Termination of the contract unilaterally: is it possible?

As a rule, termination of the contract unilaterally is unacceptable. The legislation of the Russian Federation provides for the possibility of termination of transactions at the initiative of one of the parties in some exceptional cases. Let's look at them in more detail.

In law

If the Civil Code or some other normative act provides for a unilateral withdrawal from the contract, then this means an out-of-court procedure for terminating the transaction. That is, one indication of such a possibility in the law is enough, you do not need to go to court. In this manner, for example, it is possible to terminate the contract for the supply, provision of services, purchase and sale and contract. True, such an extrajudicial procedure also has varieties. Refusal to perform the contract in some cases may be acceptable only under certain conditions. For example, if the contractor breaks all the agreed terms under the work contract, the customer has the right to withdraw from the agreement and demand compensation for damage. Also, termination of the contract unilaterally may be lawful and without taking into account any factors. So, if the term of the contract is not indicated, either party may refuse it, having previously warned the other party of such intention.

Only in court

Some norms of legislative acts directly indicate that termination of the contract unilaterally is possible only by a court decision. The Civil Code stipulates that a donation, lease, and other agreements can be terminated in this way. Another question is when one of the parties seriously violates the terms of an agreement. The court has the power to decide on the termination of a certain transaction if such violations have been identified and do not raise any doubts.

Under contract

The law does not prohibit prescribing the possibility of unilateral refusal to complete the transaction in the contract. In order to avoid misunderstandings in the future, it is better to include such a clause in the document. Also, counterparties have the right not to indicate possible reasons for its termination. If there is no such clause, you will have to find out how you can terminate the contract in accordance with the law.

Legal Consequences

Termination of the contract unilaterally will always have some consequences for each of its participants (not always pleasant ones). All obligations that were specified in the agreement completely cease to exist, about which a special agreement must additionally be concluded. If the termination was made in a court of law, then the transaction is considered completed from the date of the announcement of the relevant court decision. If one of the parties to the agreement violated its provisions, the victim may demand compensation for losses in connection with this, demand the return of the advance upon termination of the agreement, or take other actions provided for by law.

What if the obligations are met?

Remember, the cancellation of the contract at the initiative of one participant in the transaction is possible only before its full execution. If the transaction has already been fully completed or at least one of the participants has already fulfilled all its obligations, the procedure for terminating the agreement unilaterally does not apply. Unfortunately, practice shows that cases of termination of contracts on a unilateral initiative are quite rare. But still, this is not a reason to give up. If you have irrefutable evidence, justice will be on your side.