How to Terminate a Contract?
"How can I terminate a contract?" This is done through a termination declaration. It can be sent by letter or email if the contract was concluded digitally. Termination occurs when the declaration reaches the other party.
Termination
Termination ends the contract. This creates an obligation for the contractual parties to undo what was agreed. Everything received must be returned.
The general rule is that you can only terminate if the other party fails to fulfill the contract. Additionally, the failure must justify termination. The other party must also be in default if performance is not permanently or temporarily impossible. Termination cannot be done arbitrarily.
Termination Declaration
Once you have determined that you can terminate, the next question is how to do it. Always first check what was agreed upon regarding this. For example, in the contract itself or in the applicable general conditions. Sometimes, there are specific clauses about termination.
If there are no specific agreements, the legislation on termination applies. Termination does not occur automatically. A written declaration (termination declaration) from the party wishing to terminate is required. If the contract was concluded digitally, it can also be terminated digitally, with an electronic declaration, such as an email or a form on the seller's website. This is common in online purchases.
Naturally, you must send the termination declaration to the other party. Termination occurs when the declaration reaches the other party. The other party does not need to respond or agree to the termination for it to take effect.
Attention: if you are not authorized to terminate (for example, there is no failure justifying termination), the termination declaration will have no legal effect. The contract will remain in force.
Content of the Termination Declaration
In the termination declaration, you must clearly indicate that you are terminating the contract. To be complete, also mention what you want to happen, such as the return of the amount paid, indicating the bank account for the refund.
You do not need to mention the reasons for termination in the declaration, but it is advisable to do so and clearly explain why you are terminating the contract. This reduces the chances of the other party disagreeing with the termination. A consumer can terminate an online purchase within 14 days without needing to justify.
Disagreement with Termination
It is not uncommon for the other party to disagree with the termination, especially in cases of doubt. If they cannot reach an agreement, a judge may decide on the termination of the contract or declare that the previous termination declaration was valid and that the contract was terminated.
Want to terminate a contract? On our website, you will find various document templates for termination. For example, a template letter to terminate an online purchase. Other termination documents can be found by searching for the word "termination" on our site.
