I’m a freelancer, so I didn’t delve into the issues related to this type of authorization contract. What is the authorization contract, the conditions for filing a lawsuit requesting the cancellation of the authorization contract or the procedure for canceling the authorization contract, etc. are things that I still do not know? So, can the lawyer answer questions related to the Dispute over the cancellation of the authorization contract in accordance with the law? Thank you for trusting and sending a question to Lawyer 247. To answer the question “Dispute about the cancellation of the authorization contract in accordance with the law” and as well as understand some issues surrounding this question. Please refer to our articles below:
Legal grounds
Civil Code 2015
Legal provisions on authorization contracts
According to the provisions of Article 562 of the 2015 Civil Code, it is stated:
An authorization contract is an agreement between parties, whereby the authorized party is obliged to perform work on behalf of the authorizing party, the authorizing party only has to pay remuneration if so agreed or prescribed by law.
For authorization contracts in general and authorization contracts related to real estate in particular, the authorized party has the obligations specified in Article 565 of the Civil Code:
- Perform the authorized work and notify the authorizing party of the performance of such work.
- Notify the third party in the authorization relationship about the time limit and scope of authorization and the modification and supplementation of the authorization scope.
- Preserve and preserve documents and means assigned to perform the authorization.
- Keep confidential the information that you know while performing the authorization.
- To hand over to the principal the property received and the benefits obtained while exercising the authority as agreed or prescribed by law.
- Compensation for damage caused by breach of obligations specified in this Article.
In real life, the authorization contract has some disadvantages such as taking advantage of the authorization contract to hide another transaction.
Legal consequences of canceling the authorization contract
Pursuant to the provisions of the Civil Code in Article 124, Article 127:
– The authorization contract is canceled, no longer valid and legally valid.
– The related transactions, arising from the “cancelled” authorization contract are invalidated, the parties return to each other what they have received, the damage-causing party must compensate.
Conditions for filing a lawsuit requesting cancellation of the authorization contract
– Conditions for canceling the authorization contract when it has been notarized can only be fulfilled with the agreement of all the people who have entered into the authorization contract and the written commitment of all those who have participated in the authorization contract. enter into this authorization agreement.
In order to cancel the contract, if there is no agreement between the parties, one of the parties only needs to prove that the authorization contract signed by a notary public is against the provisions of law.
Authority to cancel the authorization contract
The authorization contract is canceled by the notarial practice organization that has notarized the authorization contract. In any case that the notarial practice organization that has performed the notarization has terminated its operation, been transformed, transferred or dissolved, the notary of the notarial practice organization that is keeping the notarization records may responsible for the cancellation of the notarized authorization contract at the request of the parties to the authorization contract.
Procedure to cancel the authorization contract
The cancellation of the authorization contract is often considered in terms of this contract being notarized. When canceling the authorization contract, we need to determine and carry out the procedures in accordance with the Law on Notary 2014 as follows:
Cancellation time limit: According to current law, the time limit for canceling the contract authorizing the parties to perform does not exceed two working days; In some cases where the authorization contract has complicated contents, the contract cancellation period may be longer, but the contract cancellation time must not be longer than ten working days.
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Contract cancellation location
The cancellation of the authorization contract must be done at the head office of the notarial practice organization.
The cancellation of the authorization contract may be done outside the head office of the notarial practice organization in case the person requesting the cancellation of the authorization contract is an elderly person, unable to walk, or a person being held in custody temporarily detained, serving a prison sentence or having other legitimate reasons unable to come to the head office of the notarial practice organization.
The contract to cancel the authorization contract must be made in writing and notarized. Cancellation of the authorization contract takes effect from the time the parties sign the authorization contract cancellation, the notary signs and stamps. The notary staff recovers the canceled contract and also marks the time when the authorization contract expires. The authorization contract terminates according to the general grounds for contract termination. In addition, the authorization contract has its own grounds for termination
– The authorization contract terminates when the term expires
The authorization must be made in writing, clearly specifying the authorization period. Within that time limit, the authorized party must complete the authorized work. In case the authorized party has not performed or has not yet fulfilled its obligations due to objective and subjective reasons and the authorization expires, the authorization contract shall terminate.
– The authorized party has completed the authorization work and returned the work results to the authorizing party
The authorization contract terminates when either party unilaterally terminates the performance of the contract. In case the authorized party violates the authorization obligation, the authorizing party unilaterally terminates the contract or the authorized party has performed a number of tasks but then violates the contract, the authorizing party unilaterally terminates the contract. terminate the contract.
– Either party dies, the authorization contract terminates. The authorization contract is directly performed by the parties, so if one party dies, the authorization contract will be terminated.
Thus, entering into an authorization contract for the purpose of authorizing the performance of a certain job, for different reasons, when the authorized work has not been completed, but the parties want to cancel the contract, they need to comply. comply with the provisions of the law.
The Civil Code 2015 stipulates in Article 569 on unilaterally terminating the performance of an authorization contract in case the authorization has remuneration, the authorizing party has the right to unilaterally terminate the performance of the contract at any time, but must pay the authorized party remuneration in proportion to the work performed by the authorized party and compensate for damage; if the authorization does not provide remuneration, the principal may terminate the performance of the contract at any time, but must notify the principal a reasonable time in advance.
The authorizing party must notify the third party in writing of the termination of the performance of the contract by the authorizing party; if not, the contract with the third party will still be valid, unless the third party knows or ought to know that the authorization contract has been terminated.
Thus, based on the above provisions, when canceling the authorization contract, the following must be noted:
- Is the authorization contract with remuneration or not? If remuneration is available, it must pay remuneration for the work and compensate the authorized party for damage, if not, a reasonable period of notice must be given in advance.
- Must notify the third party in writing.
- Notifying the authorized party should be in writing and should also include witnesses or evidence to ensure that the third party has received information about the cancellation of the authorization contract. In many cases, the authorized person has received a notice of the cancellation of the authorization contract but still continues to do it. This is also something that needs special attention.
Secondly, if the authorization contract has been notarized, in addition to the provisions of the Civil Code, it must comply with the provisions of the Law on Notarization 2014.
If the authorization contract has been notarized, the unilateral cancellation of the authorization contract according to the provisions of Article 51 of the Law on Notarization 2014 Notarizes the amendment, supplementation or cancellation of the contract or transaction.
For the notarization of amendments, supplements, or cancellations of contracts, notarized transactions can only be performed when there is a written agreement and commitment of all those who have entered into the contract or transaction. there.
The authorization contract, if it is notarized, is more valuable, but according to the provisions of the Law on Notarization 2014, the notarized authorization contract, if it is to be canceled, must have a written commitment from the participants. contract, that is, the participation of the principal and the authorized party is required. Thus, with the notarization regulations, amendments, supplements and cancellations of contracts, notarized transactions can only be performed when there is a written agreement and commitment of all those who have entered into the contract. such transaction will not be allowed to unilaterally cancel the notarized authorization contract.
Frequently asked questions
Pursuant to Clause 2, Article 144 of the 2015 Civil Code, as follows:
– The authority of the representative is limited by the content stated in the authorization contract or power of attorney.
– Representative authority depends on the type of authorization: one-time authorization, separate authorization or general authorization. One-time authorization allows the representative to perform only once and then the authorization terminates.
With the consent of the representative, the representative can authorize another person
Article 585 of the Civil Code 2015 stipulates the rights of the authorized party: “The representative in the authorization relationship may receive salary and remuneration depending on the agreement between the parties after performing the authorized work.”
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