Termination of a service agreement: sample agreements

General provisions on termination of a service agreement

A contract for the provision of services, like any contract, is governed by civil law. The easiest way to solve this problem is to terminate the contract for the provision of services by agreement of the parties. The basis for such an agreement may be a violation of the provisions of the contract, which causes damage to one of the parties. If it was not possible to resolve the problem by agreement pre-trial, then it is worth resorting to judicial measures - unilateral termination of the contract for the provision of services.

A correctly drawn up contract

The key to successful bilateral termination of a contract is the correct clauses in it. The more accurate and detailed it is, the easier it will be not only for the parties to come to an agreement, but also to terminate the agreement unilaterally. A good contract must have provisions that will allow you to begin the termination procedure without losses or penalties. The text should not contain:

• prohibition on early termination (including unilaterally);
• clauses on fines and other sanctions for termination;
• long-term warranty obligations;
• mentions of third parties who are interested in the operation of the agreement.

Grounds for unilateral termination of a contract

According to Article 450 of the Civil Code, there are 3 legal grounds for unilateral termination of a contract for the provision of services:

1. If the procedure for terminating such an agreement is determined by the agreement itself or prescribed by law. The contract must also provide for the procedure for canceling the contract for the provision of services.
2. If one of the parties has materially violated this agreement. A material breach in Russian law refers to conditions that place one of the parties in a position in which it may lose everything it hoped to receive after the other party fulfills the provisions of the contract.
3. If circumstances affecting the need to conclude a contract for the provision of services change significantly.

How to terminate a contract unilaterally

Here everything is somewhat more complicated: first the counterparty will have to convince him that the contract needs to be terminated, and then, most likely, the court. In connection with which the contract is terminated:

• the contract specifies the possibility of unilateral termination;
• conditions important at the conclusion have changed (on this basis you can terminate the lease or loan agreement);
• violation of the terms of the transaction by the second party (an increase in rent from the landlord or a “sudden” increase in commissions from the real estate agency that selects an apartment for you - very common types of violations);
• the second party does not fulfill its obligations under the contract (a ground that is often used when terminating a service or contract agreement).

You cannot go to court straight away, even if it seems that terminating the contract in court is easier and faster. The claim will be denied, and you will waste time. You should definitely try to come to an agreement with your counterparty. For this purpose, a termination agreement format is suitable, which specifies the exact date of termination of the agreement and the schedule for repayment of obligations (or a waiver clause).

Sometimes the parties reach an agreement very quickly. How to terminate a lease agreement? You just need to notify the landlord a month or two in advance that the tenant no longer needs the premises. If there are no problem areas in the agreement, then it is quite possible to terminate the lease agreement unilaterally.

Changes in circumstances, however, are not considered grounds for termination by banks and other credit organizations. It is unlikely that you will be able to sign an agreement with them and terminate the loan agreement pre-trial. In this case, and when trying to terminate a real estate purchase and sale agreement with a real estate agency, you will most likely have to go to court.

Unilateral termination of a service agreement, samples

However, if termination is associated with poor-quality performance of the service, or a significant delay in delivery of work, the contractor’s costs can be reduced by agreement of the parties.

Practice shows that in our country, when signing a contract for the provision of paid services, the parties do not pay due attention to the grounds for terminating the contract, which significantly complicates the process of terminating the agreement.

The more detailed the reasons for terminating the contract for the provision of services are described, the higher the likelihood of terminating the contract with the contractor faster and with fewer losses for the customer. Particular attention should be paid to the timing of the provision of services, since failure to meet deadlines is, unfortunately, a fundamental problem in our country.

Unilateral refusal and termination of the contract: what is the difference

It is worth starting with the fundamental question of how the service contract is terminated. There has been some confusion in current practice regarding the termination of such agreements. When compiling them, wording is often used that complies with the provisions of Art. 450 Civil Code of the Russian Federation. For example, the possibility of unilateral termination of the contract is indicated, subject to advance warning, and the period for such warning is specified.

However, in Art. 782 of the Civil Code specifies the possibility of unilateral refusal of execution by both the customer and the contractor, provided, respectively:

• payment by the customer of actual expenses incurred by the contractor;
• compensation by the contractor for all losses incurred by the customer.

