How to litigate in case of breach of contract

1、 How about breach of contract litigation

If a contract is breached, a lawsuit can be filed in the court where the defendant is located, generally in the district/county court, but if it involves real estate, it can be filed in the people's court where the real estate is located. Article 18 Basic People's Courts have jurisdiction over Section first instance Civil cases, except as otherwise provided for in this Law. because contract dispute In a lawsuit brought, the defendant's domicile or Contract performance The local people's court shall have jurisdiction.

Article 19 The intermediate people's courts shall have jurisdiction as courts of first instance over the following civil cases:

（1） Major foreign-related cases;

（2） Cases with significant influence in their own jurisdictions;

（3） Cases determined by the Supreme People's Court to be under the jurisdiction of intermediate people's courts.

Article 20 The Higher People's Courts shall have jurisdiction as courts of first instance over civil cases that have significant impact in their respective jurisdictions.

Article 21 The Supreme People's Court shall have jurisdiction as a court of first instance over the following civil cases:

（1） Cases that have significant influence in the whole country;

（2） Cases that should be heard by the Court.

Article 24 A lawsuit brought on a contract dispute shall be under the jurisdiction of the people's court of the place where the defendant has his domicile or where the contract is performed.

Article 25 The parties to a contract may, by agreement in a written contract, choose the people's court of the place where the defendant has his domicile, the place where the contract is performed, the place where the contract is signed, the place where the plaintiff has his domicile, and the place where the subject matter is located to exercise jurisdiction, provided that this Law shall not be violated against Hierarchical jurisdiction And exclusive jurisdiction.

Article 26 Cause insurance contract A lawsuit brought on a dispute shall be under the jurisdiction of the people's court of the place where the defendant has his domicile or where the subject matter of the insurance is located.

Article 27 A lawsuit brought on a bill dispute shall be under the jurisdiction of the people's court of the place where the bill is paid or where the defendant has his domicile.

Article 28 Railway, highway, water, air transport and joint transport Transport contract A lawsuit brought on a dispute shall be under the jurisdiction of the people's court of the place where the transportation originated, the destination or the defendant has his domicile.

II terminate a contract What are the legal consequences

（1） Treatment basis

rescission of a contract after Creditor's rights and debts How to deal with this problem is quite complicated. Generally speaking, after the termination of the contract, if the contract has not been performed, the performance shall be terminated; If the contract has already been performed, the parties may, depending on the performance and the nature of the contract, demand restoration, other remedial measures and compensation for losses. Performance refers to the performance status of the contract after the contract is dissolved, and the specific conditions of both parties. The nature of the contract refers to what type of contract is business contract , or Lease contract perhaps service contract 。 Different contracts have different treatment methods.

（2） Legal consequences

1. Restoration refers to the restoration to the state before the contract is made. When restoring the original state, if the original thing exists, it shall be returned; if the original thing does not exist, it can be returned with the same kind of thing if it is a kind of thing. Restoration also includes:

(1) Arising from the return of property Fruits ;

(2) Pay the necessary expenses incurred by one party to maintain the property during its possession;

(3) Necessary expenses incurred for returning property.

2. Other remedial measures, including request for repair, replacement, rework, price reduction and payment Liquidated damages Measures to compensate for losses.

3. Compensation for losses

According to Chinese laws, the scope of damages after the contract is terminated can be determined in the following ways:

(1) If the contract is terminated by agreement, and the parties have exempted the other party from liability for damages in the agreement, they may not claim compensation after the agreement becomes effective;

(2) If the contract is terminated due to force majeure, it shall not be liable for damages. However, if, after the occurrence of force majeure, remedial measures should be taken to reduce the expansion of the losses, and if they fail to do so, they shall be liable for compensation for the expanded losses;

(3) If the rescission is only effective in the future, the breaching party shall compensate the other party for the losses caused by the breach of contract; If the termination is retroactive, the breaching party shall pay the costs incurred by the aggrieved party for concluding the contract, preparing to perform the contract and restoring the original state;

(4) The amount of damages shall include the benefits that can be obtained after the performance of the contract, but shall not exceed the losses that may be caused by the breach of the contract that the party in breach of the contract foresaw or should have foreseen when concluding the contract.

To sum up, the contract signed by both parties will stipulate the behaviors of both parties, as well as liquidated damages Breach of contract In case of any dispute, it can be handled in the local court. If it involves a large amount of money, it is better to sue in the Supreme People's Court to solve the contract dispute cases more easily.