Interest issues arising from default of debt contracts

If the negotiation fails, go to court to sue and claim rights according to the following laws.

Legal basis: Opinions of the Supreme People's Court on Several Issues Concerning the Application of the Civil Procedure Law of the People's Republic of China.

279. The people's court shall issue a notice of enforcement as provided for in article 220 of the Civil Procedure Law within 10 days of receiving the application for enforcement. In addition to ordering the person subject to enforcement to perform the obligations set forth in the legal documents, the enforcement notice shall also notify the person to bear the interest or penalty for delayed performance as provided for in article 232 of the Civil Procedure Law.

293. Where the person subject to enforcement delays performance, the interest or penalty for the period of delay in performance shall be calculated from the day after the expiration of the performance period specified in the judgment, ruling or other legal documents.

294. The doubling of the payment of interest on debts during the period of delayed performance as provided for in article 232 of the Civil Procedure Law refers to doubling the interest on debts calculated at the highest interest rate of bank loans for the same period.

If the agreed payment time is exceeded, interest may be claimed, which can be calculated with reference to the loan interest rate of the People's Bank of China for the same period.

B requests A to pay interest on the debt for the period of deferred payment. The interest calculation standard is based on the bank loan interest rate announced by the People's Bank of China for the same period.

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Liquidated damages are not interest on the debt. Liquidated damages refer to the money that the breaching party should pay to the other party in accordance with the agreement of the parties or the direct provisions of the law, which is punitive and compensatory, and is different from the nature of debt interest, and cannot be confused between the two.

1. What should I do if the lease contract does not write liquidated damages?

The lease contract does not contain liquidated damages, and liquidated damages can also be claimed if there is a breach of contract. If the parties to the contract do not stipulate liquidated damages in the contract, the liquidated damages are equal to the actual economic losses caused by the breach of contract.

Liquidated damages refer to the money that should be paid to the other party if one party breaches the contract according to the agreement of the parties or the direct provisions of the law.

2. Tax provisions on liquidated damages.

The tax provision for liquidated damages is that the liquidated damages collected by the company shall be included in the income and subject to enterprise income tax as the non-operating income of the enterprise. Liquidated damages refer to a certain amount of money paid by one party to the contract for breach of contract in accordance with the contract when the party fails to perform or improperly performs the contract. Liquidated damages are generally divided into punitive liquidated damages and compensatory liquidated damages, both of which fall within the scope of security interest.

In terms of the amount limit, if the parties agree on liquidated damages, they shall pay the liquidated damages as agreed, but if the loss is too high and needs to be appropriately reduced or the loss is too low and needs to be appropriately increased, the liquidated damages included in the scope of the guarantee shall be subject to the amount finally determined by the people's court or arbitration institution. The subject matter of liquidated damages is usually money, but the parties may also agree that the subject matter of liquidated damages is other property other than money.

3. Whether the liquidated damages in the contract can be claimed at the same time as the compensation for losses.

Liquidated damages and compensation for losses can be claimed at the same time. Liquidated damages refer to the money that should be paid to the other party if one party breaches the contract according to the agreement of the parties or the direct provisions of the law. Compensation for losses refers to a form of liability in which the breaching party pays money to compensate for the reduction of the injured party's property or interests caused by the breach.

Article 585 of the Civil Code of the People's Republic of China.

The parties may agree that one party shall pay a certain amount of liquidated damages to the other party according to the circumstances of the breach of contract, and may also agree on the method of calculating the amount of compensation for losses arising from the breach.

If the agreed liquidated damages are lower than the losses caused, the people's court or arbitration institution may increase them at the request of the parties; Where the agreed liquidated damages are excessively higher than the losses caused, the people's court or arbitration institution may appropriately reduce them at the request of the parties.

If the parties agree on liquidated damages for delayed performance, the breaching party shall also perform the debt after paying the liquidated damages.