Certain issues of termination of contracts by unilateral declaration

Abstract

In this study I examine certain issues of termination of contracts by termination by notice and rescission through the relevant provisions of Act V of 2013 on the Civil Code (hereinafter: Civil Code) and Act XLIX of 1991 on bankruptcy and liquidation proceedings (hereinafter Cstv.) and their judicial practice. It will be shown that the Civil Code, in addition to the termination of a contract by mutual agreement, also allows, exceptionally, but in several places, for the unilateral termination of a contract. The question of whether, in the event of rescission, proof of the ability to return is required or whether willingness to return is sufficient will be answered. In the second part of my study, I will examine the right of termination and rescission available to the liquidator. I will point out that the Cstv. explicitly entitles the liquidator to terminate the contract, therefore he does not do so on behalf of the debtor, in contrast to, for example, the right of avoidance found in Section 40 of the Cstv., which according to the wording of the law is exercised by the liquidator in the name of the debtor.