Termination of the contract by the breaching party in Civil Code of China

Abstract

Civil law and regulations governing civil legal relations are an inportant issue in the legal system of every country in the world. Understanding the authority to end a contract and the possibilities of terminating it, especially by a party that does not fulfil its terms in good faith, is very relevant in the realities of the modern world. This study aims to investigate the fundamental principles and possibilities of contract termination for a party in breach of obligations under the Civil Code of the People’s Republic of China (PRC). To achieve this goal, the author uses systemic and structural, dialectical, historical and formal legal methods, comparative legal methods, analytical and synthetical, and others. The investigation established that the status of a contract is crucial in the modern world, including in the PRC. According to international customs, contracts must be unconditionally fulfilled, but sometimes situations arise that lead to early termination or cancellation of a particular contract, so the results of this study can be a foundation for a more fundamental comprehension of the conditions and possibilities of termination of a contract by the party that has breached it, while minimising losses and risks in the future. The results of this study will be especially relevant for potential partners planning to sign a contract in China, as they will help them understand the specifics of compliance with the contract terms and conditions and help them take legally correct actions in case the contract terms are no longer fulfilled. It is also important to understand how to avoid similar situations when signing civil contracts and what needs to be done to fulfil the contract in full