What to do if there is a default in a real estate transaction How to deal with it

Legal analysis: Breach of contract in housing transaction can be dealt with in accordance with the contract. If one of the parties fails to perform the obligations agreed in the contract or performs the obligations of the contract but does not conform to the agreement, it shall bear the liability for breach of contract such as continuing to perform, taking remedial measures or compensating for losses.

If the loss of the other party is caused, the amount of compensation for the loss shall be equal to the loss caused by the breach of contract.

Legal basis: Civil Code of the People's Republic of China

Article 577:Where one of the parties fails to perform its contractual obligations or its performance does not conform to the agreement, it shall bear liability for breach of contract such as continuing to perform, taking remedial measures, or compensating for losses.

Article 578:Where one of the parties clearly states or shows by its own conduct that Hu Qing does not perform its obligations under the contract, the other party may request that it bear liability for breach of contract before the expiration of the performance period.

Article 584: Where one of the parties fails to perform its contractual obligations or the performance of its contractual obligations does not conform to the agreement, and the other party suffers losses, the amount of compensation for the losses 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; provided, however, that it shall not exceed the losses that may be caused by the breach of contract that the breaching party foresaw or should have foreseen at the time of entering into the contract.

The treatment of default in the sale and purchase of a house is to continue to perform, take remedial measures or compensate for damages. The non-breaching party may choose to terminate the contract, and the breaching party shall bear the liability for breach of contract; If the non-breaching party refuses to exercise the right to terminate the contract, it may require the breaching party to continue to perform.

1. What are the legal consequences of non-performance of the contract?

The Civil Code stipulates that if one of the parties fails to perform its contractual obligations or the performance of its contractual obligations does not conform to the agreement, it shall bear the liability for breach of contract such as continuing to perform, taking remedial measures or compensating for losses.

Continued performance, also known as compulsory actual performance, refers to the form of liability for breach of contract in which the breaching party continues to perform its obligations under the contract at the request of the other party.

The applicability of continued performance varies according to the nature of the obligation

1. Monetary debts: unconditionally applicable to continue to perform. There is only a delay in the performance of monetary debts, and there is no inability to perform. Accordingly, the form of continuing responsibility should be applied unconditionally.

2. Non-monetary debts: conditional application to continue performance. In principle, a request for continued performance of non-monetary debts may be requested, except in the following circumstances:

1) Legal or de facto impossibility of performance;

2) the subject matter of the debt is not subject to compulsory performance or the cost of compulsory performance is too high;

3) The creditor does not request performance within a reasonable period of time.

As an independent form of liability for breach of contract, the adoption of remedial measures refers to specific measures to correct the improper performance of the contract and eliminate the defects in performance. This form of liability is complementary to continued performance and compensation for losses.

Compensation for losses refers to the form of liability of the breaching party to make up for the loss of property or lost benefits of the injured party due to the breach of contract by paying money.

Compensation for losses is the compensation of the breaching party for the losses suffered by the non-breaching party due to the breach. First of all, compensation for losses is compensation for losses caused by the breach of contract, and losses unrelated to the breach of contract are not included in the compensation. Second, compensation for losses is a compensation for the losses suffered by the non-breaching party, not a penalty for breach of contract.

The scope and amount of liquidated damages may be agreed upon by the parties. The parties may agree on the amount of liquidated damages and the method of calculating damages.

Article 577 of the Civil Code.

If one of the parties fails to perform its contractual obligations or the performance of its contractual obligations does not conform to the agreement, it shall not bear the liability for breach of contract such as continuing to perform, taking remedial measures, or compensating for losses.

Article 584.

If one of the parties fails to perform its contractual obligations or the performance of its contractual obligations does not conform to the agreement, causing losses to the other party, the amount of compensation for losses 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; provided, however, that it shall not exceed the losses that may be caused by the breach of contract that the breaching party foresaw or should have foreseen at the time of entering into the contract.

If the seller of the house is in breach of contract, he may be required to continue to perform the contract. If the seller constitutes a fundamental breach of contract, the other party may rescind the contract and hold the other party liable for the breach of contract. According to Article 578 of the Civil Code, if one of the parties expressly states or shows by its own behavior that it will not perform its contractual obligations, the other party may request it to bear the liability for breach of contract before the expiration of the performance period.

Article 584 stipulates that if one of the parties fails to perform its contractual obligations or the performance of the contractual obligations does not conform to the agreement, resulting in losses to the other party, the amount of compensation for the losses shall be equivalent to the losses caused by Daziyan's breach of contract, including the benefits that can be obtained after the performance of the contract; provided, however, that it shall not exceed the losses that may be caused by the breach of contract that the breaching party foresaw or should have foreseen at the time of entering into the contract.

Article 578 of the Civil Code provides that if one of the parties expressly states or shows by its own conduct that it will not perform its contractual obligations, the other party may request it to bear the liability for breach of contract before the expiration of the performance period. Article 584 of the Civil Code provides that if one of the parties fails to perform its contractual obligations or the performance of its contractual obligations does not conform to the agreement, causing losses to the other party, the amount of compensation for the losses 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; provided, however, that it shall not exceed the losses that may be caused by the breach of contract that the breaching party foresaw or should have foreseen at the time of entering into the contract.

If the non-breaching party breaches the contract in the sale and purchase of the house, it may require the breaching party to perform its contractual obligations within the agreed time limit, or sue the court to require the breaching party to perform the contract in a timely manner, take remedial measures and pay liquidated damages.

Article 577 of the Civil Code.

If one of the parties fails to perform its contractual obligations or the performance of its contractual obligations does not conform to the agreement, it shall bear the liability for breach of contract such as continuing to perform, taking remedial measures or compensating for losses.

Article 584.

If one of the parties fails to perform its contractual obligations or the performance of its contractual obligations does not conform to the agreement, causing losses to the other party, the amount of compensation for losses 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 may be caused by the breach of contract that the breaching party foresaw or should have foreseen at the time of entering into the contract.

In the sale and purchase of a house, if the seller breaches the contract, the buyer can terminate the contract, and require the seller to bear the liability for breach of contract and pay liquidated damages and compensation to the buyer; If the buyer refuses to exercise the right to rescind the contract of sale and purchase of the property, the seller may be required to continue to perform the contract.

[Legal basis].

Article 577 of the Civil Code of the People's Republic of China: Where one of the parties fails to perform its contractual obligations or the performance of its contractual obligations does not conform to the agreement, it shall bear the responsibility for breach of contract such as continuing to perform, taking remedial measures, or compensating for losses. Article 584:Where one of the parties fails to perform its contractual obligations or the performance of its contractual obligations does not conform to the agreement, causing losses to the other party, the amount of compensation for the losses 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; provided, however, that it shall not exceed the losses that may be caused by the breaching party that were foreseen or should have been foreseen at the time of entering into the contract.

After signing the house sale contract, if the purpose of the other party to conclude the contract cannot be realized due to the fundamental breach of contract by one party, the non-breaching party may request to terminate the contract and require the breaching party to compensate for the corresponding losses, such as the loss of the price difference of the house and other losses that can be obtained, unless otherwise agreed by the two parties. When determining and calculating the loss of obtainable benefits, factors such as the transaction costs incurred by the non-breaching party to obtain benefits should be comprehensively considered. Article 577 of the Civil Code of the People's Republic of China: Where one of the parties fails to perform its contractual obligations or the performance of its contractual obligations does not conform to the agreement, it shall bear liability for breach of contract such as continuing to perform, taking remedial measures, or compensating for losses.