Legal basis:
Article 465 of the Civil Code of People's Republic of China (PRC)
Contracts established according to law are protected by law.
A legally established contract is legally binding only on the parties, except as otherwise provided by law.
Article 562
The parties may terminate the contract if they reach an agreement through consultation.
The parties may agree on the reasons for one party to terminate the contract. When the reasons for the termination of the contract arise, the creditor may terminate the contract.
Article 584
If one party fails to perform its contractual obligations or fails to perform its contractual obligations in conformity with the agreement, thus causing losses to the other party, the amount of damages shall be equivalent to the losses caused by the breach of contract, including the benefits that can be obtained after the performance of the contract; However, it shall not exceed the losses that the breaching party foresaw or should have foreseen when concluding the contract.