If there is no agreement on the main terms of the contract, the legal consequences will depend on the specific circumstances. Generally speaking, the contract cannot be performed normally because there is no basis for negotiation. At this point, both parties may be liable for breach of contract and need to make compensation for breach of contract. In addition, according to the Contract Law of People's Republic of China (PRC), if the main terms of the contract are not agreed, the contract shall be deemed invalid.
I. This contract is invalid.
If the main terms of the contract are not agreed, the contract shall be deemed invalid. This means that there is no legally binding relationship between the two parties, and the rights and obligations stipulated in the contract are no longer applicable. If there is any transaction or investment, both parties may need to negotiate to solve the aftermath to avoid further disputes and losses.
Second, the liability for breach of contract
If the main terms of the contract are not agreed, and the contract is invalid, both parties may need to bear corresponding liabilities for breach of contract according to the breach clauses agreed in the contract. Liability for breach of contract usually includes payment of liquidated damages, compensation for losses, etc. According to the Contract Law of People's Republic of China (PRC), if both parties agree on liquidated damages in the contract, the breaching party shall pay the liquidated damages as agreed; If there is no agreed penalty, the breaching party shall compensate the other party for the losses caused according to the actual situation.
Third, litigation settlement.
If the two parties cannot reach an agreement on the main terms of the contract and resolve the dispute through consultation, either party may bring a lawsuit to the court. According to the provisions of the Civil Procedure Law of People's Republic of China (PRC), the court will make a ruling based on facts and legal provisions to resolve contract disputes. In the process of litigation, both parties need to provide evidence to prove their claims and demands, and make corresponding compensation and compensation according to the court's ruling.
To sum up:
The legal consequences of failing to reach an agreement on the main terms of the contract may include invalidity of the contract, liability for breach of contract and litigation settlement. In order to avoid this situation, it is suggested that the parties must carefully review the terms of the contract and reach a consensus when signing the contract. Problems should be solved through consultation in time, and professional lawyers should be consulted to avoid unnecessary disputes and losses.
Legal basis:
Article 52 of the Contract Law of People's Republic of China (PRC): In any of the following circumstances, the contract is invalid:
(1) One party enters into a contract by means of fraud or coercion, which harms the interests of the state;
(2) Malicious collusion that harms the interests of the state, the collective or a third party;
(3) Covering up illegal purposes in a legal form;
(4) damaging the public interest;
(5) Violating the mandatory provisions of laws and administrative regulations.
Article 64 of the Civil Procedure Law of People's Republic of China (PRC): The parties have the responsibility to provide evidence of their own claims. The people's court shall investigate and collect evidence that the parties and their agents ad litem cannot collect on their own due to objective reasons, or evidence that the people's court considers necessary for hearing a case. The people's court shall comprehensively and objectively examine and verify the evidence in accordance with legal procedures.