The case was introduced to a construction company to undertake a renovation project, urgent need to use, install a number of lamps, so they went to a lighting dealer in Dongguan to order, the two sides signed a contract, and agreed that Dongguan dealers must be delivered within 15 days according to the contract. In order to fulfill the contract, Dongguan dealers immediately signed an order with a lighting fixture factory in Guzhen in accordance with the contract signed with the builder. The amount was 30,000 yuan, and it was agreed that if one party breached the contract, it would have to pay a penalty of 10,000 yuan. After receiving the goods, Dongguan dealers found that the goods delivered by a lighting electrical appliance factory in Guzhen were inconsistent with the number of contracts scheduled, and they lacked the necessary accessories. Dongguan dealers asked a certain lighting and electrical appliance factory in Guzhen to make up the number and accessories, but a lighting fixture factory in Guzhen was pushed for various reasons. On the other hand, the behavior of a lighting electrical appliance factory in Guzhen made it impossible for Dongguan dealers to provide the contractors with the contracted lamps as scheduled, and the builders demanded that the Dongguan dealers bear the liability for breach of contract and compensate for the losses caused. In desperation, Dongguan dealers came to our department to consult and seek solutions. Case analysis This case involves two contractual relationships. A builder is a contractual relationship with a lighting distributor in Dongguan. A lighting dealer in Dongguan is in a contractual relationship with a lighting electrical appliance factory in Guzhen. According to the relevant provisions of the "Contract Law of the People's Republic of China": the contract is the agreement between the natural person, the legal person, and other organizations that establish the same, change, and terminate the civil rights and obligations. In this case, a lighting distributor in Dongguan could not perform the contractual obligations in accordance with the contract, in violation of its contractual agreement with the builder, and should bear the liability for breach of contract to the builder according to law. The builder requested the Dongguan dealer to bear the liability for breach of contract and compensate for the damage caused. The loss is in compliance with the law, because both parties should perform their contractual obligations in accordance with the contract, and any party that violates the contractual obligations should bear the liability for breach of contract and compensate the defendant for the loss. Perhaps the readers will think that the breach of contract by Dongguan dealers is also a last resort. Is it not very embarrassing to let them assume the liability for breach of contract? In fact, according to the relevant provisions of the contract law: if one of the parties causes a breach of contract due to a third party, it shall be liable to the other party for breach of contract. That is to say, the Dongguan dealer in this case is due to the breach of contract of a lighting electrical appliance factory in Guzhen, which caused the builder to default, but the Dongguan dealer still has to bear the liability for breach of contract to the builder. So, how can the loss of Dongguan dealers be recovered? According to the relevant provisions of the "Contract Law of the People's Republic of China", after the parties have assumed the responsibility, they can pursue the responsibility of the third party according to law and recover the third party, thus safeguarding their legitimate rights and interests. In other words, after the Dongguan dealer has assumed the liability for breach of contract to the builder, he can pursue the liability for breach of contract of a lighting electrical appliance factory in Guzhen. Therefore, in this case, we should treat the two breaches of contract separately, and we cannot directly ask a lighting and electrical appliance factory in Guzhen to directly bear the liability for breach of contract and compensate the loss to the builder. A lighting distributor in Dongguan was unable to provide the contractor with the contracted lighting fixtures as scheduled, and should bear the liability for breach of contract and compensation for the loss to a builder; the lighting fixture factory in Guzhen did not fulfill the contractual obligations in time, resulting in the Dongguan dealers’ construction If the dealer breaches the contract, the Dongguan dealer can bear the legal responsibility for a lighting electrical appliance factory in Guzhen after he has assumed the liability for breach of contract. On the other hand, a lighting dealer in Dongguan can request a certain lighting and electrical appliance factory in Guzhen to pay liquidated damages according to the contract, and at the same time, it can also require a certain lighting electrical appliance factory in Guzhen to bear the corresponding liability for breach of contract. Liquidated damages are: payments made in advance of a breach of contract by the parties in advance, independent of travel. According to Article 114 of the Contract Law of the People's Republic of China: The parties may agree that a party shall pay a certain amount of liquidated damages according to the breach of contract when the party breaches the contract; the liability for breach of contract, also known as the civil liability for breach of contract, means The liability of the parties to the contract for breach of contractual obligations. According to Article 107 of the Contract Law of the People's Republic of China: If one of the parties fails to perform the contractual obligations or fulfills the