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Circumstances and consequences for the parties to terminate the contract

Updated: Mar 30, 2018 english.legalinfo.gov.cn Print

The parties to the contract may terminate a contract in any of the following circumstances: (1) force majeure frustrated the purpose of the contract; (2) before the time of performance, the other party expressly stated or indicated by its conduct that it will not perform its main obligations; (3) the other party delayed performance of its main obligations, and failed to perform within a reasonable time after receiving demand for performance; (4) the other party delayed performance or otherwise breached the contract, thereby frustrating the purpose of the contract; and (5) any other circumstance provided by law occurred.

In accordance with the provisions of the Contract Law, upon termination of a contract, a performance shall be discharged if the contract has not been performed. If the contract has been performed, a party may, in light of the degree of performance and the nature of the contract, request the original status be restored or otherwise remedy the situation, and is entitled to claim damages.


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