
How to Terminate a Contract for Work – Options for Both Parties
Content:
Sometimes, things just don’t work out.
A contract was signed, the project began – and yet, something’s wrong. The contractor is late, or the client stopped paying, or trust has vanished.
That’s when one of the toughest questions comes up:
👉 “Can we terminate the contract, and how?”
The answer isn’t always easy – but knowing your rights in advance can save you a great deal of trouble.
In Czech law, a contract for work is governed by Sections 2586 et seq. of the Civil Code. Terminating such a contract can be tricky – especially since each party has different rights and duties.
🛑 Withdrawal from contract
Withdrawal cancels the contract from the beginning. It’s possible if:
the other party has breached a material obligation,
a specific situation for withdrawal is contractually agreed, or
the law explicitly permits it.
However, withdrawal requires full settlement – including refunds of any payments or completed works.
🧾 Termination (notice)
Unlike withdrawal, termination ends the contract only going forward. It’s typical for long-term or framework contracts, but rare in work contracts unless explicitly included.
Under Czech law, a client can withdraw even without cause, but must compensate for incurred costs and lost profit (Section 2589 CC).
This rule often causes disputes when overlooked.
⚖️ Termination by agreement
The most peaceful solution: both parties agree to end the contract.
This allows customization of consequences – like partial payments, delivery of completed work, and final deadlines.
This type of agreement lowers the risk of future litigation – but requires full mutual consent.
📌 What to include in the contract
To avoid problems later, always include:
clear grounds and procedure for withdrawal,
details on cost coverage and refunds,
deadlines for notices,
optional notice clause if the project is long-term.
Facing a difficult contract termination? Or want to draft a contract that includes safe exit options?
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- Publikováno:
- Naposledy aktualizováno: 17/06/2025