With a work contract, the contractor undertakes to build a house or repair a car for the customer, for example. Although contracts are supposed to be honoured, there may be situations where one or both parties want to terminate the contract early. How to proceed in such a case?
The Civil Code specifically defines a work contract in Sections 2586 to 2635. If the work contract is duly performed by both parties, the law does not allow unilateral termination of the work contract. However, the parties may always agree on an early termination of the work contract. The agreement should be in writing to avoid any future disputes or ambiguities. It should specify the date of termination and should also provide for the settlement of the activities already carried out.
In most cases, the works contract will not allow for termination, but it can be unilaterally terminated by withdrawal. If one of the parties breaches the agreed obligations, the contract may be terminated if the legal conditions are met. The conditions under which this is possible should be regulated by the work contract itself. It should specify what breaches of the contract may lead to withdrawal by one of the parties. If it does not contain such conditions, it is necessary to assess whether the grounds provided for in the new Civil Code have been met.
Such grounds include, in particular, so-called material breaches of contract, which may be, for example, unpaid invoices or failure to meet agreed payment terms. If the deadline for payment was agreed in the work contract, it must be complied with even without an invoice being issued. The customer will be able to withdraw from the work contract due to a breach of the work contract, for example, if the completion date agreed in the contract is not met. However, the withdrawal from the contract must be made without undue delay. If you delay, this may no longer be justified.
Another reason for the contractor to withdraw from the work contract is, for example, the failure of the customer to provide the necessary cooperation. On the other hand, the customer will be able to withdraw from the contract if the work is fundamentally defective. In each individual case, the justification for such a step must always be properly assessed. For this reason , we do not recommend using any model works contract or withdrawal template that can be found for download on the internet, as it may not be relevant to your case and the withdrawal could be invalid.
We will draw up a contract for the work or check the existing one. This way you can be sure that the delivery of the work will be legally sound and free from ambiguity. We will resolve the matter quickly, no matter where you are from in the country. You can pay after the service has been provided.
If the work contract does not comply with the requirements of the law, it could be found invalid. In most cases, however, it will be necessary for the contracting party to plead invalidity. If neither party objects, the contract will be seen as valid and will have to be followed.
If you want to terminate the contract for invalidity, you will need to object to the invalidity to the other party. However, if the other party disagrees, the validity of the contract would have to be finally determined by a court. The statute of limitations for raising any objection to the invalidity of the contract is three years from the date of its conclusion. Thereafter, it would no longer be possible to successfully claim nullity.
If you wish to terminate the work contract early, we will assess your case in a legal consultation. This is the only way to make sure that the contract is terminated correctly.
If you want to draw up or review a work contract under the new Civil Code (NCC), get to know our offer.
We will draw up a contract for the work or check the existing one. This way you can be sure that the delivery of the work will be legally sound and free from ambiguity. We will resolve the matter quickly, no matter where you are from in the country. You can pay after the service has been provided.
Ondřej is the attorney who came up with the idea of providing legal services online. He's been earning his living through legal services for more than 10 years. He especially likes to help clients who may have given up hope in solving their legal issues at work, for example with real estate transfers or copyright licenses.
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