The main differences between termination and refusal to perform in accordance with Art. 782 Civil Code of the Russian Federation:

• termination of the contract by decision of one of the parties in accordance with clause 2 of Art. 450 of the Civil Code of the Russian Federation is carried out in court, if we are not talking about the signing of the relevant agreement by the parties, while a unilateral refusal does not require the participation of the court;
• the decision to terminate the contract must be justified, while the refusal may be unmotivated;
• termination of the contract in the event of its termination is carried out from the moment the corresponding court decision is made, while in case of refusal to perform this occurs from the moment the counterparty is notified;
• the costs of terminating the contract are greater than those of refusing to perform - at least by the amount of legal costs.

Obviously, one should not confuse the concept of unilateral termination of a service agreement and refusal to perform. The second option creates much fewer difficulties for the customer and does not entail lengthy legal proceedings; it is much cheaper in financial terms, since the provision of services in most cases is not associated with the costs of the contractor, which would have to be compensated by the customer.

Legislative acts that should be relied upon when terminating a contract

Any civil legal relations are regulated by law. Unilateral refusal to fulfill obligations is provided for in Art. 782 of the Civil Code of the Russian Federation. That is, you can enter into an agreement on early termination of the service agreement and stop cooperation.

The customer is a consumer of services, so he can rely on the provisions of Law No. 2300-1, which protects the rights of consumers and regulates their relations with suppliers.

If the contractual relationship is terminated due to the fault of the customer, the contractor cannot require mandatory written justification for the actions. These are illegal actions! If the contract is terminated due to the fault of the contractor, the opponent must prove the validity of the steps taken with documents. They will come in handy if the matter comes to trial.

Reasoned refusal of a contract for paid services

A contract for the provision of services for a fee is subject to the rule relating to a contract - the customer may withdraw from the contract and demand compensation from the contractor for losses incurred if:

• Deadlines are violated, the contractor delays the start of services, and it is obvious that the deadlines will not be met;

• The quality of services is low (provided that the requirements for eliminating deficiencies are not fulfilled within the time period specified by the customer);

• It is obvious that the services will not be provided properly;

• Presence of significant and fatal deficiencies.

When indicating these circumstances, it is necessary to support them with material evidence, otherwise the executor may appeal the refusal in court.

UNILATERAL REFUSAL TO EXECUTION OF THE AGREEMENT FOR PAID SERVICES

Under a contract for the provision of paid services, the contractor undertakes, on the instructions of the customer, to perform certain actions or carry out any activity, and the customer undertakes to pay for these services.
According to current legislation, one of the ways to terminate a contract
for the provision of services for a fee
is the right of the parties to unilaterally refuse to fulfill the contract, which is enshrined in Art. 782 of the Civil Code of the Russian Federation.

This article also provides for the consequences of such a refusal. Thus, the contractor, subject to full compensation of losses to the customer, may refuse to fulfill his obligations under the contract. The customer has the right to refuse to fulfill his obligations under the contract for the provision of paid services, subject to payment to the contractor of actual expenses incurred solely in connection with the provision of services to the customer (Determination of the Supreme Arbitration Court of the Russian Federation dated December 24, 2013 N VAS-17829/13 in case N A56-38647/2012 ). If the contractor, after the customer refused to fulfill the contract, incurred any expenses, then they are not compensated (Resolution of the Federal Antimonopoly Service of the West Siberian District dated April 29, 2010 in case No. A46-23676/2009).

For example, such expenses may include costs not related to the subject of the contract - costs of removing the contractor’s property from the customer’s territory, and so on. The customer may refuse to fulfill the contract at any time, both before the start of the contract and during the provision of the service, but such a refusal cannot be made after the services have been fully provided. The reason for the customer’s refusal to fulfill a contract for the provision of paid services may be different, and he is not obliged to motivate them, based on the analysis of judicial practice, the reasons for such refusal have no legal significance (Resolution of the Federal Antimonopoly Service of the Volga District of November 17, 2011 in case No. A55-20641/2010 ).

The parties, when concluding an agreement for the provision of services, try to limit the right to unilaterally withdraw from the agreement in order to avoid subsequent adverse consequences. But as follows from judicial practice, the terms of a contract for the provision of paid services cannot provide for a restriction on the right to unilaterally refuse to perform the contract, nor can penalties be provided for such a refusal. So, for example, if the contract stipulates that the advance payment in case of refusal to fulfill the contract will not be returned, then this condition is void. If one of the parties decides to withdraw from the contract, it should, although this is not obligatory, send a notice of this to the other party. So, for example, in the event of a trial, a claim containing demands for the return of a paid advance may be regarded by the court as an exercise of the right to unilaterally refuse to perform the contract.

