Head of real estate and commercial law practice
Specialist in the field of commercial law and process. Real estate, construction support; land law and protection of property ownership.
Unilateral termination of the contract
Termination of a contract by one of the parties must be motivated and permitted either by the contract or by law, respectively. The procedure for unilateral termination of a contract is enshrined in the Commercial Code of Ukraine, in particular in Article 188. As a rule, unilateral termination is possible only if it is expressly provided for in the contract (for example, in the form of a sanction for failure to fulfill its terms). The possibility of terminating a contract at the initiative of one of the parties is important, as it allows for the prompt protection of the legitimate interests of the counterparty.
When is unilateral termination of a contract allowed?
Termination of contracts is possible in three main cases:
- this is directly provided for by law (for some types of contracts, such as bank deposit contracts);
- there has been a significant violation of the requirements for the quality of the goods (within the framework of the purchase and sale contract);
- such a possibility is provided for by the contract itself (if it does not fall under the cases specified above).
In general, the lawyers of the company “Prikhodko & Partners” recommend that when concluding a contract, always provide for the possibility of its unilateral termination. The following points should be clearly described:
- first, the grounds (for example, violation of the terms of service provision);
- second, the terms of warning the other party about the termination of the contractual relationship;
- third, the procedure for notifying the counterparty in writing.
How to properly carry out the procedure for unilaterally terminating a contract?
Properly terminating a contract requires compliance with a clear procedure in order to avoid further disputes. It consists of the following stages:
- sending a proposal (it is necessary to clearly formulate the decision, the basis, provide the date from which the contract is considered terminated, describe the procedure for completing mutual settlements);
- receiving a notification about the results of considering the notification (within twenty days, the other party must notify about the consent/refusal to terminate the contractual relationship);
- concluding an additional agreement.
Important! It is necessary to avoid unnecessary mistakes and interact with the counterparty as correctly as possible. A lawyer for economic issues will help ensure the correctness and efficiency of the entire procedure.
Unilaterally terminating a contract by court decision: key features
When unilateral termination of the contract is impossible, or the person refuses to do so (although there are legal grounds for this), the only way to terminate the contractual relationship is to go to court. As a rule, a party has the right to refer the dispute to court for resolution in such cases when there is no agreement between the counterparties or the other person does not respond to the notification of unilateral termination of the relevant agreement.
In such situations, it is worth filing a lawsuit with the court, describing in it:
- first, a material violation of the terms of the contract by the other party (including systematic non-fulfillment of obligations);
- second, a material change in circumstances (if the parties could have foreseen it, they would not have concluded the contract).
It is important to know! In the event of going to court, the contract will be considered terminated from the date of entry into force of the relevant court decision (in other words, after the expiration of the period for appeal).
Legal support for unilateral termination of a contract: what services do we provide?
Unilateral termination of a contract requires a deep understanding of the legal nuances. Incorrect actions can lead to litigation, financial losses, or the termination being declared invalid. That is why the support of a lawyer in business matters is key to the successful and legal termination of contractual relations.
The law firm “Prikhodko & Partners” offers the assistance of a qualified lawyer who will provide you with the following legal services:
- preliminary legal examination and consultation;
- preparation of the necessary documents (notices, responses, and a draft additional agreement);
- out-of-court settlement of the dispute through negotiations;
- judicial support in case of non-compliance with the agreement between the counterparties (this includes the preparation and submission of a claim, annexes to it, as well as support in case of need for an appeal or cassation appeal).
To sum up, unilateral termination of a contract is an important tool in contractual relations. This procedure requires compliance with several stages, including sending a reasoned offer, waiting for a response from the counterparty and concluding an additional agreement. If an agreement cannot be reached, you can still go to court. The support of a qualified business lawyer is extremely important, in particular because he has experience in the field of contract law and will be able to help avoid negative legal consequences.
By contacting the Law Firm “Prikhodko and Partners”, you will receive full protection of your rights in the event of unilateral termination of the contract. To find out the cost of a lawyer’s services, fill out the form below.
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Is a subscriber form of service possible to quickly resolve issues as they arise?
Yes, of course, we take companies for permanent support.
The subscription form of service allows you to receive a full range of legal services on an ongoing basis for a fixed monthly fee.
Our lawyers will accompany all economic legal relations of your company: from drawing up contracts and solving corporate issues to representing interests during inspections by regulatory bodies and in court disputes.
We have very flexible pricing, so contact us and we will discuss your specific case.
Do you work only in Kyiv?
Fortunately, modern technologies allow us to effectively solve almost any legal issue online regardless of your location. In cases where personal presence is necessary, our lawyers are ready to travel to any point in Ukraine. Moreover, thanks to our network of reliable partners abroad, we can provide legal support even in international cases. Our goal is to provide you with quality legal assistance wherever you are.
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