Effective Point of Arbitrary Termination of Indefinite Continuous Contract
The determination of the effective point of the arbitrary termination of the indefinite continuous contract not only involves the protection of the reliance interests of the contractual counterparty,whether the contractual counterparty has enough preparation time to seek for a substitute transaction,but also directly affects whether the party that terminates the contract needs to bear the responsibility of damages as well as the scope of the damages,which is the most important issue in this regime.The expression"the parties may rescind the contract at any time"in this paragraph is ambiguous,and it is very easy for the parties and the judge to have the misunderstanding that"the parties may at any time notify the other party or sue for rescission of the contract,and the contract will be re-scinded as soon as the notice of rescission or a copy of the statement of claim reaches the other party".Lack of clar-ity in legal and judicial interpretations leads to ambiguity of academic views,and there is also a marked difference in the position of judicial decisions.Most of the judges determined that the contract is terminated when the notice reaches the other party,and there is a lack of scientific and reasonable judgment on the determination of"reasona-ble period",and the problem of"different judgments in the same case"is serious,which results in the interests of the counterparty of the contract being unprotected.The notice of arbitrary termination of indefinite continuous con-tract is a notice of termination with an effective period,and the notice of termination is not effective until the expira-tion of a reasonable period.The effective point of arbitrary termination of indefinite continuous contract shall be the expiration of a reasonable period after the notice of termination reaches the other party.First,it provides the most direct and adequate protection for the reasonable reliance of the other party to the contract on the continuance of the contractual relationship for a reasonable period.Secondly,it gives the other party to the contract the necessary prep-aration time to seek a substitute transaction,avoids the sudden termination of the contract,which will cause the other party to lose the basis of daily life and business,and maintains the stability of the contractual relationship.Thirdly,it can reasonably avoid the complex issue of damages due to failure to give notice within a reasonable peri-od.In the absence of either agreement by the parties or special provisions of the law,the judge shall objectively measure the"reasonable period"in terms of the duration and performance of the contract,the degree of reliance of the parties on the contract,and the ease or difficulty of finding a substitute transaction,to strike a proper balance between the interests of the parties to the contract.The longer the duration and the better the performance of the in-definite continuous contract,the higher the degree of reliance of the other party on the contract,and the more diffi-cult it is for the other party to seek a substitute transaction,the longer the reasonable period should be.To summa-rize,the effective point of the arbitrary termination of indefinite continuous contract is the expiration of a reasonable period of time after the notice reaches the other party,and the"reasonable period"should be scientifically and rea-sonably determined,so as to measure the time of termination of the contract,to strike a proper balance between the principle of strict adherence to the contract and the right of individual autonomy,and to strike a proper balance be-tween the interests of both parties to the contract.
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