Termination - Term Overview

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Termination is the action of nullifying a contract or legal act. In this way, the obligations and / or rights of the parties cease to be in force.

In other words, a termination is a formal act by which a legal relationship ceases to have validity or, simply, is annulled.

The termination may be due to different causes, either, for example, by the disagreement of one of the parties that reports having been harmed by the breach of one of the clauses of the agreement. Likewise, it may be due to events that are beyond the control of the contracting parties, such as the death of one of them.

Thus, in some cases the party seeking termination will have to appeal to the corresponding authorities to justify its position and request that the contractual relationship be declared invalid.

The termination can be applied to an employment contract, to the contracting of a service, to the agreement signed between the State and a private party for the development of a public work, among others.

Another point to keep in mind is that contracts usually contain clauses where the reasons for termination are explained.

Likewise, it's important to note that the legislation of each country regulates the termination issue differently, and in some cases it may be more flexible. For example, when an employer wants to rescind an employment contract.

Types of termination

There are three types of termination:

- Voluntary: There is an agreement between the parties to terminate the legal bond.
- Judicial: The annulment is issued by the competent authority, usually a body of the Judicial Power. For example, before the claim of one of the parties who claims to have suffered a loss.
- Fortuitous: It occurs for reasons beyond the control of the contracting parties. For example, a natural disaster that leaves the debtor unable to meet a loan payment.

Example of termination

Let's imagine that a person is hired to work in a newspaper, and the agreement specifies that they cannot publish in another media.

Therefore, if the contracted party breaches said clause, the company could declare the termination of the employment relationship and dispense with the worker's services.

Another example of termination could be when the State has signed an agreement with a private consortium to develop the expansion of an airport. So, suppose that after a few months the concessionaire has not fulfilled the expected progress of the project. Faced with this situation, the Government could find a way to terminate the contract.

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