How to deal with the breach of decoration contract

1、 Decoration Breach of contract How to deal with the problem

According to our country《 Civil Code 》As well as the provisions of the relevant judicial interpretation, if the decoration contract is in breach, the party concerned may, in accordance with the relevant provisions of the Civil Code, require the breaching party to continue to perform, take remedial measures or compensate for losses Liability for breach of contract 。 Default means Parties to the contract Breach of contractual obligations. Breach of contract is the basic component of liability for breach of contract. Without breach of contract, there is no liability for breach of contract.

2、 Agreed Liquidated damages Treatment method for too high or too low

The second paragraph of Article 585 of the Civil Code stipulates: "If the agreed liquidated damages are lower than the losses caused, the parties may request the people's court or arbitration institution to increase them. If the agreed liquidated damages are too high than the losses caused, the parties may request the people's court or arbitration institution to reduce them appropriately." In other words, Even if both parties have agreed on the amount or calculation standard of liquidated damages in the contract, if the standard is different from the actual loss, litigation In the process, they may also request the people's court to make adjustments.

Specifically, the provisions here reflect the protection of the law for the observant party: if the agreed liquidated damages are lower than the actual losses, the parties (usually the observant party) can request an increase; as long as it is "lower than" here, it can request an increase, without the requirement of quantity; If the agreed liquidated damages are excessively higher than the losses caused, the parties (usually the defaulting party) can request an appropriate reduction. This must be "excessively higher", a quantitative requirement, and can only request an "appropriate" reduction.

In addition, the request for such increase or appropriate decrease must be made orally or in writing by the parties in litigation or arbitration, otherwise, the court or arbitration authority cannot increase or decrease it ex officio. In order to protect transaction security, the law has made detailed provisions on the application of liquidated damages here.

3、 The application of liquidated damages shall be subject to the agreement

The liquidated damages are the liquidated damages that the parties to the contract have agreed in advance in the contract. When one party fails to perform the contract or fails to fully perform the contract, the defaulting party shall pay the other party Deposit Currency of the amount.

Article 585 of the Civil Code stipulates: "The parties may agree that when one party breaches the contract, it shall pay a certain amount of liquidated damages to the other party according to the circumstances of the breach, and may also agree on the calculation method of the amount of compensation for losses arising from the breach." Therefore, the application of liquidated damages is subject to the agreement of both parties. If there is no relevant agreement on liquidated damages in the contract, If one party breaches the contract and the other party claims liquidated damages in the lawsuit, the court will not support it.

4、 How should the parties protect their legal rights

If both parties have not agreed on liquidated damages in the contract, and if one party breaches the contract and causes losses to the other party, the other party may claim corresponding interest as compensation. The calculation standard of interest shall be the same period as that of the People's Bank of China lending rate calculation. This claim must be clearly defined as interest loss in the claim, and should not be confused with liquidated damages. If the plaintiff's claim is not clear about whether to claim liquidated damages or interest loss, the judge can exercise the right of interpretation, require the parties to clarify the claim, and bear the corresponding legal consequences.

To sum up, if the decoration contract is in breach, the party concerned may, in accordance with the relevant provisions of the Civil Code, require the breaching party to continue to perform the contractual obligations agreed in the contract, continue to take remedial measures for the breached contract, or bear the liability for breach of contract to compensate for economic losses.