Termination of public contracts and agreements

Termination of public contracts and agreements

Legal representation on termination of contracts and agreements concluded as a result of public and corporate procurement is one of the important areas of public and corporate procurement practice services of BRACE Law Firm.

Lawyers at BRACE Law Firm specialize in providing legal support for public and corporate procurement and have many years of experience in protecting procurement participants in the area of legal support in resolving disputes over termination of public contracts.

Disputes on the termination of public contracts and agreements under

As a general rule of Russian civil law, a public contract can be terminated by agreement of the parties or by the decision of one of the parties if the other party substantially violates obligations to fulfill the terms of the contract, as well as in cases directly established by applicable law and the contract (contract).

In accordance with the Federal Law dated 05 April 2013 N 44-FZ “On the Contract System in the Sphere of Procurement of Goods, Work, and Services to Ensure State and Municipal Needs”, termination of a contract is allowed: by agreement of the parties; by a court decision; in case of unilateral refusal of a party to fulfill a contract in accordance with Russian civil law. Moreover, the law establishes various grounds for the customer and supplier to initiate termination of the contract. In particular, the customer has the right to terminate the contract unilaterally if there is a significant violation of the deadlines for its execution, by the supplier, when the supplier submits poorly executed results of the contract, or if a supplier submits false information about itself as a counterparty or about delivered product (service, work). A supplier can initiate termination of a contract only in case of force majeure circumstances or unreasonable refusal of a customer to accept the results of the contract.

Federal Law of July 18, 2011, N 223- FZ “On Procurement of Goods, Work, Services by Certain Types of Legal Entities” did not regulate the termination of contracts concluded as a result of corporate procurement. In this regard, the indication in the contract of conditions for its termination is most important to prevent disputes regarding the validity of such termination.

Due to the fact that in some cases, unilateral termination of a contract may entail an inclusion of the supplier in the Register of Unscrupulous Suppliers, the competent resolution of disputes in this category not only protects the rights of the parties but also helps to avoid the negative consequences associated with such termination.

Procedural aspects of disputes on the termination of public contracts and agreements

The Law N 44-FZ establishes a requirement for mandatory notification of a counterparty to terminate a contract. Upon elimination of violations of the terms of the contract within ten days from the date of such notification, such notification shall be canceled. If the counterparty disagrees with the termination of the contract, the dispute is subject to judicial review by filing an appropriate application with the court.

The conditions on the procedure for terminating the contract concluded on the basis of Law N 223- FZ are to be indicated directly in the contract. Moreover, such conditions must comply with the requirements of the Civil Code of the Russian Federation. In general, the procedure for termination of the contract will also require the party initiating such termination, a preliminary notification to the other party. In the absence of the consent of the parties to terminate the contract, the dispute shall be considered in court.

Disputes of this category are subject to arbitration.

A feature of the consideration of judicial disputes on the termination of contracts and agreements under the 44-FZ and 223-FZ is a wide range of legal issues to be investigated. Such issues include: the terms of the contract or contract, actions that necessitated termination, the quality of the contract, the good faith behavior of the parties and much more.

In this regard, legal support in resolving disputes on termination of contracts and agreements concluded as a result of public and corporate procurements is important and necessary in order to carry out legally verified actions aimed at protecting the rights of the party to the terminated contract/agreement.

Legal services

  1. Legal analysis of documents and other evidence submitted by a client in a dispute on termination of contracts and agreements under 44-FZ and 223-FZ
  2. Consultation of lawyers and attorneys at BRACE Law Firm regarding the prospects for judicial and/or pre-trial settlement of disputes regarding the termination of contracts and agreements under 44- FZ and 223- FZ
  3. Legal support of the claim dispute settlement procedure
  4. Development of a strategy and tactics for protecting a client in court on disputes related to the termination of contracts and agreements concluded as a result of public and corporate procurements
  5. Pre-trial preparation, including the formation of evidence
  6. Preparation and filing of a statement of claim (application) and other procedural documents in a judicial dispute on the termination of contracts and agreements under 44-FZ and 223- FZ
  7. Representation of interests, case management in court by BRACE lawyers and completion of all necessary procedural actions
  8. Coordination of several parallel trials (if necessary)
  9. Preparation and support of the conclusion of amicable agreements concluded at various stages of the trial
  10. The appeal of judicial acts in the courts of appeal, cassation and supervisory review
  11. Support of enforcement proceedings
  12. Other legal assistance in litigation related to the termination of contracts and agreements under the 44- FZ and 223- FZ

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