Ch.7 Non-performance, s.3: Termination, Art.7.3.2
This commentary analyses Article 7.3.2 of the UNIDROIT Principles of International Commercial Contracts (PICC) concerning notice of termination. Under Art 7.3.2, termination of the contract has to be made by notice to the other party and sets a time limit for giving notice in certain cases of breach. The provision serves two objectives: first, it aims to prevent the aggrieved party from speculating on market fluctuations by postponing its decision on whether or not to terminate and, secondly, it allows the non-performing party to avoid any losses due to uncertainty as to whether the aggrieved party will terminate the contract. This commentary also discusses time limits for the exercise of the right to terminate and the burden of proof concerning notice of termination.