Notice of unilateral termination of the contract

A notice of termination is a document whose purpose is to terminate any transaction concluded by two or more agents. Sending a notification letter is the responsibility of the person who wishes to terminate the previously established agreement. The notification is formulated in writing and, accordingly, has a form. In today’s text, we will look at samples of such papers, figure out the order in which a notification is drawn up and issued, and talk about specific issues.

Notice of termination of contract

Why do you need notice of termination?

Any agreement concluded by agents and formalized in writing and officially has several options for termination. This can happen within the period established by the contract, by decision of the judicial authorities, at the request of one party or both. If one party wants to terminate the agreement earlier than indicated in the document on its conclusion, it must notify the other parties about this. If this does not happen, it will be considered that the party has arbitrarily, unilaterally decided to ignore the agreement, which may lead to unpleasant consequences.

Accordingly, the other party receiving the notification letter is forced to respond to it within thirty days, either within the period specified in the original agreement or in the sent letter. If the counterparty ignores the written notice, its author has the right to go to court with a demand to terminate the agreement unilaterally. This cannot be done right away - you must first notify the second participant.

Article No. 782 of the Civil Code of the Russian Federation regulates the right to initiate termination of any agreement. However, the letter of the law dictates that one of the parties must assume damages, liquidated damages and other material payments, if necessary.

Article 782. Unilateral refusal to execute a contract for paid services

The notice of termination of the contract is written in two copies, one of which the author party keeps for himself. The form of the document is not established by law; depending on the situation, the most successful wording is chosen. We offer our version.

How to send a notification

It is recommended to send notifications via Russian Post by registered mail with a list of attached documents. The inventory must include a “notice of cancellation of the contract” with the details of the document itself.

You can also deliver a notice against receipt. However, the person who accepts the document must have the appropriate authority.

You must ensure that the notice is sent to the correct address. If the case goes to court, and the initiator of the termination of the contract made a mistake with the address data, then the court may declare the cancellation of the document invalid. If the addressee is an entrepreneur or organization, it is necessary to send a notification to the address indicated in the Unified State Register of Individual Entrepreneurs or the Unified State Register of Legal Entities. If the addressee is an individual, then the notification is sent to a known place of residence.

It is necessary to retain documents establishing the fact that the notification was sent and received.

• If the cancellation of the contract is carried out unilaterally or by agreement of the parties, then there is no need to go to court.
• If the counterparty refuses to terminate the contract or the participants have unresolvable claims against each other, then legal proceedings will need to be initiated.

If the initiator of termination of the contract was a company that keeps a log of incoming and outgoing documentation, then the fact of sending the notification should be noted in this log. It is necessary to indicate the date, purpose of the notification, and information about the addressee. This will serve as one of the proofs that the counterparty was properly informed if the matter comes to litigation.

Sample written notice

Logically, the letter can be divided into five parts.

1. The first indicates who is sending the document and to whom. Here you need to indicate the full name of the company or personal data of the person, and, if necessary, details of the financial organization and address.
2. The second part of the notification is the main one. It describes the subject of termination, that is, the previously concluded agreement, its details, essence, and names all the parties who took part in its conclusion. The second part also details the reason for breaking the original agreement. In particular, failure by the second party to comply with the requirements and conditions of a previously signed agreement. The reason may be various circumstances, in particular, force majeure. We'll talk about this in more detail below.
3. The third part contains clarifications and notes. Here you can indicate the date from which the contract is terminated, the time period during which the second counterparty (or other parties) are obliged to respond to the notification document and confirm its receipt.
4. The fourth part contains a list of documents if they are attached to the agreement (for example, papers justifying the termination of the agreement).
5. The fifth part is formed from the date when the notice was written, as well as the signatures of the author party. The final part of the notice may also contain an excerpt from Article No. 450 of the Civil Code of the Russian Federation, stating that the contract, which one of the agents refused, is already considered partially amended or terminated.

