguished, and the two parties have a new relationship of rights and obligations; The legal consequences of the termination of the contract will be reinstated.

Basis of Famosen Law: Article 557 of the Civil Code of the People's Republic of China: In any of the following circumstances, the creditor's rights and debts shall be terminated:

a) the debt has been fulfilled; (2) Debts are offset against each other; (3) The debtor deposits the subject matter in accordance with law; (4) Creditors are exempted from debts; (5) The creditor's rights and debts are attributed to the same person; (6) Other circumstances provided for by law or agreed upon by the parties. If the contract is terminated, the rights and obligations of the contract shall be terminated.

Legal analysis: There are differences between the rescission agreement and the termination agreement, which is what we usually call the rescission and termination of the contract: (1) The effect of the two is different.

The rescission of a contract can have effect in the past, so that the contractual relationship is extinguished retroactively, and the effect of restitution can occur, and it can also take effect in the future, that is, it does not have retroactive effect. The termination of the contract only extinguishes the contractual relationship and takes effect in the future, and does not produce the effect of restitution. (2) The scope of application of the two is different.

Rescission is often seen as a remedy for breach of contract and is a sanction for the defaulting party. Therefore, the rescission of the contract generally applies only in the event of a breach of contract. Although the termination of the contract is also applicable to the breach of contract by one party, it is mainly applicable to the situation of non-breach of contract, such as the termination of the contract due to performance, agreement between the two parties, set-off, and commingling.

It can be seen that the contract is terminated. The scope of application is broader than that of contract termination.

Legal basis: Article 560 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.

Article 934 of the Civil Code of the People's Republic of China: Where the client dies or is terminated, or the trustee dies, loses civil capacity, or terminates, the entrustment contract is terminated; However, unless otherwise agreed by the parties or it is not appropriate to terminate it due to the nature of the entrusted matter.

Article 936 of the Civil Code of the People's Republic of China: Where the entrustment contract is terminated due to the death of the trustee, the loss of civil capacity, or the declaration of bankruptcy or dissolution, the trustee's heirs, estate administrators, legally-designated ** persons or liquidators shall promptly notify the trustee. If the interests of the trustor will be harmed due to the termination of the entrustment contract, the heirs, estate administrators, legal agents or liquidators of the trustee shall take necessary measures before the trustor makes a deal of the aftermath.