Termination Clause Of Contract Of Entrustment

The 411st provision of the contract law provides that the principal or trustee dies, loses his or her capacity for civil conduct or fails to terminate, except otherwise, or is not terminated according to the nature of the entrusted affair.

Therefore, the parties to the entrustment contract should agree on the situation.

The 413rd provision of the contract law stipulates: "if a trust contract is terminated due to the death of the trustee, the loss of civil capacity or bankruptcy, the trustee's successor, legal agent or liquidation organization shall notify the trustor in time.

If the termination of a trust contract will damage the interests of the client, the successor, legal agent or liquidation organization of the trustee shall take necessary measures before the client makes the subsequent handling.

1. The conditions for statutory entrustment to terminate the entrustment contract.

1, the death of one or both parties.

If the client dies, the processing of entrusted affairs is meaningless to him, and the client can not pay attention to the instructions of entrusted affairs. If the trustee dies, then the trustor's reliance on the trustee's ability and experience fails, and the entrusted affairs can not continue.

Therefore, the death of a party or both parties shall be terminated.

The deaths here include the death of natural persons and the death of legal persons.

There are two kinds of deaths of natural persons: real death and declaration of death; the death of a legal person means the termination of a legal person.

2, one or both parties lose their capacity for civil conduct.

This refers to the loss of the ability of a person to act after some reason, such as mental illness.

3, if the party is an enterprise, the party is bankrupt.

A bankrupt enterprise is unable to continue to perform its contract because of its loss of credit, so the entrustment relationship shall be terminated.

However, this law is not mandatory, and the parties can either exclude or restrict the effect of this article (411st) by agreement.

For example, the two parties may agree that the trustee's death shall continue to exist, and the entrustment's successor or the other party's other party's entrustment shall continue to be entrusted to the status. If the trustor loses his or her ability to act, the agent shall inherit his status.

Two, the reason for the termination of the entrustment contract.

The reasons for the termination of the entrustment contract include general and special reasons.

The general reason is the termination reason of the general contract.

If the entrusted paction is completed, the entrustment is impossible, the duration of the entrustment contract is expired, etc.

Special reasons refer to the reasons for the termination of the entrustment contract, mainly for the following two reasons:

1. the party shall terminate the entrustment contract.

In the entrustment contract, both parties of the contract have the right to terminate the contract arbitrarily, and the contract can be terminated arbitrarily.

Whether it is a paid contract or a non commissioned contract, whether it is a fixed contract or an undetermined contract, no matter how far the entrusted paction is handled, the parties shall have the right to terminate the entrustment contract.

The 410th provision states: "the principal or the trustee may at any time rescind the entrustment contract."

2. a party's death, loss of civil capacity or bankruptcy.

In case of death or loss of civil capacity or bankruptcy of a party, the entrustment contract shall be terminated unless the parties have agreed otherwise or the nature of entrusted affairs shall not be terminated.

The 411st provision of the contract law stipulates: "if the principal or trustee dies, loses the capacity for civil conduct or fails, the entrustment contract shall be terminated, except that the parties have agreed otherwise or shall not terminate according to the nature of the entrusted affair".

This is the condition for the legal termination of the entrustment contract stipulated by law.

The entrustment contract is terminated by the death of a party, the loss of civil capacity or bankruptcy. This is the general principle.

Under special circumstances, the entrustment contract can also be terminated.

These special situations include two situations:

First, there is an agreement in the contract.

The parties may agree in the contract that the entrustment contract will not terminate even if one party has the death, the loss of civil capacity or bankruptcy.

For example, commissioned by lawyers.

The entrustment contract may stipulate that the agency action shall not be terminated because of the death of the client.

Two, the nature of entrusted affairs should not be terminated.

The contract law clearly stipulates that the entrustment contract due to the nature of entrusted affairs shall not be terminated, and shall not be terminated because of the death, loss of civil capacity or bankruptcy of one party.

Three, the consequences of the termination of a contract of entrustment.

1. the consequences of arbitrarily terminate the entrustment contract.

Any party of the contract of entrustment has the right to terminate at any time

。

However, if the loss is caused to the other party due to the cancellation of the entrustment contract, the party who cancelling the contract shall compensate for the loss, except that the matter can not be attributed to his own reasons.

For example, when the client is unconscious and unable to arrange the entrusted affairs separately, and the processing of the entrusted affairs is at a critical stage, the trustee terminates the contract, which is bound to cause damage to the principal.

Of course, if a party is terminating the contract because it can not be attributed to its own reasons, it may not be liable for compensation.

However, in such a case, the party who terminates the contract shall bear the burden of proof and prove that it is not attributable to the existence of his own reasons.

With regard to the liability for rescission of a contract of entrustment, the 410th clause of the contract law stipulates: "if a contract is lost to the other party, it shall compensate for the loss other than the matter that cannot be attributed to the party.

2. the effect of termination of the entrustment contract due to one party's cause.

because

In case of death, loss of civil capacity or bankruptcy, the termination of a trust contract will damage the interests of the principal. Before the entrustor's successor, legal agent or liquidation organization accepts the entrusted business, the trustee shall continue to handle the entrusted affairs.

The 412nd provision of the contract law stipulates: "the termination of a trust contract will damage the interests of the principal because of the death of the principal, the loss of civil capacity or bankruptcy, and the trustee shall continue to deal with the entrusted business before the entrustor's successor, legal agent or liquidation organization accepts the entrusted business.