Chapter 16: Termination of Contract

Question 1

Dissolution (definition)

Answer 1

Dissolution of contract is different than nullity/annulment (refer to an anomaly that exists at the time of entering into the contract, while dissolution refers to the time of performance).

Question 2

Dissolution for non-performance (hint: doorknobs)

Answer 2

One of the parties does not fulfill his obligations

The innocent party may seek dissolution or fulfillment (or in both cases, compensation)

The breach must be of some (slight) importance according to good faith.

Question 3

Out-of-court dissolution (dissolution for non-performance)

Answer 3

Alternatively, the contract can be dissolved out of court with a notice to perform (automatic), explicit i.e. saying it will be dissolved if door handles are not complete (declaration needed), or where time is essential (declaration NOT to dissolve required).

Question 4

Dissolution for supervening impossibility

Answer 4

Impossibility due to cause not imputable to him

In the case of total impossibility, the creditor cannot demand performance. IF partial/temporary they may demand partial performance or dissolve contract.

If an immovable is destroyed, it does not release purchaser from payments.

Question 5

Dissolution for excessive onerousness

Answer 5

Performance became onerous due to extraordinary events

If the situation is envisaged by the contract, it cannot be dissolved.

Only the person who owes performance can seek dissolution of contract (party at interest).

Does not apply to aleatory contracts.

Question 6

Resignation of contract (hint: entered into because of danger)

Answer 6

There is a certain amount of risk associated to contracts, the law can only resign the contract in the case of exploitation or danger.