In terminating any contract, including a lease contract, it is important to follow the established rules. There are several ways to terminate a lease contract, namely:
- by agreement between the parties to the contract;
- by unilateral termination of the contract;
- termination of the contract in court.
There are other ways to terminate a lease contract, but they are related to invalidity and non-conclusion matters. The choice of a way to terminate lease contract depends on the goal pursued, the terms of the contract, as well as the assessment of the risks and consequences that may occur when the contract is terminated.
Termination by agreement between the parties
This method is possible if there is a constructive dialogue between the parties, which depends on many factors, including the legal position. Conclusion of an agreement to terminate the contract is often the result of a long and painstaking negotiation process, as a result of which all disputes between the parties are reflected in one document. This is the most rational way to resolve any issues, but if you can not reach an understanding, you have to recourse to other options.
Unilateral termination of contract
Termination of the contract by this way is possible only if such possibility is provided by the contract, and in some cases by law (for example, in entering into a lease contract for an indefinite period; if the tenant terminates hiring agreement). If one party terminates the contract on a unilateral basis, this party must send a relevant notice to the other party. The time of notification of termination of the contract depends on a number of factors: validity term of the contract to be terminated, type of the property demised, special requirements established by law and the contract. In other words, before terminating the contract, it is necessary to study in detail not only the lease contract itself, all additions and appendices to it, but also general and special provisions of the law, as well as judicial practice.
As a general rule, the contract is terminated upon receipt of a notice of unilateral termination; however, the terms of a certain lease contract may provide other terms of termination. In this regard, it is important to draw up correctly and send a notice of termination to the other party, otherwise the notice will not have legal force and will not lead to termination of the contract.
Termination in court
In many cases, termination of lease contract in court is the only way available to the parties. The grounds for such termination may be provided in the contract, special regulations on lease contract, and general regulations on termination of the contract. A party to the agreement that believes that it has grounds for termination of the contract must comply with the pre-trial dispute settlement procedure before applying to the court, that is, send a contract termination proposal to the other party. The contract will be terminated with effect from the time the court decision comes into force. This method is the most time-consuming and requires a certain qualification.