If the services were not provided by the contractor, but the customer paid an advance, then if either party refuses to fulfill the contract and if the paid advance is not returned, unjust enrichment arises on the contractor’s side. In this case, the contractor could incur any expenses directly related to preparation for their provision. In this case, the courts proceed from the fact that the executor is obliged to return the advance minus his expenses.

But at the same time, if unjust enrichment occurs on the executor’s side, interest may be accrued on the unreturned amount of the advance for the use of other people’s funds in accordance with Art. 395 of the Civil Code of the Russian Federation. Thus, each of the parties, entering into an agreement for the provision of paid services, subsequently has the right to withdraw from the agreement at any time, without paying losses and penalties provided for by the terms of the agreement.

Judicial procedure for terminating a contract

To terminate a contract in court, you must file a claim to declare the contract for paid services terminated. A pre-trial procedure for resolving a dispute is also mandatory; it is necessary to first send a claim or proposal to terminate the contract to the contractor, if he refused it or ignored it and the response period has expired (the period is specified in the contract or is 30 days), then with documents confirming pre-trial attempts dispute resolution by the customer, go to court.

The grounds for termination of a contract in court are:

a) failure to fulfill obligations stipulated by the contract (refusal to perform certain actions or discrepancy between the actions of the performer and the actions prescribed in the contract);

b) violation of deadlines for fulfilling obligations (the contractor delays the implementation of certain actions, postpones their execution, does not invest in the agreed terms without objective reasons);

c) low quality of services provided or provided;

d) a significant change in circumstances (circumstances have changed so much that if you knew about these changes, you would not have entered into this agreement).

Grounds required for termination of the contract

Termination of a contractual relationship may occur:

• at the initiative of the performer, if he is dissatisfied with the cooperation;
• at the initiative of the customer, if he has justified claims against the contractor.

The reasons for such actions may be:

• violation of agreements;
• other grounds prescribed in the Civil Code of the Russian Federation.

Note! One of the grounds for termination of contractual relations at the initiative of one of the parties may be force majeure circumstances. For example, a climate or man-made disaster.

Violation of the terms of the agreement leads to the fact that the injured party suffers financial and other losses. They need to be compensated. If the guilty counterparty agrees to do this without legal proceedings, this is permissible. Otherwise, the parties go to court to achieve justice.

Procedure for terminating a service contract in 2019

To terminate a contract for the provision of paid services, we recommend following the following algorithm:

Step 1: draw up a proposal to terminate the contract by agreement of the parties

The document is drawn up in simple written form, with the obligatory indication of the following points:

• Date and place of compilation;
• Information about the contract being terminated (number and date of conclusion);
• Data of the parties to the contract;
• Reason for termination of the contract;
• Date of termination of the contract;
• Information about the absence of mutual claims between the parties.

Step 2: Send the other party a proposal to terminate the contract

A proposal to terminate the contract can be sent to the other party in any way convenient for you: for example, by registered mail with acknowledgment of receipt.

If the other party refuses to terminate the contract, or if you do not hear from them within 30 days, you will need to apply to the court to terminate the contract.

Step 3: file a statement of claim for termination of the contract

Art. 131 of the Civil Code of the Russian Federation states that any statement of claim must indicate:

• Name of the court to which the application is filed;
• Details of the plaintiff (full name/name of organization, place of residence/location of organization, etc.);
• Data of the defendant (full name/name of organization, place of residence/location of organization, etc.);
• The plaintiff’s demands (in this case, the demand to terminate the contract for paid services);
• The circumstances on which the plaintiff bases his claims;
• Information on compliance with the pre-trial procedure for contacting the defendant;
• List of documents attached to the statement of claim.

Step 4: Go to Court

As a general rule, a statement of claim for termination of a contract for the provision of services for a fee is filed with the district court at the place of residence (location) of the defendant.

Step 5: attend the court hearing and receive a decision

If the court satisfies your demands, then after the court decision comes into force, the contract will be considered terminated and your obligations under it terminated.

Agreement on termination of the contract for the provision of services and its sample

Termination of a contract for the provision of services by mutual agreement occurs in the same manner as for other civil law agreements. A party that decides to terminate the contract for any reasons provided by law sends a corresponding notice to the other party. If within 30 days or another period specified in the contract, consent to termination is received, the parties sign an agreement, terminating the contract out of court.

