Regulations on modification and termination of civil contracts

1. Modification of civil contracts

Even though the contract has been concluded and is in effect, in order to implement the contract in accordance with the actual circumstances and conditions of each party, the parties can still agree to amend the contract, except in cases where it is legal. The law has different provisions. For example, parties entering into a contract for the benefit of a third person may not amend the contract if the third person has agreed to enjoy the benefits (specified in Article 41 7 of the 2015 Civil Code ).

Modifying a civil contract is when the parties have entered into a contract of their own free will and agree with each other to deny and change some terms in the content of the contract concluded.

After the contract has been amended , the parties shall perform the contract according to the unmodified parts of the previous contract’s contents along with the newly amended contents at the same time, together resolving other consequences. of amending a contract.

The form of recording contract modifications must be consistent with the form of the signed contract and “the modified contract must comply with the form of the original contract” (Clause 3 , Article 421 of the Ministry of Finance) . Civil Law 2015 ). 

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illustration. Regulations on modification and termination of civil contracts

2. Termination of civil contracts

As part of the laws of movement of things and phenomena in general, civil contracts also go through stages of origin, development and termination. However, unlike other things and phenomena , civil contracts always arise from the conscious actions of the subjects. Therefore , the events that terminate a civil contract are not events that arise due to the movement of nature , but are events that arise from the conscious behavior of the person . subjects or as prescribed by law. The grounds for terminating the contract are also the grounds for terminating civil obligations (think contractual obligations).

According to Article 422 of the 2015 Civil Code  , civil contracts terminate in the following cases:

2.1. When the contract has been completed

When the parties to the contract have performed the entire content of their obligations and , therefore , each party has satisfied their civil rights , the contract is considered completed .

2.2. The contract is terminated by agreement of the parties

In cases where the obligated party is unable to perform the contract or if the contract will cause great material loss to one or both parties, the parties may agree. termination of contract. The signed contract is considered terminated at the time the parties reach the above agreement .

2.3. The contract will terminate when the individual entering into the contract dies, the legal entity or other entities terminate, and the contract must be performed by those individuals, legal entities or entities.

It is important to understand that not all cases where the individual entering into the contract dies or the legal entity or other organization entering into the contract terminates will the contract be considered terminated. According to the above basis, only those contracts that, due to the nature of the obligations arising from that contract or where the parties have agreed in advance, are the person obligated to directly perform that obligation or only the person with the obligation. new rights to enjoy benefits arising from the contract, then when they die , the contract will end. For example, A signs a contract with a visual artist , B. Accordingly, B. must complete an artistic statue for A in A’s garden. If the contract has not been performed or has not been completed, If B dies, that contract automatically terminates.

2.4. The contract terminates when one party unilaterally terminates performance of the contract

In addition to the contract being terminated according to the grounds specified in Article 423 of the 2015 Civil Code  , the contract also terminates when one party unilaterally terminates the performance of the contract. When one party violates the contract, the other party has the right to unilaterally terminate the contract. The application to terminate the performance of the contract is made according to the provisions of Article 4 , 28 of the 2015 Civil Code . When unilaterally suspending a contract, the unperformed part of the contract will terminate , meaning the contract is considered terminated from the moment the violating party receives notice of contract termination from the violated party. When the contract is terminated, the obligor does not have to continue performing its obligations but the parties must pay the part of the contract that has been performed.

2.5. The contract terminates when one party cancels the contract

In order to improve discipline in contract implementation, the law allows the parties to the contract to agree that one party has the right to cancel the contract if the other party violates the contract . Therefore, in those cases , the party violating the contract has the right to unilaterally cancel the contract and request the violating party to compensate for damages. When one party cancels the contract, the contract is not effective from the time of conclusion. The parties must return to each other the assets they have received. If they cannot be returned in kind, they must return in money.

2.6. The contract cannot be performed because the object of the contract no longer exists and the parties can agree to replace another object or compensate for damages.

In cases where the object of the contract is a specific or single object but due to loss or destruction or other reasons , that object no longer exists , the contract is automatically valid. considered terminated at the moment the object that is the subject of the contract no longer exists. However, the parties may agree to maintain the contract by replacing the no longer available item with another item .

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