How to terminate the contract for the repayable rendering of services

The simplest way of termination of the contract of compensated rendering of services is the agreement between the parties. In the absence of mutual consent to the termination of this agreement, one party may exercise the right to unilateral refusal of its execution or to apply to the court.

The contracts of paid rendering of services are made in different spheres of business activities on the basis of these agreements are usually educational, health and other services to ordinary customers. The question of the proper termination of this agreement usually occurs when there are any disagreements between the customer and the contractor, change in the circumstances of serious breaches of obligations or due to lack of interest in further cooperation (the latter is characteristic of the continuing agreements). The standard and most simple method of termination is the conclusion of a supplementary agreement in which the customer and the contractor expressing their intention to terminate the relevant relationships on a given date, determine the consequences of termination of the contract.

Termination of the contract due to unilateral refusal

Civil law allows any of the parties to the agreement on paid services to refuse to follow it unilaterally. Such refusal actually means the termination of the contract, however, entails additional obligations on the party that used the law. So, the contractor before the expiry of the term of the agreement and the full execution of the obligations may withdraw from the Treaty, but it undertakes to reimburse the client for losses that may be caused by such a decision. If a unilateral refusal to follow the customer, the latter shall reimburse to the contractor all actual costs incurred (for example, the contractor may purchase materials, tools, spend time on the provision of services under the contract).

Termination of the contract in court

If the parties to this agreement fail to reach an agreement on its dissolution, then the only option is termination of the relationship is to appeal to the court. In this case, the party that requires the termination of the agreement in court must produce credible evidence confirming the existence of grounds for breaking agreements. So, the court may, by its decision to terminate the agreement if the contractor or the customer allow a substantial breach of its terms. Another reason is a significant change in the circumstances under which the contract was concluded. In the latter case, the party seeking termination must prove that the changed circumstances make the continuation of the relationship under this contract meaningless (for example, from an economic point of view).