Sample notice of unilateral termination of an agreement

Notification procedure

Before discussing the procedure in which one party notifies the counterparty of the termination of the contract, it is necessary to understand how such notification differs from a refusal to fulfill obligations under the agreement. First of all, this is a difference in the legal framework. Unlike a party’s refusal to fulfill its obligations under a contract, a unilateral break thereof must have a good reason. That is why the party initiating the break must notify the counterparty of its intention to terminate the agreement between them, indicating in a letter the reasons for its demand.

The Civil Code of the Russian Federation names three reasons why a contract can be terminated at the request of one party:

1. This possibility is provided for in the initial agreement (without sanctions or sanctions are listed in the annex to the agreement).
2. A significant change in the circumstances of the transaction (force majeure, events that are impossible for early prediction, but upon the occurrence of which the contract becomes absolutely impossible for further performance by one of the parties).
3. Significant violation of the contract by the second party (actions of the counterparty that contradict the original agreements or ignore them).

Thus, the law allows you to terminate a contract of almost any nature. To do this, you must adhere to a certain order:

1. Draw up a document indicating a compelling reason for terminating the agreement.
2. Send the document to the other party.
3. If the counterparty agrees with the stated arguments, draw up an agreement to terminate the original contract (if the counterparty disagrees, go to court).
4. Settle the material consequences of premature termination of the contract, if any.

Officially notifying the counterparty of the termination of compliance with the agreement is a civilized measure to resolve the issue

Different contract formats have some nuances when drafting. Let's look at the most popular ones.

Going to court

If the other party refuses to terminate the contract or during the negotiations the participants encounter a conflict situation, then it is necessary to go to court. The claim describes the current circumstances, all relevant documents are attached to the application, as well as certificates and receipts that prove the fact that a notice was sent to the counterparty.

If the interests of the plaintiff are protected by a representative, he must have with him a notarized power of attorney.

The case will be heard in court for 2 months. If a positive ruling is made, the contract is considered terminated from the moment the court decision enters into legal force.

If the contract provides for a clause on its early termination, then the initiator of the cancellation of the document is exempt from fines. But in some cases it is necessary to pay penalties in order to compensate for losses and lost profits, as compensation, especially if the contract for the provision of paid services is terminated. There is no uniform judicial practice in such cases.

To avoid litigation, it is necessary to draw up the text of contracts without ambiguity and ambiguous language.

Termination of the lease agreement

The lease agreement for space can be terminated unilaterally. The notice can be drawn up by both the tenant and the landlord. Let's consider what reasons are considered valid when writing a paper by both one and the other party.

Table 1. Examples of reasons for terminating a lease agreement

Video - Termination of a lease agreement

If termination without court is impossible

If the contract does not explicitly state that the contract can be terminated unilaterally, then the only option to terminate the relationship is to go to court. This does not mean that additional documents will not be required in this case.

So, if a pre-trial procedure is provided for legal relations, then you must first submit a claim (demand). When terminating a contract, it is recommended that you always comply with it.

A claim is filed in court according to the general rules. It should contain:

• details of the court to which the application is submitted, as well as data of the participants in the proceedings, the amount of claims and the amount of the fee;
• name of the application;
• general circumstances of the case. It is indicated that an agreement was concluded, as well as the need to terminate it for some reason;
• reference to legal acts and clauses of the contract that guide the applicant;
• other circumstances relevant to the case. For example, it should be indicated exactly what factors served as the reason for termination, what attempts were made to resolve the conflict, etc.;
• list of attachments (documents that are submitted along with the claim).

Legal assistance in preparing a statement of claim >>

The claim must be accompanied by the contract itself, as well as other documents necessary for consideration, for example, a copy of the claim.

The court will terminate the contract if there are reasons for this. For example, it is not fulfilled by the second party or essential conditions have been violated.

Read: How to independently check the reliability of a counterparty

Notice of termination of contract to employee

According to current labor legislation, a person can be employed under two types of agreement: fixed-term and open-ended. In the first case, the exact date is known when the employee ceases to be registered as such. In the second case, the date is open, that is, the specific time of termination of labor obligations is not specified.

In the case where a person is employed for an indefinite period, and there is a record of this in his work book, notice of dismissal usually occurs orally. The employee is called for a conversation by the manager or head of the HR department, reporting the current situation. When a fixed-term contract has been signed, if it is terminated ahead of schedule, it is necessary to draw up a notice of this.