The agreement to terminate the contract for the provision of services is drawn up in the same form as the contract itself, that is, in simple writing. It must indicate:

• Name: “Agreement on termination of the contract for the provision of paid services.”
• Date and place of conclusion of the agreement (it is enough to indicate the name of the locality).
• Data of the parties to the terminated agreement. Please note that they are indicated exactly as they were specified in the agreement, including the personal data of an individual, if he is a party to the agreement.
• Details of the contract being terminated (usually the number and date of conclusion).
• The date on which the contract expires. Usually the moment of signing the agreement itself is indicated. However, it should not be confused with the concept of compensation - with this option, the contract is terminated only after the transfer of compensation.
• Absence of mutual claims between the parties.

At the end, seals (if any) and signatures of representatives of both parties must be affixed. The above list is not exhaustive; the parties may, at their discretion, indicate additional clauses in the agreement that do not contradict the provisions of the law. A sample agreement can be downloaded on our website.

Types of activities classified as paid services

The Civil Code provides separate rules for different types of activities. Paid provision of services is regulated by Chapter 39 of the Civil Code of the Russian Federation, and it includes obligations to provide educational, consulting, medical, advertising, repair and many other services - this activity is universal in nature.

Issues of unilateral termination of a contract for the provision of services are regulated by Art. 782 of the Civil Code of the Russian Federation. The possibility of applying a unilateral refusal is determined by whether the subject of the agreement relates specifically to services. Transportation, storage and other types of work do not apply to such activities in a row - a full list of exceptions is given in paragraph 2 of Art. 779 of the Civil Code of the Russian Federation.

Many activities are carried out on the basis of special laws. Thus, apartment building management services are regulated by the Housing Code, banking services are regulated by the law on consumer lending. The same applies to insurance, education, and communications. Their provisions take precedence over the general norms of the Civil Code.

Refusal to execute and terminate the contract for the provision of services

Article 782 of the Civil Code of the Russian Federation directly provides for the possibility of unilateral termination of a contract for the provision of services, and it is formulated as follows. The customer may refuse to perform it at any time by paying the actual costs to the contractor. The contractor can also do this by compensating the customer for losses incurred. The legally correct name for such an action is refusal to perform.

The provision is formulated imperatively and, therefore, cannot be changed by the terms of the agreement. Unilateral refusal, or unilateral termination of a contract for the provision of services, is the legal right of the parties to the transaction; it does not require justification and does not carry any consequences. Payment of expenses and compensation for losses in this case is a condition of refusal.

At the same time, Art. 450 of the Civil Code of the Russian Federation regulates general rules in relation to any transactions and all types of activities, including on its basis it is possible to terminate the contract for the provision of services unilaterally. But in this case, the main role is played by the terms of the agreement between the counterparties with all the ensuing consequences.

Special rules take precedence over general rules, so nothing prevents the parties from terminating the relationship at any time by unilaterally refusing to continue it. The terms of the agreement providing for a prohibition or restriction of this right are considered void. This is confirmed by Resolution of the Presidium of the Supreme Arbitration Court of the Russian Federation No. 2715/10 in case No. A64-7196/08-23 dated 09/07/2010. The example is interesting in that it deals with the termination of a contract for the provision of legal services at the initiative of the customer.

The law office (executor) included in the agreement a clause on the payment of a penalty in the amount of 200,000 rubles in the event of termination of relations at the initiative of the agricultural cooperative (customer) or the commission of actions that make it impossible to perform the service. The customer refused it, the contractor filed a lawsuit to recover the penalty. The court satisfied the request, and two appellate instances confirmed the legality of the decision. However, the Supreme Arbitration Court of the Russian Federation indicated that the parties can provide for any terms of the agreement if they do not contradict the law. Since Art. 782 of the Civil Code of the Russian Federation establishes the right to unilateral termination of a contract for the provision of services for a fee by the customer, to the extent that any condition limiting this right is void.

Complex and easy to terminate contracts

Not only lease agreements - both for land plots and for non-residential real estate - are quite easily terminated unilaterally. By making purchases in an online store, you are, in fact, entering into an agreement - and it is quite easy to terminate it, unless, of course, it is an online store that is a scammer. Employment and employment contracts are quickly terminated.

Fact: the easiest way for an individual to terminate unilaterally is the purchase and sale agreement. The fact is that the rights of one of the parties - the buyer - are protected not only by the Civil Code, but also by the law “On the Protection of Consumer Rights”, and it is very harsh in relation to sellers. This rule also applies to service contracts.

