A termination voids a contract or legal obligation.
Termination is the action and effect of terminating . This verb refers to the action of voiding a legal obligation or contract . When carrying out a rescission (a term from the Latin rescissĭo ), therefore, a legal act that had been previously contracted is annulled or cancelled.
For example: "The termination of the North American's contract will cost the capital team several thousand dollars," "If the authorities decide to terminate the concession, we will go to international courts," "Lionel Messi has the clause of most expensive termination in history .
Termination according to law
Each legislation establishes the limits or scope of termination. The usual thing is that the person in whose favor the contract is sent is the one who has the power to terminate it. This does not mean that the counterparty cannot request the termination of the contract when a reason arises that warrants it. In any case, the Court must decide whether said interruption of the contract is valid and appropriate according to the case.
It is also important to know that there are another series of causes when it comes to ending a contract. Among them are revocation , voidability, non-existence, nullity , death or contractual resolution.
The scope and limits of a termination depend on each legislation.
Some issues
Regarding rescission, we would have to highlight some important nuances that are of interest to know its value, its consequences and objectives:
- This is a right of the party that has been affected by the contractual situation.
- In order for it to be understood that there is termination, it is essential to take into account that there must be a disproportion in the relevant benefit.
- It cannot be considered a vice but derives from one.
Termination of employment contract
It is important for anyone who has made the decision to terminate the employment contract they have with their company to follow this series of steps in order to achieve the goal they have set for themselves to the best possible outcome. In this sense, we must proceed to undertake the following recommendations:
- The first and fundamental thing is to read the contract properly to be able to clearly determine its duration and whether it establishes any type of termination clause .
- You must choose to hire or consult a lawyer specialized in these issues.
- It is inevitable to thoroughly study the case to see if there is any type of situation that can be covered and that allows the aforementioned contract to be terminated without having to face any type of penalty, such as a breach of contract.
Classification according to type
Failure to comply with the conditions of the contract is just cause for the termination of a contract. When this lack is proven, the affected party has the right to request compensation because the breaches led to the early dissolution of the contractual obligation.
At a general level, there can be three types of termination: voluntary (there is mutual consent of the parties), judicial (issued by a judicial body in the event of damage caused by one of the parties) or fortuitous (for reasons beyond the control of the party). obliged).