Important point! Three days before the agreed end of the fixed-term employment contract, the person must also be notified that the cooperation is coming to an end. If the employer does not do this, then according to the Labor Code of the Russian Federation (Article No. 77), the dismissal is not considered lawful.

Article 77. General grounds for termination of an employment contract

A notice of termination of a fixed-term employment contract is drawn up in free form, but the paper must contain the main necessary points. Thus, the header must contain the name of the organization and personal data of the employee to whom the notification is sent. Next, the person is clearly informed about the reason for terminating the fixed-term contract (expiration of its term or other reasons), as well as the date from which he ceases to be registered in the state.

The reasons why the contract is terminated early may be:

1. Failure by an employee to perform duties or to perform them incompletely.
2. Incompetent employee, low level of qualifications.
3. Inability to continue doing work due to unwillingness to acquire additional skills.
4. Reluctance of the employee to move to another position and the like.

Below there should be a space left for a signature, leaving which, the employee confirms his familiarization and agreement with the paper on termination of the agreement. The document must also contain the data and signature of the organization’s representative. The notice is drawn up in two copies. It is best to give both to the person in person so that he can sign the forms, keeping one for himself.

Notice of termination of the service agreement

Termination of a service contract may be terminated early for a number of reasons. These include non-compliance with the terms of the initial agreement, the inability of one party to continue providing services, and the like. As with the termination of any official contract, the counterparty cannot unilaterally refuse to fulfill its obligations, but can send a notice of termination to the other party.

Most often, for notifications of termination of a contract with an employee, organizations use a letterhead

The notification is based on the original contractual terms - that is, the reasons and factors specified in the original contract for which the agreement can be terminated ahead of time at the initiative of one of the parties. For a unilateral desire to terminate the contract, other factors are provided:

1. Violations of the terms of the transaction by the second party.
2. The onset of unfavorable conditions under which the transaction loses all meaning.

The paper must be drawn up in two copies, which are handed over to the other party for review and signature. If the counterparty agrees to terminate the agreement, it is terminated at the will of the parties. Otherwise, the matter is resolved through the court.

Important point! The trial will begin only if one of the parties can prove that they tried to resolve the situation peacefully, out of court. The argument will be a copy of the notice of termination of the contract, which the counterparty has read but refused to sign. If one party understands that there will be no peaceful termination of the transaction, it is better to send one copy of the document by registered mail.

Unilateral termination

Both the customer for the provision of services and the party providing these services have the right to terminate the agreement unilaterally, without going to court. To do this, it is necessary to compensate the second participant for his expenses incurred in connection with the refusal to continue the terms of the agreement. In this case, real and not hypothetical expenses are reimbursed. The letter of the law determines that lost funds are compensated in full. However, the party has the right to reimburse only the money that the counterparty lost before the agreement was terminated.

Termination of a contract with a foreigner

To terminate a service agreement with a foreign citizen, you do not need to take any special measures. A sample form has been published on the official website of the Russian Ministry of Internal Affairs, which provides information on how to correctly formalize the termination of an agreement. The paper also contains information about both parties to the agreement, indicating for what reason and from what time the agreement ceases to be in force.

Notice of termination of an employment contract or a civil contract for the performance of work (provision of services) with a foreign citizen who arrived in the Russian Federation in a manner that does not require a visa

Both when concluding and terminating a contract with a foreigner, it is necessary to notify the Federal Migration Service at the place of residence. Notification of the institution must be made within three days from the moment the relevant papers were signed by the parties. You can give the notification in person, send it by mail, or generate and send it through the State Services portal.

Subtleties of composing notifications for different situations

Informing the other party about the desire to terminate the contract can occur in various areas.

Employment contract

If the goal is to terminate the employment contract, the notice is issued in writing and given to the employee against signature. If a person refuses to sign, two witnesses are brought in, and then an act of refusal to sign the notice is drawn up. Next, the mentioned document is sent to the employee’s place of registration.

