For a contract under which the debtor is required to con nuously perform an obliga on for an inde nite period of me, the par es thereto may rescind the contract at any me, provided that the other party shall be no ed within a reasonable period of me. Ar cle 564 Where a me limit for exercising the right to rescind the contract is provided by law or agreed by the par es, if the par es have not exercised such right upon expira on of the period, such a right shall be ex nguished. Where no me limit for exercising the right to rescind the contract is provided by law or agreed by the par es, such a right shall be ex nguished if the party with the right to rescission does not exercise such right within one year a er he knows or should have known the causes for rescission, or within a reasonable period of me a er being demanded by the other party. Ar cle 565 Where one of the par es requests to rescind the contract in accordance with law, the other party shall be duly no ed. The contract shall be rescinded at the me the no ce reaches the other party, or, where the no ce states that the contract shall be automa cally rescinded if the debtor fails to perform his obliga on within a speci ed period of me, the contract shall be rescinded when the debtor fails to perform the obliga on upon expira on of such speci ed period of me. Where the other party has objec ons to the rescission of the contract, either party may request the people's court or an arbitra on ins tu on to determine the validity of the rescission. Where one of the par es, without no fying the other party, requests the rescission of the contract by directly ling a lawsuit or applying for arbitra on in accordance with law, and the people’s court or arbitra on ins tu on con rms such request, the contract shall be rescinded when a duplicated copy of the complaint or the applica on le er for arbitra on is served on the other party. Ar cle 566 A er a contract is rescinded, where the obliga ons have not yet been performed, the performance shall cease; where the obliga ons have already been performed, the par es may, taking into account the performance status and the nature of the contract, request restora on to the original status or other remedial measures taken, and have the right to request for compensa on for losses. Where a contract is rescinded due to a default, the party with the right to rescind the contract may request the breaching party to bear default liability, unless otherwise agreed by the par es. A er the principal contract is rescinded, a security provider shall s ll be obligated to secure the debtor’s liability, unless otherwise agreed in the security contract. Ar cle 567 Termina on of the rela onship of rights and obliga ons under a contract does not a ect the validity of the contract clauses regarding se lement and liquida on. Ar cle 568 Where the par es mutually owe obliga ons to each other, and the subject ma er of the obliga ons are of the same kind and quality, any party may o set his obliga on against the due obliga on of the other party, unless the obliga on cannot be o set by virture of the nature of the obliga ons, or in accordance with the agreements by the par es or the provisions of law. A party who claims a set-o shall no fy the other party. The no ce shall become e ec ve when it reaches the other party. No condi ons or me limit may be a ached to the set-o . Ar cle 569 Where the par es mutually owe obliga ons to each other and the subject ma er of the obliga ons are not of the same kind or quality, the obliga ons may also be o set upon agreement by the par es through consulta on. Ar cle 570 Where it is di cult to perform an obliga on under any of the following circumstances, a debtor may place the subject ma er in escrow: (1) the creditor refuses to accept the performance without just course; (2) the creditor cannot be located; (3) the creditor dies with his heirs or estate administrator not determined, or the creditor loses his capacity for performing civil juris c acts with no guardian determined; or ti fi ti ff ti ti ti tt tt ti ti ti ti ff ti ti ti ff ti ff ti ti ti ti ti ti ti ti ff ti ti ti ti ti tt ti ti ti ff ti ti fi tt ti ti ti ti ti ti ti ti ti ti ti tt ti ff fi ti ti ti tt fi ti ti ffi ti ti ti ti ti ti ft ti fi ti ti ti ft ti ti ti ft ti fi fi ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ft 63