contractual obligations and does not comply with the contract, it shall be liable for breach of contract, such as continuing to perform, taking remedial measures or compensating for losses. In this case, in the contractual relationship between a lighting distributor in Dongguan and a lighting electrical appliance factory in Guzhen, the two parties have an agreement to pay a penalty of 10,000 yuan if one party violates the contract. Therefore, in the case of a breach of contract in a lighting electrical appliance factory in Guzhen, Dongguan lighting distributors have the right to request a lighting electrical appliance factory in Guzhen to pay liquidated damages in accordance with the contract. At the same time, Dongguan dealers can also request a lighting and electrical appliance factory in Guzhen to continue to perform in accordance with the relevant provisions of the contract law. In short, it is possible to request a lighting and electrical appliance factory in Guzhen to replenish parts and unsold goods in accordance with the contractual agreement between the two parties. ), or directly request to cancel the contract signed by both parties, thereby canceling the contractual relationship between the two parties. It should be noted that, in accordance with the relevant provisions of Chinese laws, liquidated damages, damages, liquidated damages and continued performance can be used simultaneously, and the observant has the right to choose. In addition, if the observant party chooses to terminate the contract, it does not affect its right to assume breach of contract and claim damages against the defaulting party. On the other hand, it should be noted that the observant party is required to continue the performance of the defaulting party or to terminate the contract, and the observant party has the right to choose, and the observant party may decide according to the actual situation. Attorneys suggest that through the analysis of this case, it can be seen that Dongguan dealers can completely protect their legitimate rights and interests through legal channels after they have assumed responsibility for breach of contract. The author advises the majority of business friends to operate in good faith in accordance with the law, so as to avoid unnecessary disputes. At the same time, in the process of production and operation, the majority of business friends, if their legitimate rights and interests have been violated, should take up the legal weapons and safeguard their legitimate rights and interests in accordance with the law. According to Article 114 of the Contract Law of the People's Republic of China: The parties may agree that a party shall pay a certain amount of liquidated damages according to the breach of contract when the party breaches the contract; the liability for breach of contract, also known as the civil liability for breach of contract, means The liability of the parties to the contract for breach of contractual obligations. According to Article 107 of the Contract Law of the People's Republic of China: If one of the parties fails to perform the contractual obligations or fulfills the contractual obligations and does not comply with the contract, it shall be liable for breach of contract, such as continuing to perform, taking remedial measures or compensating for losses. In this case, in the contractual relationship between a lighting distributor in Dongguan and a lighting electrical appliance factory in Guzhen, the two parties have an agreement to pay a penalty of 10,000 yuan if one party violates the contract. Therefore, in the case of a breach of contract in a lighting electrical appliance factory in Guzhen, Dongguan lighting distributors have the right to request a lighting electrical appliance factory in Guzhen to pay liquidated damages in accordance with the contract. At the same time, Dongguan dealers can also request a lighting and electrical appliance factory in Guzhen to continue to perform in accordance with the relevant provisions of the contract law. In short, it is possible to request a lighting and electrical appliance factory in Guzhen to replenish parts and unsold goods in accordance with the contractual agreement between the two parties. ), or directly request to cancel the contract signed by both parties, thereby canceling the contractual relationship between the two parties. It should be noted that, in accordance with the relevant provisions of Chinese laws, liquidated damages, damages, liquidated damages and continued performance can be used simultaneously, and the observant has the right to choose. In addition, if the observant party chooses to terminate the contract, it does not affect its right to assume breach of contract and claim damages against the defaulting party. On the other hand, it should be noted that the observant party is required to continue the performance of the defaulting party or to terminate the contract, and the observant party has the right to choose, and the observant party may decide according to the actual situation. Attorneys suggest that through the analysis of this case, it can be seen that Dongguan dealers can completely protect their legitimate rights and interests through legal channels after they have assumed responsibility for breach of contract. The author advises the majority of business friends to operate in good faith in accordance with the law, so as to avoid unnecessary disputes. At the same time, in the process of production and operation, the majority of business friends, if their legitimate rights and interests have been violated, should take up the legal weapons and safeguard their legitimate rights and interests in accordance with the law.
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