How to dissolve a contract?

contract

How many times have you ever wanted to close relationships with a customer who pays when he wants, with a supplier who is never punctual, with a collaborator who never does what he has to do? Let’s see how to dissolve a contract in compliance with the regulations.

How to dissolve a contract

The contract has the force of law between the parties. Therefore, a contractor cannot evade his obligations just because he has changed his mind. However, each rule has its exceptions. Here’s how to terminate a contract.

The policyholder can terminate a contract in the following cases:

  1. mutual agreement: if all the other contractors allow it;
  2. withdrawal established by law: when the law allows you to withdraw from the contract before the expiry date and without the consent of the other party;
  3. contractually established withdrawal: when the contract provides for the right to withdraw;
  4. termination of law or termination for non-fulfillment: when a contractor fails to fulfill its obligations;
  5. termination due to supervening impossibility: when the performance has become completely impossible;
  6. termination due to excessive burdens: when the service has become too burdensome after the signing of the contract;
  7. termination: when someone enters into a contract on unfair terms because he is in a state of danger or need and the other party takes advantage of it.

Withdrawal, termination and termination

Withdrawal: it is the right of one of the contracting parties to dissolve a contract before its expiry, without the consent of the other party. For the withdrawal to be valid, it must be provided for in the contract and must be communicated in writing to the other contractor. There are contracts from which it is always possible to withdraw within a period established by law: contracts concluded outside the business premises, timeshare contracts, securities investment contracts, life insurance policies, contracts negotiated at a distance (purchases by mail order or catalog, by television, by fax or on the internet, pursuant to Legislative Decree 206/05). Find out more about how to withdraw from a contract and when it is possible.

Resolution: consists of the decision to dissolve the contract when one of the parties is in default. The hypotheses are:

  • Resolution of law. It occurs when:
    – an ” express termination clause ” has been inserted in the contract by which the contracting parties expressly agree that the contract can be terminated in the event that a specific service is not performed in the manner established in the contract;
    – there is an “essential term” to perform a certain performance and this term expires without the performance having been fulfilled.
  • Termination for non-fulfillment. It occurs when one of the contractors has not performed a specific service.
  • Termination due to unexpected impossibility. It occurs when a service has become completely impossible: (for example Alfa had undertaken to supply 100 tubes of a particular material but in the meantime, a law has intervened which prohibits its sale. Alfa is released from its obligation).
  • Termination due to excessive onerousness: in contracts with periodic, continuous or deferred execution, if a service becomes excessively onerous due to extraordinary and unforeseeable events, the party that must perform this service may request the termination of the contract (for example Beta is was obliged to periodically supply 50 computer components at a set price; a tsunami in the manufacturing area in Indonesia drives component prices soaring. If the other party does not agree to pay the new price, a resolution can be requested for excessive onerousness).

Termination: the law provides for two cases of termination:

  • the contract concluded in a state of danger: this is the case of those who undertake to provide a service under unfair conditions due to the need, known to the other party, to save themselves or others from the current danger of serious harm to the person.
    There must be 3 conditions :
    1. the state of danger in which one of the contracting parties or another person was at the time of stipulation;
    2. the unfairness of the conditions to which the contractor had to submit to save himself from the state of danger;
    3. the knowledge of the state of danger on the part of the one who takes advantage of it (for example Tom is injured in an accident and undertakes to pay a disproportionate sum to the motorist who takes him to the hospital).
  • a contract concluded for injury: this is the case of those who are in need and undertake to perform a disproportionate performance compared to the performance of the other contractor, who is aware of it and takes advantage of it to take advantage of it.

To enforce termination, 3 conditions must exist :
– the strong disproportion between the performance of one party and that of the other, such that the value of the performance of the injured party exceeds double the value of the consideration;
– the state of need of the damaged party (also of a financial nature);
– taking advantage of the state of need (for example Tazi finds himself in economic difficulties and decides to sell off his assets to Gaius, who knows about Tazi’s serious problems and takes advantage of it, offering him an inadequate price).