There are no strict requirements for the structure and content of paper in legislative acts, rules and regulations. The document is drawn up arbitrarily, but it is recommended to take into account some nuances:

1. It is recommended to notify the employee of the intention to terminate the employment contract no later than three days before the end of its validity period.
2. An indication of the article of the Labor Code of the Russian Federation, as well as the reasons for termination of the relationship, is mandatory.
3. The document is signed by the head of the company, as well as the deputy.
4. The documentation is drawn up in 2 copies. One of them is given to the employer.
5. Notifications are recorded in a log and stored for at least 75 years.

Download notice of termination of employment contract (sample)

Supply contract

In the case of a “supply” agreement, there are a number of caveats. The paper specifies the type of product, its delivery time, and the cost of the transaction object. If either party unilaterally withdraws from the agreement, the risk of economic consequences and loss of reputation is high. This means that the grounds for refusal are justified taking into account the current legislation.

A common reason for refusal to cooperate is the low quality of the delivered goods or violation of delivery deadlines (specified in the agreement). The fact of such violations is stated in the contract and supported by relevant papers. The supplier has the right to terminate the agreement in a situation where the other party refuses the goods more than 2-3 times or delays payment. In such circumstances, the notice contains information about the frequency of violation of contractual obligations.

The following documents are attached to the notification:

• Checks confirming the fact of delay.
• "Delivery" invoices.

Termination of the contract (if the initiator is one party) is possible with the right approach and a correctly formatted letter.

Download notice of termination of the supply agreement (sample)

Contract for services

The reason for termination of such an agreement is violation of the terms of the agreement, failure to fulfill obligations, etc. Termination of cooperation is possible by mutual agreement, unilaterally or through the courts. In case of early termination of cooperation, you are allowed to take one of the following paths:

1. Draw up a termination agreement and stop cooperation.
2. Draw up a statement of claim and bring it to court. Such a decision is inevitable if the parties fail to reach an amicable agreement.

When terminating the contract, a statement is drawn up (there is no single form). It is drawn up on company letterhead or compiled randomly (indicating the most important details). A simple statement of termination is used in situations where unilateral refusal is possible under the terms of the contract.

The service consumer retains the right to issue a notice of termination. In this case, the letter does not lead to a break in cooperation - the decision is made by the judicial authority. As a rule, such a paper is called a claim, but this is not entirely correct (the differences are discussed above).

Download notice of termination of the contract for the provision of services (sample)

Summarizing

Even when drawing up any official agreement that is signed by representatives of the parties, it is necessary to specify in the document the mechanism for its early termination. Each counterparty is obliged to foresee risks and understand that it is impossible to sign a document, the effect of which in the future may cause significant losses.

Terminating agreements unilaterally is a frequent, almost daily, practice in Russia. At the same time, it is difficult to predict whether the other party will agree to resolve the issue peacefully and close the agreement with mutual desire. If the party who authored the notice of termination of the contract is confident that he is right and terminates cooperation for a compelling reason, there is a high probability that his claim will be satisfied in court.

Reasons

The contract can be terminated unilaterally if:

• this possibility is specified in the document itself and is fully agreed upon between the parties;
• there are significant violations of the terms of the transaction by one of the parties. Significant violations include those in which one of the parties may suffer significant damage and lose all the benefits provided for by the transaction. For example, a citizen enters into an agreement with a banking organization to receive funds and undertakes to make payments on time. If a person violates the payment deadlines, the banking organization may terminate the contract;
• there have been significant changes in circumstances. That is, changes occurred that were impossible to predict, and under them the contract would not have been concluded. For example, an agreement was concluded between the parties to rent out an apartment with a fixed payment amount. Due to the onset of the financial crisis, rent is significantly reduced, which affects the interests of the landlord.

Depending on the type of contract concluded, the list of reasons can be significantly expanded. In any case, further termination of the contract must be carried out by mutual agreement or in court.

By mutual agreement, breaking a contract is almost always easier than in litigation, since when applying to the courts, you will need to not only provide evidence in the form of documents and certificates, but also conduct a series of hearings, which leads to a loss of time.

They go to court only when absolutely necessary, when the other party does not want to compromise.