How to write a notice of termination of a contract of mandate
A contract of mandate usually ends on its scheduled expiry date. However, there are occasions when a notice of termination of an assignment contract is required. When is a notice of termination of a contract of mandate needed? How do I write a notice of termination of a contract of mandate? What is the template for the termination of a contract of mandate?
- Principles of a contract of mandate
- Termination of a contract of mandate – characteristics
- When can a contract of mandate be terminated?
- Termination of a mandate contract – notice period
- Format of termination of the mandate contract
- Reasons for termination of an engagement
- Termination of the employment contract – legal grounds
- What are the elements of termination of a contract of mandate?
- Termination of the employment contract – model
Principles of a contract of mandate
A contract of mandate is a civil law contract regulated by the Civil Code. A person performing work on the basis of a contract of mandate is entitled to such rights as are contained in the contract. The advantage of this type of contract is the possibility to be flexible in terms of work and freedom of time setting.
The parties to the contract may be both natural and legal persons. The parties to the contract are called: the principal (the person who orders the work) and the contractor (the person who accepts the order). A contract of commission can be signed in any way, as the principle of freedom of contract applies. It consists in the fact that the terms of the contract of mandate are arbitrary, but must be accepted by both parties.
A contract of mandate provides for the entrustment of the performance of a mandate to another person.
There are many differences between a civil law contract and an employment contract. They are regulated by other institutions: Civil Code (contract of mandate), Labour Code (contract of employment). The latter offers more employee privileges.
A contract of mandate allows not to contribute to the labour fund and the guaranteed employee benefits fund. Sickness contributions are voluntary. Employees are not entitled to provisions governing the use of annual leave.
The subject of a contract of mandate is usually simple services, but can also be very complex. An example would be entrusting a financial adviser to invest the principal’s money in order to make a profit.
Termination of a contract of mandate – characteristics
The Civil Code allows both parties – the employer and the employee – to give notice of termination of a contract of mandate. This can be done regardless of the duration of the contract. The termination of a contract of mandate may be terminated at any time, without a notice period. It then expires with immediate effect.
It is possible for the parties to a contract of mandate to agree that a period of notice should appear in the document. In such a situation, the terms of the assignment contract should be observed by both parties.
The Supreme Court says that if the reason for termination is the improper performance of the contract by the contractor, damages can be claimed for non-performance of the contract regardless of the mode of termination.
When can a contract of mandate be terminated?
A contract of mandate can be terminated at any time. Unless the duration of the assignment contract has been specified with a notice period. According to the Civil Code, the principal may charge the contractor for non-compliance with the contract and for the costs incurred by the contractor. The same is true if the contract is terminated by the contractor.
Termination of a mandate contract – period of notice
A contract of mandate is entered into freely. According to the Civil Code, the termination of a contract of mandate does not have to take place with a notice period.
If the contract of mandate contains a notice period, both the contractor and the principal should comply with it.
The notice period can be set in days, weeks and months. Most often, the term of a contract of mandate is counted in months. It counts from the day following its submission. Example: If you gave notice of termination on 10 May then the contract will expire 30 days after the day you gave notice.
Format for the termination of a contract of mandate
There is no specific rule as to what form the termination of a contract of mandate should take. It can be done verbally or in writing. The method of termination should be understandable and clear to the principal. Ideally, the termination of the assignment contract should be in the form in which the contract was concluded. We then have a guarantee and proof that it has been terminated.
If the notice of termination was given to the principal in writing, it must be in accordance with the notice period specified in the assignment contract. It can be sent electronically or by post, but it is best to send it by registered letter or courier so as to have a receipt.
Read also: Job application – how to write one?
Reasons for terminating an assignment
What might be the reasons for terminating an assignment so as to avoid financial problems?
These can be common or individual reasons such as:
- difficult life situation
- health problems
- legal changes
Termination of an assignment contract – legal basis
In accordance with art.747 of the Civil Code:
Termination of an assignment by the parties
§ 1. The principal may terminate the order at any time. He shall, however, reimburse the principal with the expenditures made by the principal in order to duly perform the assignment; in the case of a paid assignment, he shall pay the principal a part of the remuneration corresponding to his previous activities, and if the termination is without a valid reason, he shall also compensate the damage.
§ 2 The person accepting the assignment may terminate it at any time. However, if the assignment is for a fee and the termination is without a valid reason, the person accepting the assignment shall be liable for the damage.
§ 3. The right to terminate an assignment for good cause may not be waived in advance.
What are the elements of a notice of termination of a contract of mandate
The termination of a contract of mandate must contain a number of necessary information. It should include:
- the place and date of the notice of termination
- description of the assignment
- name of the person giving notice of termination
- address of the person giving notice of termination
- name of the other contractual party (customer)
- address of the other contractual party (customer)
- state valid reasons for termination of the contract (if applicable)
- signature of the party terminating the contract
Termination of a contract of mandate – model
Wondering what a contract of mandate termination should look like? Check out the model termination of an assignment contract below:
- A contract of mandate is governed by the Civil Code.
- A contract of mandate is subject to the principle of freedom of contract.
- According to a Supreme Court judgment, a contract of mandate may be terminated by the contractor and the principal. This means that each party has the right to terminate the contract.
- There is no need to give a reason for the termination of a contract of mandate if no obligations and terms of the contract are breached.
- There is no notice period in the contract unless it has been concluded by mutual agreement of the parties. If the contract is concluded with a notice period, both parties to the contract should comply.
- Termination of a contract of assignment without a reason for termination may involve liability. If the contractor has incurred any expenses in connection with the signing of the contract, the principal should reimburse them. In the case of termination of a paid assignment, he is also obliged to pay the part of the remuneration that corresponds to the contractor’s previous activities. In this case, a valid reason for termination must be given to avoid financial consequences.
There are two possibilities to terminate the contract: it can be done verbally or in writing. However, it should be borne in mind that a valid reason is a condition for termination with immediate effect. Each party to the contract has the option to terminate the contract.