Questions often arise about how to terminate a loan agreement. The reality is that “changes in circumstances important at the time of concluding the contract” (loss of job, decrease in income, receipt of an inheritance) are of little interest to the bank. Moreover, not all loan agreements have a clause on the possibility of early termination (loan repayment). Therefore, only through the court.

Termination of a service contract unilaterally: features

Many citizens confuse concepts such as “termination of a contract by one of the parties” and “refusal to perform a service.” They think it's the same thing.

However, there is a big difference between these concepts:

• The process of unilaterally canceling a contract is possible only through the court. The only exception is bilateral termination of the contract, that is, when both parties agree to cancel the agreement;
• refusal to perform a service may be unmotivated, but the decision to terminate the contract must be justified;
• termination of the contract for the provision of services in the event of its termination occurs from the moment the court decision is made. And in case of refusal to perform services, the termination of the contract occurs from the moment of notification of this to the other party.

How can a customer terminate a contract for paid services?

At any stage of the execution of a contract for the provision of paid services, the customer may need to terminate further cooperation with the contractor. The reason for this may be the inadequate quality of the services provided, the untimeliness of their provision, or simply a loss of interest in receiving them.

The general grounds for amendment and termination of any civil contract are provided for in Article 450 of the Civil Code of the Russian Federation.

The law divides the grounds for termination depending on:

• from the party that initiates termination of the contract,
• and the reasons for termination.
• In this case it is possible:
• termination of a contract at the initiative of one of the parties in court
• and unilateral refusal (motivated and unmotivated) from the contract (out of court).

In addition, the contract can be terminated by agreement of the parties (clause 1 of Article 450 of the Civil Code of the Russian Federation), as a rule, the least painful option for both parties.

How to terminate a contract by agreement of the parties

If the contractor agrees to terminate the contract by agreement of the parties and the terms of this agreement suit the customer, then this should be taken advantage of. Among the advantages of this option of terminating the contract are the following.

1. To terminate further cooperation with the contractor, there is no need to go to court. Moreover, the fact of termination of the contract for the provision of paid services by agreement of the parties excludes grounds for termination of this contract in court. This means that the contractor will no longer be able to refer to a significant violation committed by the customer and, as part of a claim for termination of the contract, demand the recovery of additional funds.

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2. The reason why the parties came to this agreement is immaterial.

However, termination of the contract by agreement of the parties is possible, unless the customer and the contractor have provided in the contract itself a ban on such termination (clause 1 of Article 450 of the Civil Code of the Russian Federation).

The form of the termination agreement must be the same as that of the contract for the provision of services being terminated (as a rule, this is a simple written form), unless otherwise follows from the law, other legal acts, the contract itself or customs (Clause 1 of Article 452 of the Civil Code of the Russian Federation ). Moreover, even if the contractor does not sign the agreement, but by his actual actions begins to fulfill the conditions specified in it (for example, stops providing services, returns the undisbursed advance), then the court may recognize the agreement as terminated by agreement of the parties on the basis of paragraph 3 of Article 438 of the Civil Code of the Russian Federation.

The moment of termination of the contract by agreement of the parties is determined by the moment of conclusion of this agreement, unless otherwise follows from its content and meaning (clause 3 of Article 453 of the Civil Code of the Russian Federation).

However, the customer needs to keep in mind that if he continues to fulfill the terms of the contract, it will not be considered terminated. In particular, such a situation may arise if the customer, after signing the agreement to terminate the contract, takes actions to accept services (sign relevant acts), make applications for their provision, pay for them or pay bills for the provision of services in the future.

Unilaterally

In addition to the fact that there is the most optimal and effective option for terminating the contract by mutual agreement of the parties, you (your partner) have the right to unilaterally terminate the contract for the provision of services.

Termination of a contract for the provision of services for a fee by the customer must be based on the legislative provisions of Article 779 of the Civil Code of the Russian Federation. Provided that neither party has violated the standards of the provided legal regulations, the issue can be resolved without recourse to the arbitration court.

The contract can be terminated unilaterally:

1. At the initiative of the customer, consumer of services.
2. At the initiative of the performer, service provider.

Termination of a contract for the provision of paid services by the contractor is determined by general provisions, but will include unique features and nuances.

General points include the condition according to which the initiator of termination is obliged to notify him in writing, one month before the termination of relations with a partner, of his refusal to cooperate.

A letter to terminate a contract for the provision of services is drawn up by the initiator in the direction of the person with whom the contract is being terminated.

It must be drawn up in writing and submitted against signature 30 days before the terms of the agreement are terminated.

