Termination of the contract: Principles of European Contract Law and the Law on Obligations of the Republic of Macedonia

Abstract

The purpose of this paper is to present a short introduction to the remedy of termination provided by the Principles of European Contract Law (hereafter PECL) and the Law on Obligations of the Republic of Macedonia (hereafter Law on Obligations). Both instruments indicate that have prescribed the possibility of terminating the contract for non-performance. The author begins with an overview over the definition of the remedy of termination as ultima ratio remedy. Following, the review focuses on the PECL, considering cases of fundamental non-performance and additional period of time; and on the Law on Obligations, considering cases of termination: when performing within the specified period of time is a basic term of a contract, and when performing within the specified period of time is not a basic term of contract. The paper concludes with a comparative assessment of the remedy contained within two aforementioned regulations highlighting the similarities and differences between them regarding to termination.