Legal analysis
If one party fails to perform the contractual obligations or fails to meet the contractual obligations, it shall be liable for breach of contract, such as continuing to perform, taking remedial measures or compensating for losses. Accordingly, there are three basic forms of liability for breach of contract, namely, continuing to perform, taking remedial measures and compensating for losses. Of course, in addition, there are other forms of liability for breach of contract, such as liquidated damages and deposit liability, and continue to perform. It means that if the contractual obligations are not fulfilled or the performance is not in conformity with the agreement, the observant party may require the defaulting party to continue to perform as agreed until the purpose of the contract is achieved and remedial measures are taken. It means that the quality of the subject matter of debt performance does not meet the conditions agreed in the contract, and the purpose of the contract or the purpose that the observant party considers satisfactory can be achieved only by taking appropriate remedial measures without further performance. For example, if the quality of the delivered product does not conform to the agreement, the injured party may reasonably choose to ask the other party to bear the liabilities for breach of contract such as repair, replacement, rework, return, reduction of price or remuneration and liquidated damages according to the nature of the subject matter and the size of the loss. It refers to the way of liability for breach of contract that when one or all parties breach the contract, the breaching party must pay a certain amount of money to the observant party to compensate for the losses of the observant party and punish the breach. After assuming the liability for breach of contract, whether to continue to perform or take remedial measures can be determined by the parties to the contract through consultation. However, if the parties agree to pay liquidated damages for delayed performance, the breaching party shall also pay debts and compensation after paying the liquidated damages. It means that the parties agree in the contract that if one party causes actual damage to the other party due to breach of contract, it shall pay compensation according to the actual amount of damage. After the parties perform their obligations or take remedial measures, if the other party has other losses, it shall compensate for the losses.
legal ground
Article 577 of the Civil Code of People's Republic of China (PRC), if one party fails to perform the contractual obligations or the performance of the contractual obligations does not conform to the agreement, it shall bear the liabilities for breach of contract such as continuing to perform, taking remedial measures or compensating for losses.