The Beijing No.1 Intermediate People's Court recently made a final judgment on a dispute over a sales contract in which a developer made a late delivery, resulting in the owner claiming liquidated damages. The court found through trial that although part of the house price was paid by way of loan, the developer had received the full house price of 2803 12 yuan, and should pay the liquidated damages according to the proportion of total house price 1%, so the developer was awarded the liquidated damages of 2803. 12 yuan. In addition, the developer should also compensate the owner for economic losses including rent, insurance premium, stamp duty and loan interest, totaling RMB 15506.26 yuan.
On September 7th, 2002, Mr. Xue signed a Commodity House Purchase and Sales Contract with Beijing Rong Feng Real Estate Development Co., Ltd., stipulating that Mr. Xue would buy a house in Rong Feng Jiayuan from Rong Feng Company, with a total purchase price of RMB 2,803 1 2 yuan. Rong Feng Company delivered the house before February1of the same year, and it was stipulated in the Seller's Liability Clause for Late Delivery.
After signing the contract, Mr. Xue paid the down payment of 603 12 yuan on the same day. Mr. Hou Xue signed the Mortgage Loan Contract with Bank of China, Beijing Branch and Rong Feng Company, and went through the mortgage loan procedures.
However, as late as June 1 day, 2003, Rong Feng Company informed Mr. Xue to go through the check-in formalities, and Mr. Xue has been renting a house outside since June 1 day, 2003. Mr Xue believes that Rong Feng's late delivery has constituted a breach of contract. The negotiation between the two parties failed, and Mr. Xue filed a lawsuit with the court, demanding the termination of the commercial housing sales contract, and claiming the purchase price, double deposit and liquidated damages. , totaling more than RMB 370,000.
During the trial of the case, all parties agreed to terminate the Commodity House Sales Contract and the Housing Mortgage Loan Contract. However, Rong Feng Company stated that the liquidated damages should be paid at the rate of 1% of the accumulated house price paid by the buyer, not at the rate of 1% of the total house price.
The First Intermediate People's Court held that Rong Feng Company's late delivery constituted a breach of contract and should pay liquidated damages. In terms of the calculation method of liquidated damages, the court held that the liquidated damages stipulated in the contract were calculated according to the "paid house payment". Although most of the house price was paid by bank loans, in fact, the developer got all the house price agreed in the contract, so the liquidated damages should be calculated according to all the house price.
At the same time, according to the provisions of the Contract Law, when the liquidated damages are insufficient to compensate for the losses, the parties may request an increase. The First Intermediate People's Court held that Mr. Xue's losses should include: rental loss, loan interest loss, insurance premium loss and stamp duty loss caused to Mr. Xue by five months' overdue delivery, totaling18,000 yuan. After deducting the penalty of more than 2,000 yuan, Rong Feng Company should also compensate Mr. Xue15,506 yuan and 26 points at one time.