A commission contract is an agreement reached between two parties based on trust. So can the entrustment contract be terminated at any time? Below, the editor of Fatu has organized and introduced the content of the entrustment contract that can be terminated at any time in this article. I hope it can be helpful to those who need it.
Can the contract be terminated at any time?
The client can revoke the delegation at any time.
If both parties do not trust each other or no longer need to handle the entrusted matters, the principal can unilaterally terminate the entrustment contract, and the entrustment can be forcibly terminated without the consent of the trustee. However, the trustee can require the principal to compensate for corresponding losses. The trustee may resign from the trusteeship at any time. The establishment of an entrustment contract requires both the trustor's understanding and trust in the trustee, and the trustee's trust in the client. If the trustee is unwilling to perform the entrusted affairs, the principal can terminate the contract without giving any reason.
(1) When one party exercises the right to terminate the contract, it shall notify the other party in an express manner, and the notice shall be effective when it reaches the other party. If there are more than one party to the contract, notice shall be given by or to all such persons. At the same time, once the termination notice takes effect, it is irrevocable.
(2) When there are several entrusting parties or entrusted parties, if some of the parties terminate the contract, what is the effect of the termination of the contract by others? Different situations should be distinguished in this regard: if the entrusted matter is indivisible due to its nature, the release of some persons shall also be effective for others. When the entrusted affairs can be divided, the act of each party to terminate the contract is independent of the effect of the other parties' revocation of the contract, and the entrusted relationship continues to exist without being affected.
(3) Can the right to terminate the entrustment contract at will be limited or excluded through a special agreement between the parties? Although there is no express provision, usually from the perspective of respecting the autonomy of the parties, the answer should be given in the affirmative. However, according to the provisions of the Civil Code (effective on January 1, 2021), the parties’ right to terminate the contract still exists. Furthermore, the agreement may be revoked if an unforeseen change of circumstances occurs during the commissioning process which makes it unfair to limit or exclude the right to arbitrary termination. No party may exercise the right to terminate when the entrusted matter has been completed.
(4) If one party terminates the entrustment contract under circumstances that are detrimental to the other party, it shall be liable for compensation for the losses caused to both parties. If the termination of the entrustment contract causes losses to the other party, the loss shall be compensated, except for losses that are not attributable to that party. "Matters not attributable to the party" refers to matters that are not attributable to the party terminating the contract. In other words, as long as the party terminating the contract is not at fault for the termination of the contract, he does not need to bear responsibility for the losses of the other party, regardless of whether the termination of the contract is attributed to the other party, a third party, or external force majeure.
It is also worth noting that even if the party rescinding the contract does not state any valid reasons when rescinding the contract, as long as there is no reason attributable to that party, he will not be liable for the losses of the other party. Because the right to terminate the entrustment contract is an arbitrary right to terminate, there is no need for a justifiable reason to exercise it.
With the rapid development of social economy and the deepening of market-oriented reforms, economic exchanges between people have become increasingly frequent, and professional requirements have gradually strengthened. In addition, due to busy work, many social affairs require entrustment. If it is completed by others, entrustment disputes are also increasing, such as unclear entrustment matters, exceeding the entrustment authority, exceeding the entrustment period, etc. Here is a brief introduction to the right to terminate the lawyer's entrustment contract at will. This lawyer will briefly introduce and analyze the right to terminate at will in an entrustment contract.