If your relationship with your ex-partner is so difficult that he may refuse to sign the notification or for other reasons, you can use the services of the Russian Post.

Send the notification by registered mail with an attached inventory and postal receipt of receipt.

Expect a response to your claim within a month. If your notice is ignored, you can terminate the service agreement unilaterally.

When drawing up a notice, you need to start from those clauses of the service agreement that promised to provide certain benefits from concluding a contract, but never provided them.

Letter of termination of a service agreement, sample

You need to place a semantic and logical emphasis on this, and then express the requirement that violations and shortcomings be urgently eliminated, warning that if they are not eliminated, you refuse to use services of inadequate quality.

Please provide specific facts of violations. For example, that during the delivery of the item the established deadlines were repeatedly violated, indicating the expected and actual date of receipt of the item. To do this, it is advisable to track dates and collect receipts (other documents) confirming the presence of violations.

If we are talking about the quality of educational services, it would be appropriate to rely on the teacher’s competencies, which do not correspond to those promised in the contract. Often, additional education centers, promising high-quality services, recruit low-paid young specialists who have no experience in training students (preschoolers).

Due to the fact that these specialists do not have the appropriate category, the company saves money on paying specialists, but this is not taken into account when paying for services and providing advertising to parents of children. Pay close attention to this point. If there were disruptions to classes, please indicate these facts.

When receiving legal services, we can talk about major or minor damage that the client receives due to ineffective provision of services. The services of law firms are paid at a fairly substantial rate, which is based on no less serious prospects from interaction.

But be careful and carefully monitor the process at every stage. After all, the slightest violations in the conduct of your business can lead to major damage. If problems arise in your interaction with a legal service provider due to the ineffective performance of a representative, contact us with a request to restore the situation as a matter of urgency.

Here, most of all, you will need to rely on the provisions of the contract, which will not allow you to catch and arbitrarily interpret the situation.

Termination of a contract for the provision of services at the initiative of the customer may be carried out for the reasons previously indicated.

In addition, other claims may arise that prevented you from receiving a product of appropriate quality from the service provider.

If the customer is the initiator of the break, he must send a notification and wait for a response from the contractor.

It is likely that the contractor will consider the claims appropriate and will provide guarantees for their cancellation at his own expense.

In this case, you will not be able to terminate the contract, but will wait until the shortcomings are corrected. In this case, in the response to the notification, the contractor must indicate the time frame that he will need to correct the shortcomings.

After carefully reading the answer, you can do the following::

• agree in writing if the proposed deadlines correspond to those specified by you in the notice or differ from them downwards;
• agree if the specified deadlines do not correspond to those specified by you, differing upward;
• refuse if the specified deadlines do not meet your requirements or the contractor has requested additional payment for correcting the defects;
• act at your own discretion, within the limits of regulated actions.

Be especially careful when engaging in such interactions with a legal services provider. Understand that you have different levels of dedication to analyzing the nuances and subtleties of using this procedure. If we are talking about fundamentally important (property) issues, it would not be a bad idea to contact a specialist from another company.

Naturally, you will face additional financial expenses, but you need to weigh all the advantages and disadvantages from different sides and try to minimize the risks.

Termination at the initiative of the contractor is usually carried out against the backdrop of inaccurate payment for services. If you receive a claim of this kind, respond in writing that you will make the payment within the specified period or ask for an installment plan (deferment) of payments, indicating valid reasons that contribute to this.

You have the right to act at your own discretion in any case upon receipt of notice of termination of services. But keep in mind that if you ignore the claim notice, the contract will be terminated 30 days after it is sent.

Watch the video: in what cases can you terminate a contract unilaterally?

Current judicial practice on unilateral termination of a service agreement

Despite this, current judicial practice on the issue of unilateral refusal to execute a contract for paid services often takes the opposite approach. The following case can be cited as an example.

An agreement was concluded between the customer and the organizer, under the terms of which the organizer assumed obligations to perform aerial chemical work on the chemical treatment of agricultural crops in the customer’s fields. According to the terms of the contract, the organizer had to notify the customer one day in advance about the arrival time of the plane. The customer transferred an advance payment to the organizer. However, the organizer did not complete the work, and the customer no longer needed to carry it out. Therefore, he sent the organizer a termination agreement and demanded the return of the advance payment. Since the organizer did not react in any way, the customer decided to terminate the contract and return the money through the courts.

