| [Visitor (112.21.*.*)]answers [Chinese ] | Time :2022-03-25 |  Article 557 of the Civil Code
In any of the following circumstances, the rights and obligations of the contract shall be terminated:
(1) The debt has been performed in accordance with the agreement;
(2) Termination of the contract;
(3) debts are set off against each other;
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(4) the debtor deposits the subject matter in accordance with law;
(5) the creditor discharges the debt;
(6) Creditor's rights and debts are attributable to the same person;
(7) Other circumstances provided for by law or terminated by agreement of the parties.
The methods of contract termination mainly include: liquidation; Cancellation; Set-off; Deposits; Exemption; Mix* and so on.
1. Liquidation.
Liquidation is the act of achieving the purpose of the debt in accordance with the provisions of the contract. Article 557 of the Civil Code stipulates that "the debt has been fulfilled as agreed", which is the so-called liquidation here. Liquidation is based on the principle of full liquidation. The person who pays off the contractual debt is the settler, and the settler can be either the debtor or a third party. The cost of satisfying a debt shall be borne by the debtor unless otherwise provided for by law or agreed by the parties.
2. Cancellation.
Rescission includes unilateral rescission and rescission by both parties, unilateral rescission refers to the expression of intent of one of the parties to extinguish the contract by exercising the right of rescission, and rescission by mutual agreement between the parties to extinguish the original contract. Rescission also includes agreed rescission and statutory rescission
3. Offsetting.
It means that when two persons bear debts to each other, each uses its claim as a settlement of debts, so that its debts and those of the other party are extinguished within the same amount. Claims for set-off are active claims; Claims that are set off are passive claims. Set-off is divided into statutory set-off and consensual set-off according to its causes.
4. Deposit and deposit.
Refers to the legal system in which the subject matter of a contract cannot be delivered to a creditor due to reasons, and the debtor entrusts the subject matter to the depository department for preservation in order to extinguish the contractual rights and obligations. According to the provisions of the Rules for Notarization of Deposits and Deposits, notary public institutions in China may be responsible for handling deposit and deposit matters.
5. Exemption.
That is, the expression of intent of the creditor to abandon the claim and thus extinguish the contractual relationship.
6. Mixing-same.
Refers to the legal fact that the creditor and the debtor are attributed to the same person, resulting in the extinction of the contractual relationship.
When the above reasons arise, they will lead to the extinction of the contractual relationship.
What are the legal consequences of termination of the contract
The termination of a contract includes the termination of the performance of the contract and the extinction of the contractual relationship.
The termination of contract performance means that the rights and obligations of the parties arising from the contract are extinguished, and the validity of the performance of the contract is extinguished in the future, the termination of the performance of the contract does not eliminate the liabilities of the parties for returning property, compensating for losses, etc. The extinction of the contractual relationship means that all the rights and obligations of the parties arising from the contract no longer exist, the parties no longer perform their contractual obligations, and the creditor's rights and debts caused by the contract are all extinguished.
In practice, if the termination of the contract is not caused by statutory exemption factors such as force majeure, but because of the breach of contract by the other party, then you can fully pursue the other party's liability for breach of contract in accordance with the law. As for the way of contract termination, there are six kinds of specific content stipulated in China, and everyone can understand it in detail from the above. |
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