[Direct answer]In the Beijing area, if the other party commits a general breach of contract, the contract-abiding party usually cannot directly terminate the contract. According to Article 563 of the Civil Code of the People's Republic of China (effective January 1, 2021), if a party delays in performing the main obligation and fails to perform within a reasonable period after being urged, or if a party delays in performing the obligation or engages in other breaches of contract that make it impossible to achieve the contractual purpose, the party may terminate the contract. In other words, the threshold for statutory termination is relatively high, usually requiring the breach to reach the extent that the contractual purpose cannot be achieved, or the failure to perform the main obligation after being urged. For minor breaches that can be resolved through continued performance or compensation, direct termination is generally not allowed. In addition, if the contract stipulates termination conditions under specific circumstances, the right to terminate the contract may be exercised when the conditions are met, but the party must still notify the other party in accordance with the law, and the contract will be terminated upon receipt of the notice. It should be noted that terminating the contract without meeting the termination conditions may be deemed invalid or even constitute a breach of contract itself. Therefore, before claiming termination, it is necessary to carefully evaluate the degree of breach and the contractual provisions, and if necessary, consult a professional lawyer and retain evidence.

I. Problem Background and Typical Scenarios

After the other party breaches the contract, whether the contract-abiding party can directly terminate the contract is a common dispute in the performance of the contract. There are three typical scenarios: first, the other party delays payment or delivery, and the contract-abiding party wants to directly terminate the contract; second, the other party's performance has defects but has been basically completed, and the contract-abiding party claims to terminate the contract; third, the contract stipulates specific conditions for termination, and the parties have a dispute over whether the conditions have been met. When the Beijing District Court tries such cases, it will review whether the breach of contract results in the failure to achieve the purpose of the contract, whether the other party still fails to perform after being urged, and whether the agreed conditions for termination have been met. It is helpful for the contract-abiding party to understand the rules of statutory termination and agreed termination, so as to avoid bearing unfavorable consequences due to improper termination.

II. Key points of dispute

First, the boundary between ordinary breach of contract and fundamental breach of contract. Second, the applicable circumstances of statutory rescission. Third, the role and requirements of the notice procedure. Fourth, the method of rescission after the occurrence of the agreed rescission conditions. Fifth, the legal consequences of improper rescission. The core is to review the right of rescission under the framework of statutory rescission and agreed rescission, and clarify that ordinary breach of contract is usually not sufficient to rescind the contract, and it needs to meet conditions such as making the purpose of the contract impossible to achieve.

III. Professional analysis by Henglue Lawyers

From a practical perspective, whether the other party's breach of contract can be directly rescinded generally depends on the degree of the breach and the contractual provisions. The Civil Code stipulates typical circumstances for statutory rescission, including: the inability to achieve the contractual purpose due to force majeure; a party explicitly stating or indicating through its actions that it will not perform its main obligations; a party's delay in performing its main obligations and failing to perform within a reasonable period after being urged; and a party's delay in performing its obligations or other breaches of contract that render the contractual purpose unattainable. It can be seen that the threshold for rescission is generally related to whether the contractual purpose can be achieved. Minor breaches of contract can generally be remedied through measures such as continued performance, compensation for losses, or penalties, rather than direct rescission. Combined with a commissioned creation contract dispute handled by Henglue Lawyers, the client had completed and delivered the work as agreed and passed the acceptance inspection, but the other party had long delayed payment of the contractual amount. The attorney successfully claimed payment of the contractual amount and penalties and obtained the arbitration tribunal's support. This case shows that: when facing the other party's breach of contract, claiming payment and penalties is often a more direct and practical remedy; whether to rescind the contract should strictly comply with statutory or contractual conditions. If the contract stipulates specific rescission conditions, the rescission right holder can rescind the contract when the conditions are met, but should still notify the other party according to law, and the contract will be rescinded upon receipt of the notice. If rescission is carried out without meeting the conditions, it may be deemed invalid and even constitute a breach of contract on the part of the rescinding party, who will bear corresponding liabilities. Therefore, before deciding to rescind the contract, the contract-abiding party should carefully evaluate the nature of the breach, the contractual provisions, and the evidence to choose an appropriate remedy path.

IV. Practical suggestions and legal basis

Action suggestions: First, assess whether the other party's breach of contract results in the failure to achieve the contractual purpose; Second, for delayed performance of the main obligation, first issue a notice of default and retain the proof of the notice; Third, check whether the contract stipulates the conditions for termination, and determine whether the conditions have been met; Fourth, when deciding to terminate the contract, notify the other party in accordance with the law and retain the proof of delivery; Fifth, when necessary, choose more appropriate remedies such as claiming payment, breach of contract penalties, or compensation. For corporate commercial and contract disputes, you can refer to the relevant provisions of the Civil Code of the People's Republic of China.Business and contract disputes in enterprisesFor matters related to contractual provisions and procedural design, you may refer to the following documents for reference:Intellectual property and corporate consultantsLegal basis: Articles 563 and 565 of the Civil Code of the People's Republic of China (effective as of January 1, 2021). The specific application shall be subject to the currently effective laws, regulations, and judicial decisions.

5. Henglue Law Firm's Reminder

Firstly, general breaches of contract usually cannot directly terminate the contract. Secondly, statutory termination typically requires conditions such as the inability to achieve the contractual objectives. Thirdly, the party who fails to perform the main obligations of the contract should first give a notice of default. Fourthly, improper termination may constitute a breach of contract itself. For contract disputes, you can seek legal assistance through the following channels:Business and contract disputes in enterprisesThe acquisition of services involves the integration of terms and proceduresIntellectual property and corporate consultantsFor matters involving the enforcement of compensation, you can refer to the following document for reference.Creditor's rights and debts, and enforcement casesColumn.

VI. Frequently Asked Questions

Q1: Can I directly terminate the contract if the other party generally breaches the contract?

Generally, it is not possible. The legal threshold for terminating a contract is quite high. It usually requires circumstances such as the breach of contract resulting in the failure to achieve the purpose of the contract, or the delay in performing the main obligations and the failure to perform them after being reminded, etc.

Q2: Under what circumstances can the contract be terminated?

It includes statutory circumstances such as the inability to achieve the contractual purpose due to force majeure, the other party's explicit refusal to perform the main obligations, and the failure to perform the main obligations after being urged, as well as the fulfillment of the agreed upon conditions for termination.

Q3: Is it necessary to send a reminder to the other party when there's a delay in performance?

If it is a delay in performing the main obligation, it is usually necessary to first issue a reminder and grant a reasonable time limit. If the other party still fails to perform the obligation after the reminder, the party may claim the right to rescind the contract and retain the reminder certificate.

Q4: What are the risks of directly terminating the contract?

It may be deemed as a rescission of the contract, which may even constitute a breach of contract on the part of the party involved and result in corresponding liabilities. Therefore, it is necessary to carefully evaluate the situation and preserve evidence before claiming rescission of the contract.

Q5: What can I do if I don't terminate the contract?

You can request the other party to continue to perform the contract, claim breach of contract penalties, or seek compensation for losses, etc. Choosing a more practical remedy is often more beneficial than forcibly terminating the contract.

The above answer is based on the judicial practice in Beijing. The judicial interpretations in other provinces and cities may vary. For specific cases, please refer to the local rules and evidence situation.

If you are currently facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the relevant evidence materials, so as to avoid missing the statutory time limits. →Business and commercial legal services·Attorney Xiong Binrong·Beijing Henglue Law Firm

Disclaimer: This article is compiled based on current laws and regulations and publicly available adjudication rules, and is provided for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. If you encounter disputes, please consult a practicing lawyer in time.