RUSHI GARDEN PLOT
22
2018
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03
What responsibilities must be borne for breach of contract?
Breach of contract refers to the failure of one party to fulfill their obligations as outlined in a contract. The responsibilities for breach of contract can include the following: 1. **Compensatory Damages**: The breaching party may be required to pay damages to the non-breaching party to compensate for the losses incurred due to the breach. This typically includes direct losses and any consequential damages that were foreseeable at the time the contract was made. 2. **Specific Performance**: In some cases, the non-breaching party may seek a court order requiring the breaching party to fulfill their contractual obligations as originally agreed, rather than just seeking monetary damages. 3. **Rescission**: The non-breaching party may have the right to rescind the contract, which means they can cancel the contract and be released from any further obligations under it. 4. **Reformation**: If the contract is found to be ambiguous or unfair, a court may reform the contract to reflect the true intentions of the parties involved. 5. **Legal Fees**: Depending on the terms of the contract and the jurisdiction, the breaching party may also be responsible for the legal fees incurred by the non-breaching party in pursuing a claim for breach of contract. 6. **Mitigation of Damages**: The non-breaching party has a duty to mitigate their damages, meaning they must take reasonable steps to reduce their losses resulting from the breach. 7. **Good Faith and Fair Dealing**: Both parties are generally expected to act in good faith and deal fairly with each other, even if a breach occurs.
According to Article 107 of the contract law, if a party fails to perform its contractual obligations or fails to perform its contractual obligations in accordance with the agreement, it shall bear the liability for breach of contract such as continued performance, remedial measures or compensation for losses.
This provision is the most basic general provision for breach of contract and liability for breach of contract. We can understand it as follows:
(1) Continue to perform. It means that if the contractual obligations are not performed or the performance is not in conformity with the agreement, the observant party may require the breaching party to continue to perform in accordance with the agreement of the contract until the purpose of the contract is achieved. This situation is mostly applicable to the situation that the subject matter is specific, must be performed and cannot replace performance.
(2) Take remedial measures. It refers to that the quality of the subject matter of the performance of the debt does not comply with the contract, and there is no need to continue the performance, but only take appropriate remedial measures to achieve the purpose of the contract or the purpose satisfactory to the observant party. For example, if the quality of the delivered products does not meet the agreement, the injured party may reasonably choose to require the other party to bear the liability for breach of contract such as repair, replacement, rework, return, reduction of price or remuneration according to the nature of the subject matter and the size of the loss.
(3) Compensation. It refers to the liability bearing method agreed by the parties in the contract that if one party causes actual damage to the other party due to breach of contract, it shall be compensated according to the amount of actual damage. If the other party still has other losses after performing its obligations or taking remedial measures, it shall compensate for the losses.
Article 112 of the contract law: if a party fails to perform its contractual obligations or fails to perform its contractual obligations in accordance with the agreement, if the other party still has other losses after performing its obligations or taking remedial measures, it shall compensate for the losses.
Article 113: if a party fails to perform its contractual obligations or fails to perform its contractual obligations in accordance with the agreement, resulting in 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, but shall not exceed the possible losses caused by the breach of contract that the breaching party had foreseen or should have foreseen when concluding the contract.
(4) Liquidated damages. It refers to the way of liability for breach of contract agreed by the parties in the contract that when one or both parties breach the contract, the breaching party shall pay a certain amount of currency to the observant party to make up for the losses of the observant party, and at the same time, it also has the function of punishing the breach of contract. After assuming the liability for breach of contract, whether to continue to perform or take remedial measures can be determined by the parties to the contract through negotiation. However, if the parties agree on liquidated damages for delay in performance, the breaching party shall continue to perform after paying the liquidated damages.
The above liability for breach of contract can be applied selectively or in several ways at the same time, but the purpose is to achieve the purpose of the contract and shall be agreed by all parties to the contract.
According to Article 107 of the contract law, if a party fails to perform its contractual obligations or fails to perform its contractual obligations in accordance with the agreement, it shall bear the liability for breach of contract such as continued performance, remedial measures or compensation for losses.
This provision is the most basic general provision for breach of contract and liability for breach of contract. We can understand it as follows:
(1) Continue to perform. It means that if the contractual obligations are not performed or the performance is not in conformity with the agreement, the observant party may require the breaching party to continue to perform in accordance with the agreement of the contract until the purpose of the contract is achieved. This situation is mostly applicable to the situation that the subject matter is specific, must be performed and cannot replace performance.
(2) Take remedial measures. It refers to that the quality of the subject matter of the performance of the debt does not comply with the contract, and there is no need to continue the performance, but only take appropriate remedial measures to achieve the purpose of the contract or the purpose satisfactory to the observant party. For example, if the quality of the delivered products does not meet the agreement, the injured party may reasonably choose to require the other party to bear the liability for breach of contract such as repair, replacement, rework, return, reduction of price or remuneration according to the nature of the subject matter and the size of the loss.
(3) Compensation. It refers to the liability bearing method agreed by the parties in the contract that if one party causes actual damage to the other party due to breach of contract, it shall be compensated according to the amount of actual damage. If the other party still has other losses after performing its obligations or taking remedial measures, it shall compensate for the losses.
Article 112 of the contract law: if a party fails to perform its contractual obligations or fails to perform its contractual obligations in accordance with the agreement, if the other party still has other losses after performing its obligations or taking remedial measures, it shall compensate for the losses.
Article 113: if a party fails to perform its contractual obligations or fails to perform its contractual obligations in accordance with the agreement, resulting in 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, but shall not exceed the possible losses caused by the breach of contract that the breaching party had foreseen or should have foreseen when concluding the contract.
(4) Liquidated damages. It refers to the way of liability for breach of contract agreed by the parties in the contract that when one or both parties breach the contract, the breaching party shall pay a certain amount of currency to the observant party to make up for the losses of the observant party, and at the same time, it also has the function of punishing the breach of contract. After assuming the liability for breach of contract, whether to continue to perform or take remedial measures can be determined by the parties to the contract through negotiation. However, if the parties agree on liquidated damages for delay in performance, the breaching party shall continue to perform after paying the liquidated damages.
The above liability for breach of contract can be applied selectively or in several ways at the same time, but the purpose is to achieve the purpose of the contract and shall be agreed by all parties to the contract.
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