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How to Bear the Responsibility for Breach of Contract

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How to Bear the Responsibility for Breach of Contract


        

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  • 2024-06-06 06:00:49

    There are three main ways for the buyer to bear the liability for breach of contract: continuous performance, remedial measures and damages.

    (1) Continue to perform. Continuing performance, also known as actual performance, means that when the debtor fails to perform its contractual obligations, the creditor may request the people's court or an arbitration institution to force the debtor to perform its contractual obligations.

    (2) Remedies. Remedial measures refer to the remedial measures that the debtor can take according to the performance of the contract when the creditor requests the people's court or arbitration institution to force the debtor to actually perform its contractual obligations when the debtor fails to perform its contractual obligations as agreed.

    (3) Damages. If a party fails to perform its contractual obligations or performs them in a manner inconsistent with the contract, and if the other party has other losses after performing its obligations or taking remedial measures, it shall be liable for damages. The specific ways of compensation for damages include compensation for losses, payment of liquidated damages and application of deposit penalties.

    [Legal Basis]

    In Article 577 of the Civil Code, if a party fails to perform its contractual obligations or fails to perform its contractual obligations in accordance with the agreement, it shall be liable for breach of contract by continuing to perform, taking remedial measures or compensating for losses.

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