Direct answer

Termination is a legal act: you need a ground, a clear notice, and a plan for restitution.

The Civil Code distinguishes termination by agreement, exercise of a contractual termination right, and statutory termination for circumstances such as impossibility, fundamental breach, or delay that persists after a reasonable demand. The terminating party should use the notice method in the contract, keep evidence of receipt, and deal with deposits, part-performance and 违约金. A wrongful termination can itself be a breach. Some licensed or real-estate deals add extra form.

The classification screen

5 questions before you choose the route.

This page identifies the right question and evidence. It does not determine the legal outcome on a reader’s facts.

01

What is the ground?

Agreement, a named termination option, fundamental breach, or a statutory event.

Ground
02

Have you demanded cure?

Many delay cases require a reasonable additional period before you may terminate.

Cure
03

How must notice be given?

Address, language, email vs courier, and when notice is deemed received.

Notice
04

What happens to money and goods?

Restitution, deposits, completed stages and spare parts need a ledger.

Unwind
05

Is a forum already chosen?

Preserve claims and limitation periods when you terminate.

Forum

Working rule: Map the regulated role before marketing or launch in China.

What changes the answer

The signal ledger.

These facts move the question beyond a label and into a product, money-flow and control analysis.

Signal
Ask the operating question
Why it changes the route
Fundamental vs minor breach
Does the breach defeat the contract purpose, or is it a curable delay or defect?
Statutory termination is not available for every dissatisfaction.
Deposit and LD interaction
Are you keeping a deposit, claiming 违约金, and also unwinding supply?
Chinese law limits stacking overlapping money claims.
Continuing performance
Has your side kept taking delivery or paying after the alleged breach?
Waiver and affirmation arguments arise from later conduct.
Prepare before you escalate

Bring a compact evidence docket—not a pitch deck.

Give a compliance team or counsel the operating facts that reveal the perimeter.

01Termination clauseGrounds, notice method and unwind rules in both languages.
02Breach fileWhat failed, when, and any cure demand.
03Termination noticeThe notice actually sent and proof of receipt.
04Money ledgerDeposits, invoices, goods in transit and stock.
05Later conductAny performance after the alleged termination date.
Common confusions

Questions people ask before they build.

Short answers for orientation. The right result can change with the service model and current rules.

Can we terminate by WeChat?

Only if the contract’s notice clause allows it or the other side clearly received and acted on it. For high-value deals, follow the contractual method and keep a courier or email record as well.

Does termination cancel accrued payment claims?

Not automatically. Accrued debts, deposits and damages may survive. Map them before you send the notice.

Primary authorities

Reviewed sources support orientation, not a fact-specific assessment.

PRC Civil Code (gov.cn)
National laws database (NPC)
Supreme People’s Court