Unilateral termination of contracts

Can a party unilaterally terminate a contract  but not have to compensate the other party for damage ?

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DMS Law office in Danang, Vietnam advises the time limit for initiating a lawsuit against contract violation ?

Unilateral termination of performance of contracts:

A party has the right to unilaterally terminate the performance of a contract without any compensation for damage when a party seriously violates its obligations if so agreed by the parties or so provided by law.

A party unilaterally terminating the performance of a contract must notify the other party immediately of its termination of the contract and must compensate if the failure to notify causes damage.

Where the performance of a contract is unilaterally terminated, it shall terminate from the time when the other party is notified of the termination. In such case, the parties are not required to continue to perform their obligations, except for agreement on fines for violations, compensation for damage and settlement of disputes. A party which has already performed its obligation may demand the other party to make payment for the performed obligation.

The aggrieved party shall receive a compensation for damage caused by the improper performance of obligation by the violating party.

If a contract is unilaterally terminated without any basis prescribed in Clause 1 of this Article, the party unilaterally terminating the performance of the contract shall be deemed to be the violating party and must perform civil liability as prescribed in this Code and relevant laws.

Limitation period for initiating legal action with respect to contracts.

The limitation period for initiating legal action to request a court to resolve a dispute relating to a contract is three years from the date on which the party entitled to request knows or should know that their lawful rights and interests are infringed (Articles 428, 429 The Civil Code No. 91/2015/QH13 dated November 24, 2015).

Related topics:

Compensation for damage caused by breach of contract

Penalty for breach of contract

Fines for breach of contract

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Phone: 0914 165 703 

Email: dmslawfirm@gmail.com

DMS LAW LLC
Director
(Signed)
Lawyer Do Minh Son