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The dissolution of the contract For the dissolution of the agreement, both parties must be cautious about the reasons for dissolution when signing the contract, and do not define the general breach of contract as the reasons for dissolution, let alone the matters prohibited by laws and regulations as the reasons for dissolution. Both parties should follow the principles of good faith, fairness and reasonableness and social public order and good customs when agreeing on the reasons for termination. The purpose of the contract termination system is to prevent the other party from causing greater economic losses in the case of breach of contract, that is, a self-help measure taken by the party with the right to terminate the contract to prevent the loss from expanding and safeguard its own interests. Therefore, first of all, the termination of the contract is generally only applicable to the case of unilateral breach of contract, but it is more complicated in the case of both parties' breach of contract, depending on which party's breach of contract is fundamental, and the exercise of the right of termination depends on the specific situation; Secondly, in the sense of self-protection, it is not necessary to terminate the contract as long as the other party breaches the contract, but to judge whether this breach is a fundamental breach of contract and whether it may cause greater losses to itself if it is not terminated. In other words, the exercise of the right to terminate the contract should meet the legitimate purpose; Finally, from the perspective of transaction cost, the termination of the contract means the failure of the transaction. As long as the contract is violated, the termination of the contract will bring heavy transaction cost to the market transaction and bring impact and destruction to the order and security of the market transaction.