The Termination Right Of Continuous Contract

As Chinese reform enters a period of hard work and deep water,the problems touched by the reform gradually turn from the pro level to the deep level.Those problems are reflected in the economic life of China,and one of the problems reflected is the disconnection between civil legislation and economic practice.Our legislation unable to solve the problems arising in practice effectively.In order to break the deadlock of the legal relationship between the parties,and untie the legal and economic relationship,the academic and judicial circles on whether the theory of "the defaulter’s right to terminate a contract" can be supported.The Supreme People’s Court issued the "Notice of the Supreme People’s Court on Issuing the Minutes of the National Court Work Conference for Civil and Commercial Trials",("the Circular Minutes")which also explained that in some cases,such as housing lease contracts,the parties have formed a contractual deadlock in the process of performance,and the defaulting party is not allowed to rescind the contract through litigation or prosecution,sometimes to detriment of both parties.As a result,before the Civil Code is introduced in 2021,some local courts invoking the provisions for reasoned decisions.But the defaulter’s right to terminate contract was no longer provided in the Civil Code that subsequently came into force.The author does not support the view that the defaulting party has the right to terminate contract.Therefore,this article is intended to seek a better solution to the contractual impasse in the continuing debt relationship by taking the lease contract as a model.Leasing contracts are quite common in economic life,and the subject matter of leasing is diverse and all-embracing,ranging from small daily necessities such as rechargeable batteries and bicycles for meeting people’s daily needs,to large motor vehicles,houses,production equipment and other high-value for production and operation.With increasing commercialization,An entire enterprise has also emergeds as a subject matter of leasing.A company can lease out the "labor relationship" of workers in subordinate factories together with production equipment.This kind of atypical leasing relationship is an anonymous contract,which cannot be applied to traditional leasing contracts,is a nameless contract.Of course,it is necessary to approach the general provisions of leasing contracts in terms of legal application.Lease contract is a typical continuous contract.Compared with the momentary contract,the continuous contract lasts for a longer period of time and is more likely to fall into a contractual deadlock in the process of performance.The wide application of lease contract in practice has led to different and complex reasons for deadlock in individual cases,and the number of cases of contract deadlock is increasing year by year.There are different judgment attitudes and reasoning ways in dealing with contract deadlock.In this paper,the specific cases in the lease contract are cited in order to put forward some disputes arising from the contract deadlock in the lease contract,and the reasoning part of the judge and the judgment result are simply summarized.The author had dismissed the breaching party of termination right point of view,put forward the existing rules in the Civil Code are difficult to solve the lease contract deadlock,legal rescission is mainly aimed at the present problems,the termination of the contract is increased irregular terms of the contract terminate the general provisions of the system,but to continue the contract is still little attention,ignoring its particularity.This paper briefly explains that article 580 of civil Code cannot apply to lease contract.The principle of change of circumstances is difficult to solve the tenant caused by some operating difficulties.The author explores the nature of the lease contract itself,defines how to distinguish civil lease from commercial lease,and especially illustrates the abuse of the lessor’s termination right in the housing lease contract.Based on the example of German legislation,the author seeks to design and apply the system of termination right of continuing contract in Germany.First,the PRC Civil Code should distinguish "termination of temporary contract" and "termination of continuous contract" by imitating the dual termination mode under the separation of termination and termination adopted in German civil law.Secondly,our nation should introduce the right to terminate for significant reasons to break the contract deadlock and put forward the criteria for judgment.Finally,it should impose special restrictions on the lessor’s right to terminate housing lease contract,so as to break the deadlock of the contract and loosen the economic relationship,while protecting the lessee’s living interests and rights.