How does the court view the buyer’s breach of contract and the seller’s breach of contract in the dispute of house sale

2022-06-05 0 By

The default of second-hand house sale is not uncommon, for different reasons, the buyer and the seller may default.After so many years of market and legal education, in fact, many people have such a concept: breach of contract should bear the liability for breach of contract.Among them, liquidated damages are the most common and controversial.In practice, the standard contract provided by real estate agents is generally used, and the penalty proportion is directly set at 20%. Therefore, after a breach occurs, the dispute will further evolve into whether the defaulting party should pay 20% of the total value of the penalty to the non-defaulting party.However, in judicial practice, because each case has its own different case, it is impossible for a few laws to control the complex social life, to make a uniform evaluation of thousands of people.I often say, only half jokingly, that cases are metaphysical, and that it is impossible, like a computer program, to put in conditions here and there and get the same result every time.Let’s compare two cases in Shenzhen, one is the buyer’s breach of contract, the other is the seller’s breach of contract. The similarity between the two is that they are both confirmed to be in breach of contract, and neither of them supports 20% penalty.Case 1: the buyer have no performance, take a small amount of the liability to pay compensation case number: (2022) (0307 no. 5 in the early days of XXX overview: in 2020, Mr Ho and Mr Law signed the “building business contract”, Mr Ho to transfer somewhere located in longgang district, shenzhen city housing to Mr Law, at 32 million, and the method of agreement within 7 days of Mr Pay a deposit of 3.8 million yuan.However, seven days later, Mr. Fa did not pay the deposit, citing that he was not in Shenzhen and was busy with work.After repeated urging, Mr. Fa did not pay.Mr. He sued Mr. Law to the court, requiring Mr. Law to assume 3.8 million yuan of liability for breach of contract.The court ruled that Mr. He’s failure to perform the contract without reason constituted a breach of contract. However, Mr. He claimed that the penalty of 3.8 million yuan was obviously too high, and Mr. He had no evidence to prove his loss. The court decided that his loss was 50,000 yuan, so Mr. He was ordered to pay 50,000 yuan compensation to Mr. He.Case two: The seller has false publicity, only to return the deposit Case No. : (2021) Yue 03 Minzhong 2XXX Overview:Mr. Shang entrust somewhere is located in shenzhen yantian district housing intermediary company sold the house, such as “with” garden house information labeling, Mr Castle to see information, attracted by “with” garden, the mediation staff take the house, there are flat after confirm the housing area, then sign the sale and purchase contract, price 3 million yuan,A deposit of 160,000 yuan was paid that day.The next day, Mr. Suo to the property company to prove whether this building “with garden”, can freely use “garden space”, property company to deny.Mr. Suo and Mr. Shang again, Mr. Shang clear: can use the garden to negotiate with the property company.Mr. Suo thinks he is directed toward “garden” just choose to buy this house, and the false information that Still Mr. Produces caused misdirect, reason asks to remove the contract, return deposit, assume responsibility for breach of contract 600 thousand yuan.The court judgment: the seller Mr. Shang to “with garden” as a gimmick to release housing information, misleading potential buyers, and Mr. Suo really to “garden” as an important factor in deciding whether to buy a house, so Mr. Shang fault, Mr. Suo has the right to terminate the contract.But Mr. Suo could not prove the existence of what kind of loss, so did not pay 600,000 yuan of compensation claims.The court judgment, the termination of the two sales contract, Mr. Shang to Mr. Suo deposit and interest.First, the degree of fault is an important review content.It should be emphasized that 20% of the liability for breach of contract can be held in the event of non-performance of the contract. This is an extremely wrong view.In the civil legal relationship, when there is a contract breach, it is necessary to examine whether there is fault and the degree of fault, which is the basis of the case.Law cannot profit a man from the error of another.Although the functions of compensation and liquidated damages are different, the compensation focuses on compensation for losses, while the liquidated damages focus on punishment, the loss of the non-breaching party should still be considered in practice. It is impossible for the non-breaching party to profit from the fault of the breaching party, which is a significant profit.Such is the case in case 1 mentioned above.Although the buyer is at fault for not performing the contract, such fault does not cause losses to the seller. If the claim of liquidated damages as high as 3.8 million yuan is based on this, it cannot be supported by law.The plaintiff bears the key burden of proof.Generally speaking, the plaintiff is the non-breaching party and has the demand to Sue. However, in practice, some people only submit simple evidence such as contract and transfer record, and then claim high compensation or liability for breach of contract, which is the “risky behavior” in litigation.The plaintiff should bear the burden of proof for his claim, and the claim for compensation and liquidated damages should also have corresponding evidence. Otherwise, in the above two cases, whether the buyer sues or the seller sues, neither evidence is adequately provided, and the court does not support the high claim for compensation and liquidated damages.Finally, it should be pointed out that we can not of course believe that there is no high compensation of 20% liquidated damages in disputes over housing sales.In practice, there are different situations such as no support, partial support and full support, and they all have corresponding cases, all happen in the same region, and the same court makes the decision.This is not the same case of different sentencing, in fact is caused by different cases.It is the professional scope of professional lawyers to sort out the facts, extract the cocoons and summarize the focus of different cases, and put forward the corresponding factual basis and legal basis.(End) Photo by Liang Ming