The court qualified the agreement concluded between the parties as a contract for the provision of services for a fee. He pointed out that Art. 310 of the Civil Code of the Russian Federation does not allow unilateral refusal to fulfill an obligation, except for cases provided for by law. Such cases include the provisions of Art. 782 of the Civil Code of the Russian Federation, which imperatively establishes the right of the parties to unilaterally refuse to perform a contract for the provision of services for a fee, and also that such a right cannot be limited by agreement of the parties. Therefore, the courts came to the conclusion that the contract is considered terminated from the moment the notice of its termination is received (resolution of the Central District Court of October 6, 2014 in case No. A36-2242/2013).

The agreement can be terminated on the grounds provided for in the law, other legal act or agreement. For example, according to the law, any contract can be terminated through court if there is a significant breach of the contract by the other party. Most often, the grounds for termination of a contract are indicated in the provisions of the Civil Code of the Russian Federation on a specific type of contract or in the contract itself. These may be grounds for either unilateral refusal of the contract or for its termination through the court. However, the easiest way is to terminate the contract by mutual consent of the parties. You can terminate the contract unilaterally on the same grounds that give you the right to refuse to fulfill obligations. This is because the general provisions on obligations also apply to obligations that arise from a contract. The grounds for refusal of a contract may be established by law or other legal act, as well as by contract. However, if only one of the parties conducts business activities, then the refusal can only be granted to its counterparty. Usually, the right to a reasoned refusal is allowed, which is associated with a violation of the contract by the counterparty or due to the occurrence of other circumstances. In this case, you can cancel the contract if the specified circumstances occur. But the refusal may not be due to anything (unmotivated refusal). In such a situation, you can refuse to fulfill the contract at any time without giving reasons. The following grounds for termination of a contract through court can be identified: · significant violation of the contract by the other party. The breach may be said to be fundamental in law or contract. For example, the parties may agree that a supplier's failure to deliver by more than five business days constitutes a material breach. In this case, to terminate the contract, you need to prove that the counterparty supplier committed this violation. If the violation is not named in the law or contract as a basis for termination, then it is necessary to prove to the court what the materiality of such a violation is; · other violation provided for by law or contract. For example, such violations of the lease agreement are provided for in paragraph 3 of Article 611 and Article 620 of the Civil Code of the Russian Federation. In this case, it is not necessary to prove whether the violation is significant; · the occurrence of other circumstances provided for by law or contract that are not related to the violation of the contract. For example, in the contract the parties may provide for such a basis as the counterparty changing the price unilaterally; · significant change in circumstances. There is little chance of terminating the contract on this basis, since it is very difficult to prove such a change. As a general rule, the parties can agree to terminate the contract at any time before its expiration. In this case, the basis for termination of the contract will be the mutual consent of the parties. Such consent is not enough to terminate a contract concluded in favor of a third party (in particular, a property insurance contract concluded not in favor of the policyholder), who expressed to the debtor the intention to exercise his right under the contract. To terminate such an agreement, you must additionally obtain the consent of a third party, unless otherwise provided by law, other legal acts or agreement. To terminate a multilateral agreement, the consent of not all parties, but the majority, may be sufficient, if the business agreement allows this and is not prohibited by law.

Notice of termination of the Service Agreement

Notice of termination of a contract for the provision of services is one of the most requested legal documents, which is necessary to send a message of intention to terminate (terminate) the Contract for the provision (provision) of services unilaterally (i.e., at the initiative of one of the parties to the contract).

In the prepared draft Notification, the Sending Party has the opportunity to indicate the desired date of termination , the reason for such termination, as well as other important points, in particular: the amount of debt (if any) and the procedure for its return; the procedure for returning the guarantee payment (if such was previously transferred to ensure the Customer’s fulfillment of obligations under the contract), as well as a number of other provisions.

Please note that you can exercise the right to unilaterally terminate a contract for the provision of services only if such a right is expressly provided for in the contract itself. Otherwise, termination of a previously concluded contract for the provision of services will be possible only by mutual agreement of the parties or in court.

How to use the document

The developed draft document can be used by internal lawyers of state (municipal) bodies, legal entities (both private and public sector), as well as individuals themselves in the event of the need to terminate a previously concluded contract for the provision of services.

The proposed document is suitable for terminating a contract for the provision of any type of service..

In order for the sent document to have legal force, it must be signed by the sender (performer or customer), and also certified by a seal (if the sender is a legal entity or state (municipal) body).

Please note that if there is no other address for sending correspondence between the parties to a previously concluded agreement for the provision of services, such Notification must be sent to the registered address of the individual’s place of residence or to the address of the legal entity (recipient of the Notification).

