What does it mean to sign a contract and pay a performance fee?

Contract performance payment refers to a monetary guarantee provided for the performance of a contract. It will only be refunded when the contract between the two parties expires or is terminated in accordance with the law. It is not a statutory form of security for debts, and its nature and effect lack legal basis. Similar to a performance bond.

Features of the performance payment for this section of the contract.

First, the tenderer must clearly stipulate in the bidding documents that when the winning bidder submits the contract performance payment, this clause is valid, and if it is not clearly stipulated in the bidding document, it shall not be added after winning the bid. This maintains the authenticity of the offer in the bidding and the rights and interests of the bidder, and the project tenderer can choose whether to bid for the project according to its own conditions. As a result, contract performance payments are optional.

Second, the contract performance fee is different from the deposit, and the purpose of the contract performance fee is to guarantee the contractor's full performance of the contract, and the main guarantee is that the construction period and quality are in accordance with the contract. The contractor has successfully fulfilled its obligations, and the tenderer must return the contractor in full. The function of the contract performance fee is to compensate the tenderer for the loss when the contractor breaches the contract, that is, if the contractor breaches the contract, it will lose the right to recover the contract performance fee, and it is not limited to this.

If it is agreed that there is a double return or the content with the unique attributes of the deposit, in line with the deposit rule, it is a deposit; If there is no "deposit" or an agreement that clearly stipulates the application of penalties in the nature of a deposit, the contract performance fee that has been paid is not a deposit, but other monetary qualities. If the contract performance fee is agreed but not paid, the agreement on the contract performance fee is established but does not take legal effect (because the pledge contract is also a practical contract and must be subject to delivery). Third, the contract performance fee emphasizes the guarantee of the interests of the tenderer or the interests of the investor, which can be borne by the contractor who wins the bid or by a third party, but the tenderer's endorsement is valid, and the third party bears joint and several liability, so it is substitutionary.

In the event of a breach of contract by the winning bidder, the liability of the winning bidder shall be borne by the third party. In order to balance the interests of the tenderer and the winning bidder, Article 62 of the Measures for Bidding and Bidding for the Construction of Engineering Construction Projects of the seven ministries and commissions officially implemented on March 8, 2003 stipulates: "If the tenderer requires the winning bidder to submit the contract performance fee or other forms of performance guarantee, the tenderer shall provide the winning bidder with a guarantee for the payment of the project money at the same time.

Fourth, the proportion of contract performance is stipulated, the proportion of the project cost of 5 10, the specific implementation ratio by the tenderer according to the project cost to determine, the general situation is that the higher the project cost should be lower, so it has a relative fixity, the tenderer can not ask for a price, must comply with the provisions of the law. Fifth, the contract performance fee must be free from the project cost, only as the winning bidder breaches the contract when the tenderer loses compensation, the tenderer must be a legal person with the ability to bid, its construction funds have been in place, can not be the contract performance money as a supplement to the project cost. As a result, contract performance payments are independent and must be collected, stored, enforced and returned by a mutually agreed body.

Equivalent to liquidated damages.

Lawyer Chai Haiyan.

Performance payment refers to a monetary guarantee provided for the performance of a contract, and is refunded only when the contract between the two parties expires or is terminated according to law. Similar to a performance bond, the performance bond is different from the silver deposit. There are three forms: performance bond (also known as performance bond), performance bank guarantee and performance bond. The tenderer may require the bidder to submit a bid bond in the bidding documents.

[Legal basis].

Measures for Bidding and Bidding for the Construction of Engineering Construction Projects》 Article 37 The tenderer may require the bidder to submit a bid bond in the bidding documents. In addition to cash, the bid bond can be a bank guarantee, a certified check, a bank draft or a cash check issued by the bank. The bid deposit shall not exceed 2% of the estimated price of the project, but the maximum shall not exceed 8 acres and more than 100,000 yuan.

The validity period of the bid bond shall be consistent with the validity period of the bid. The bidder shall, in accordance with the manner and amount required by the bidding documents, submit the bid bond with the bidding documents to the tenderer or its entrusted bidding agency. For domestic bidders of projects that must be tendered for construction in accordance with the law, the bid bond submitted in the form of cash or cheque shall be transferred from its basic account.

Legal Analysis: Contract performance refers to the execution of obligations under the contract. The performance of any obligation under the contract is the performance of the contract; Correspondingly, any failure to perform an obligation under the contract is a failure to perform the contract.

Therefore, the performance of the contract is manifested in the performance of the obligation of the scumbag in the hall to pretend to be quiet. When the contractual obligations are executed, the contract is also fulfilled. Specifically, contract performance refers to the full and proper fulfillment of contractual obligations by the contract debtor in accordance with the provisions of the contract or the provisions of the law, so that the creditor's claim can be realized.

Legal basis: Article 509 of the Civil Code of the People's Republic of China The parties shall fully perform their obligations in accordance with the agreement. The parties shall follow the principle of good faith and perform obligations such as notification, assistance, and confidentiality in accordance with the nature, purpose, and transaction habits of the contract.

In the process of performing the contract, the parties shall avoid wasting resources, polluting the environment and damaging the ecology.

Fulfillment, a Chinese word, pinyin lǚyuē, means to fulfill the agreed thing; Fulfillment.

The performance of the contract is from the Ming Dynasty "Yuan Keli Jin Rank and the Right Servant Lang Lang":"Erf splits the years and hides away, and can hide to irrigate the garden. Yu Qihong gradually ascended, and still fulfilled the contract and Bingzhu. "Qingming fulfills the contract, and there is no violation of courtesy.

The performance of contracting, sales, service and other contracts generally includes that one party completes the work and obligations stipulated in the contract on time and with quality, the contract is completed, and the other party fulfills its commitments (such as payment, etc.) in a timely manner in accordance with the provisions of the contract.

One party fails to complete the work on time and in accordance with the quality stipulated in the contract, the contract is not completed, and the other party refuses to fulfill its commitments (such as payment, etc.) according to the provisions of the contract.

Legal Analysis: Remorse.

The contract performance fee is a monetary guarantee for the performance of the contract, and it will be refunded when the contract between the two parties expires or is terminated according to law. It is not a statutory debt guarantee, and its nature and effect lack legal basis, similar to a performance bond, a contract performance fee is different from a deposit.

Legal basis: Article 586 of the Civil Code of the People's Republic of China The parties may agree that one party shall pay a deposit to the other party as security for the creditor's rights. The Qingchun Zheng deposit contract shall be established when the deposit is actually paid.

The amount of the deposit shall be agreed upon by the parties; However, it shall not exceed 20% of the amount of the subject matter of the main contract, and the excess part shall not have the effect of a deposit. If the actual amount of the deposit is more or less than the agreed amount, it shall be deemed to have changed the agreed amount of the deposit.

Contract performance pay is legal. As long as the contract performance fee is agreed upon by both parties through consultation, it is legal. The contract performance fee refers to a monetary guarantee provided for the performance of the contract, and is refunded only when the contract expires or is terminated by law.

Article 490 of the Civil Code 6868 If the parties conclude a contract in the form of a contract, the contract shall be concluded when both parties sign, affix their seals or press their fingerprints. The contract is formed when one of the parties has fulfilled its primary obligations and the other party has accepted it before signing, stamping or fingerprinting. Laws, administrative regulations or the parties agree that the contract shall be concluded in written form, and the parties have not adopted the written form but one party has fulfilled its main obligations and the other party has accepted it, the contract shall be established.