Case analysis questions 1. Can the reason for company A's suspension of performance be established? 2. Can Company A terminate the contract? Defend what

A company to suspend the performance of the contract must also be clear about a condition, that is, whether there is definite evidence that the operating conditions of company B have deteriorated. If there is evidence, it has the right to suspend the performance of the contract, which is the exercise of the right of uneasy defense in contract law. Company B has the right to terminate the contract without providing guarantee after receiving the notice.

the basis of law

Article 68 If the party who performs the debt first has definite evidence to prove that the other party has one of the following circumstances,

Performance may be suspended:

(a) the business situation has deteriorated seriously;

(2) Transferring property or withdrawing funds to avoid debts;

(3) loss of business reputation;

(four) there are other circumstances that have lost or may lose the ability to perform debts.

If a party suspends performance without definite evidence, it shall be liable for breach of contract.

Article 69 If a party suspends performance in accordance with the provisions of Article 68 of this Law, it shall promptly notify the other party.

After the other party provides appropriate guarantee, it shall resume performance. After the suspension of performance, the other party fails to resume performance within a reasonable period of time.

In case of force majeure and failure to provide appropriate guarantee, the party that suspends performance may terminate the contract.