Separately, it should be noted that concluded contracts for the provision of services may provide for other requirements for the timing and procedure for sending such notifications, as well as for the procedure for terminating the contract as a whole.

Applicable Law

This Notice of Termination of a Lease Agreement has been prepared in accordance with the established practice of conducting internal records management by enterprises, organizations and institutions on the territory of the Russian Federation, as well as the practical requirements that are usually set for notices of this kind.

Procedure for terminating a contract for the provision of legal services

Any contract is an agreement between two or more parties to perform a certain activity; in our case, the parties are the principal and the lawyer of a company. Many organizations include additional conditions in such documents that make it difficult to unilaterally terminate a contract for the provision of legal services. This is done in order to retain its customer base. If you have a serious reason for canceling the agreement or, after concluding the agreement, you no longer need the assistance of a lawyer, it is recommended to act as follows:

• A claim is sent to the legal address of the organization with a request to terminate the contract for the provision of legal services. The request must be completed correctly and sent by registered mail with acknowledgment of delivery to a company employee. This claim will be evidence in court proceedings, if any, of a peaceful settlement of the sport between the parties.
• After receiving your letter, the employees of the law firm are required to draw up an agreement on the annulment of the contractual relationship between the organization and the principal. At the same time, you will have to pay for the services that employees have already provided to you.
• If there is no response from the law firm and you have not received a response within 30 days after sending them a claim, you have every right to file a claim in court to unilaterally terminate the contract for the provision of legal services. After considering all the materials of the case, the court will make a decision to cancel the signed agreements, obliging the law firm to return the money paid to you, and you, in turn, will pay for the services already provided by the specialists.

Grounds for unilateral termination of a contract for the provision of legal services

Any contractual obligations can be terminated in two ways: by mutual agreement of the parties and as a result of a court decision.

If we consider the first option, then it is possible to terminate the contract for the provision of legal services at any time at the request of the principal and the consent of the company employee, and this procedure must be carried out without violating the rights of the law firm.

If the opposite party to the conflict does not want to cancel the agreement and continues to provide unnecessary services without your consent, you should go to court to protect your own rights and interests. Unilateral termination of a contract for the provision of legal services with the help of a court will be possible only if the law firm violates the terms of the contract. As grounds for termination of a transaction for the provision of services, the court will take into account the following violations:

• Failure to fulfill the obligations specified in the official contract assumed by the law firm.
• Failure to provide services within the terms agreed upon in the signed contract.
• Low quality of services provided by the law firm under the contract.

In court, it is necessary not only to indicate the reason for the unilateral termination of the contract for the provision of legal services, but also to provide evidence that this factor actually exists.

Is it possible to return the money if there are no reasons to terminate the contract for the provision of legal services?

There are situations in which a citizen who has signed an agreement for the provision of services ceases to need to receive them. The reason may be personal circumstances, as well as simply the disappearance of the problem for which legal assistance was needed. It is possible to return the money if there are no reasons for terminating the contract for the provision of legal services, but the principal will need to pay the company for the services that were already provided before the desire to cancel the contractual obligations.

Sources:

1. https://nsovetnik.ru/dogovor/kak_pravilno_rastorgnut_dogovor_okazaniya_uslug/
2. https://pravo-sfera.ru/pravo/rastorzhenie-dogovora-ob-okazanii-uslug/
3. https://yurist-po-telefonu.ru/pravo/rastorzhenie-dogovora-ob-okazanii-uslug/
4. https://kraynev.ru/press-centr/publikacii/rastorzhenie-dogovora-na-okazanie-uslug/
5. https://allcontract.ru/dogovory/dogovory-okazaniya-uslug/rastorzhenie-dogovora-okazaniya-uslug.html
6. https://zaschita-prav.com/zayavlenie-o-rastorzhenii-dogovora-okazaniya-uslug/
7. https://piterlaw.ru/news/kak-zakazchik-mozhet-rastorgnutj-dogovor-vozmezdnogo-okazaniya-uslug-1272
8. https://www.centersoveta.ru/yurlikbez/rastorzhenie-dogovora-okazaniya-uslug-v-2018-godu-poshagovaya-instruktsiya/
9. https://www.arbitr-praktika.ru/article/234-red-zakazchik-uslug-uvedomil-ispolnitelya-ob-odnostoronnem-rastorjenii-dogovora-s-kakogo-momenta
10. https://www.wonder.legal/ru/modele/notice-termination-of-the-service-agreement

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