Cases of contract termination open up opportunities to optimize benefits for stakeholders. Contract consulting services at Long Phan provide in-depth solutions, helping customers grasp and effectively take advantage of legal regulations on contract termination. Please follow the following article, Long Phan will provide useful information about the benefits of using a professional consulting and support unit in contract transactions.

Cases of contract termination

Pursuant to Article 422 of the Civil Code 2015, it stipulates cases of contract termination. Specifically, these cases include:

• The contract has been completed;
• According to the agreement of the parties;
• The individual entering into the contract dies, the legal entity entering into the contract ceases to exist and the contract must be performed by that individual or legal entity;
• The contract is canceled or unilaterally terminated;
• The contract cannot be performed because the subject matter of the contract no longer exists;
• The contract terminates when circumstances fundamentally change;
• Other cases prescribed by law.

Accurately determining the case of contract termination is important. It directly affects the rights and obligations of related parties. At the same time, this also determines the legal and financial consequences that arise after terminating the contract.

Consequences of contract termination

Depending on each case of contract termination, it can lead to different consequences. Understanding these consequences helps customers better prepare and limit risks when terminating the contract.

1. Termination of rights and obligations of the parties:

When the contract terminates, in principle, the rights and obligations of the parties in the contract also end. However, some obligations may continue after termination of the contract. These obligations are often clearly stated in contracts or by law, including:

• Obligation to pay outstanding debts;
• Obligation to compensate for damage (if any);
• Obligation to keep information confidential;
• Terms related to intellectual property rights;
• Dispute resolution clause.

Clearly defining the remaining obligations after contract termination helps avoid disputes and protect the interests of related parties.

2. Compensation for damages:

In case the termination of the contract causes damage to one party, the violating party may have to compensate. The level of compensation is usually based on the actual loss suffered by the violated party, including:

• Physical damage: property value lost or damaged; remediation costs; lost or reduced economic benefits;
• Mental damage: loss of honor, reputation, and dignity (applies to individuals).

Determining and proving damages requires diligence and legal expertise to ensure the rights of all parties.

3. Penalty for breach of contract:

If the contract has a penalty provision, the violating party may be subject to a fine. The penalty for breach of contract is determined by the parties but does not exceed the maximum penalty prescribed by law.

For example, the Law on Commercial stipulates a fine of no more than 8% of the value of the violated contractual obligation; the Construction Law 2014 contracts fines do not exceed 12% of the value of the violated contract

4. Return of benefits:

The parties are obliged to return to each other what they have received. In cases where it is not possible to repay in kind, it must be returned in money, unless otherwise agreed upon or otherwise prescribed by law.

Understanding and carefully preparing for the consequences of contract termination is an important factor in protecting customers’ rights and limiting legal and financial risks. Expert support will help customers effectively handle arising problems, ensuring the contract termination process goes smoothly and legally.

Benefits when using contract termination consulting services

Using contract termination consulting services brings many practical benefits to businesses and individuals. First, we will carefully analyze every detail of the contract and your specific situation. This helps determine the exact case of termination of the applicable contract, thereby providing the most optimal solution, in accordance with legal regulations and maximum protection of customers’ interests.

• Helps customers avoid potential errors that can lead to complicated disputes later. We provide specific advice on how to protect rights and minimize risks and finances when terminating the contract. This is especially important in transactions of great value or affecting the business operations of the enterprise.
• In addition, consulting services also support customers during negotiations with partners. We will help develop an effective negotiation strategy, draft the necessary documents, and ensure the most favorable contract termination agreement is reached. This support helps save time, effort and avoid errors that can be detrimental to customers.
• Using professional consulting services also helps customers save time and resources. Instead of having to do it yourself, customers can focus on core business activities, while still ensuring that contract termination is carried out in accordance with regulations and in the most beneficial way.
• Finally, with our support, we help customers develop measures to prevent risks in the future. At the same time, provide valuable recommendations to improve the contract drafting and management process, helping businesses develop more sustainably and legally.

Consulting and support services for terminating contracts in accordance with regulations at Long Phan

Long Phan provides a variety of professional and comprehensive contract termination consulting and support services, meeting all customer needs. Long Phan’s team of experienced and highly specialized experts will support customers throughout the entire contract termination process in accordance with legal regulations.

Main services at Long Phan include:

• Analyze and evaluate contracts.
• Consulting on contract termination cases.
• Consulting on the consequences of contract termination.
• Drafting written notice of contract termination and contract liquidation minutes.
• Negotiate with partners about termination terms.
• Support in resolving disputes arising from contract termination.

Terminating the contract in accordance with the law is an important factor in protecting the rights of customers. If you need support, please contact Long Phan immediately via the hotline 0906735386 for detailed advice. Long Phan is committed to providing optimal solutions, and helping customers terminate contracts safely and effectively.