Ontbinding
Dissolution
Dissolution is the termination of a contract or legal entity on the grounds of a breach or statutory provision.
Dissolution means that a party may terminate the agreement if the other party remains in default of performing its obligations. This remedy is provided for in the Civil Code and generally requires a notice of default, unless performance has become permanently impossible.
Dissolution may take place both extrajudicially and through the courts. In practice, this instrument is frequently used in contractual disputes to limit the consequences of non-performance and to claim damages.
In addition, dissolution may also relate to the termination of a company or a marriage, in which case specific statutory procedures apply.
“The buyer sought rescission of the purchase agreement on the ground that the seller had failed to deliver the property in a timely manner.”
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