The supplementary agreement on termination of the contract is aimed at terminating or amending the respective obligations. As essential conditions for the occurrence of such transactions, any circumstances that the parties consider necessary for this should be recognized.
An agreement to terminate the contract (or to amend it), the composition of its terms and conditions is formed in accordance with the legal purpose of the contract itself. For example, when fixing the conditions for the provision of services for a fee, their result cannot be canceled or changed. That is, the quality of services remains unchanged.
The conditions on the subject of the supplementary agreement are formed from two elements: target and mandatory. The second concept is a sign of the quality of the relationship between the parties, determines the type and nature of this relationship. The target element includes benefits (intangible and tangible), the achievement of which is considered the legal objective of the contract-transaction. A sample agreement to terminate the contract is enshrined in law.
The quantitative target criterion may not coincide with the material component of a relationship. So, the agreement on termination of the contract of commission or onerous services excludes the execution of material results. In this regard, the inclusion of the relevant paragraph on the achievement of the result is not mandatory.
The structure of the target component of the conditions on the subject of the original contract forms the possibility of its termination or change through the transformation of this specific part of the conditions on the subject. Thus, a change in the immediate object of the activity does not lead to the termination of obligations, but to a change in the conditions for their fulfillment. The change of the indirect object, on the contrary, provides for an agreement to terminate the contract, and not to change it. So, changing the object of insurance can only be carried out by canceling the previous obligations.
The agreement on termination of the contract does not include a condition on the withdrawal of the target component. If the previous obligations are at the stage of fulfillment, then the target component acts as the object of fulfillment. In this regard, the termination should contain an indication of the cancellation of this performance. In this case, the target component ceases to exist automatically, being an element of the previous obligation. In this case, it is incorrect to use the concept of “removal of the target element”, since only “cancellation of execution” should be considered.
The most common type of termination of an agreement through an agreement is the cancellation of the forthcoming performance of all obligations at the same time. Both components that are at the execution stage and those that should be executed in the future are terminated. The terms on the termination of fulfillment of all obligations under the contractual terms are a mandatory component of the subject of the agreement on termination of the contract. This circumstance applies both to the behavior of the debtor and to the obligatory element.
Along with this, all rights on the claims of creditors that correspond to the canceled execution cease to exist, including the rights on obligations, the fulfillment of which has already begun.
A separate group is formed by agreements on termination of contracts, which are aimed at replacing the obligatory component of the conditions on the subject of the original (main) contract.
With any change in the obligatory component (that is, a change in the type of activity), one obligation ceases to exist and a new one arises. A classic example of such a cancellation is innovation. Due to the fact that novation is an agreement of the parties to an existing agreement, it is qualified as a type of agreement to terminate or amend existing obligations.