How To Properly Terminate A Paid Service Agreement

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How To Properly Terminate A Paid Service Agreement
How To Properly Terminate A Paid Service Agreement

Video: How To Properly Terminate A Paid Service Agreement

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The simplest way to terminate a contract for the provision of services for a fee is to conclude an agreement between its parties. In the absence of mutual consent to terminate this agreement, one of the parties can exercise the right to unilaterally refuse to execute it or go to court.

How to properly terminate a paid service agreement
How to properly terminate a paid service agreement

Contracts for the provision of paid services are concluded in various areas of entrepreneurial activity, on the basis of these agreements, educational, medical and other services are usually provided to ordinary consumers. The question of the correct termination of this agreement usually arises when there are any disagreements between the customer and the contractor, a change in circumstances, serious breaches of obligations, or in the absence of interest in further cooperation (the latter is typical for ongoing contracts). The standard and simplest way of termination is the conclusion of an additional agreement, in which the customer and the contractor express their intention to terminate the relevant relationship from a certain 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 an agreement on the provision of compensated services to refuse its execution unilaterally. Such a refusal actually means termination of the contract, but entails additional obligations for the party that has exercised this right. So, the contractor, before the expiration of the agreement and the full fulfillment of obligations to the customer, may refuse the specified agreement, but at the same time undertakes to reimburse the customer for losses that such a decision may cause. If a unilateral refusal follows on the part of the customer, then the latter is obliged to reimburse the contractor for all actually incurred expenses (for example, the contractor can purchase materials, tools, spend time providing services under the contract).

Termination of the contract in court

If the parties to this agreement do not reach an agreement on its termination, then the only option for terminating the relationship is to go to court. In this case, the party that requires termination of the agreement in court must provide substantial evidence confirming the existence of grounds for breaking the agreement. So, the court can, by its decision, terminate the agreement if the contractor or customer makes a significant violation of its terms. Another reason is a serious change in the circumstances under which the contract was concluded. In the latter case, the party requiring termination of the agreement is obliged to prove that the change in circumstances makes the continuation of the relationship under this agreement meaningless (for example, from an economic point of view).

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