Grounds for termination of work (service) contract may be various; however, in practice, the termination by the customer is often associated with the violation of time limits and quality of work (services) performed by the contractor, and such contracts are terminated by the contractor in case of late payment by the customer.
A work (service)contract may be terminated:
- by agreement between the parties;
- judicially;
- by unilateral refusal to perform the contract.
There are other ways to be realized from the contractual obligations, but they are related to the grounds of its invalidity and non-conclusion.
Termination by agreement between the parties
This method is preferable for any party to the contract, but it is possible only if there are no unsolvable disputes and disagreements. It is important to keep in mind that the agreement on termination of the contract must contain, among other things, financial conditions, including the payment of an outstanding advance, a condition for payment for the work performed.
Termination in court
As a general rule, a contract may be terminated by demand of one of the parties in court in the event that the other party violated significantly its conditions and terms, as well as in other cases provided by law or the contract. As a rule, such disputes are complicated by additional requirements and require compliance with the claim procedure. For the court to determine the circumstances of the execution of the contract, special quality of the work performed, the construction and technical expertise is often appointed, the result of which influences the outcome of the case to high extent. The correct choice of an expert organization, literacy of questions posed to the expert require that the representative of the party to the agreement in court has appropriate training. High-quality legal assistance to the party to the contract will also be required when preparing a claim, statement of claim and representation of the party’s interests in court, as disputes of this kind can be complicated by counterclaims, as well as violations committed by the plaintiff.
Unilateral termination of contract
Grounds for unilateral termination of contract are established not only by law, but they may also be provided in the contract. Unilateral termination of contract results frequently not only in its termination, but also subsequent claims of compensation for costs incurred and damages caused.