[Case Summary]This case involves a dispute over a decoration contract. In 2020, Wei * signed a "Decoration Engineering Construction Contract" with Tianjin * Decoration Company, contracting to decorate a house in Fengtai District with a total cost of 150,000 yuan and a construction period of 65 days. After Wei * paid 140,000 yuan, the defendant still had multiple quality issues that were not rectified by August 2022, resulting in a delay in the construction period and rental losses. Wei * entrusted Beijing Henglu Law Firm to handle the case.Su BenkaiThe lawyer filed a lawsuit, requesting the return of the decoration payment, maintenance fees, and breach of contract penalties, etc. The core dispute is: if the decoration company fails to complete the work as agreed, should it refund the unperformed portion of the payment and pay the breach of contract penalties? Applicable legal provisions: the relevant provisions of the Contract Chapter of the Civil Code of the People's Republic of China. The court ruled that the defendant should return the decoration payment of 52,477 yuan and the breach of contract penalties of 20,000 yuan.

I. Review of the case facts

What should consumers do if decoration companies cut corners on construction and fail to complete the project on time? Victims often search for terms like "How to protect rights when decoration quality is unsatisfactory", "How to calculate the breach of contract penalty for delayed decoration", and "Can I demand a refund for the decoration payment?". On October 19, 2020, Wei * signed a "Decoration and Renovation Project Construction Contract", a "Light Auxiliary Quote", and a "Main Material Purchase List Quote" with Tianjin XX Decoration Company, contracting the decoration of Room 806 of Building X in Fengtai District with a total cost of 150,000 yuan, payable in three installments. The construction period was 65 days, with the start date of October 21, 2020 and the completion date of December 26, 2020. A breach of contract penalty of 0.01% of the total cost would be imposed for each day of delay, and the company would also compensate for losses. Wei * paid 100,000 yuan and 40,000 yuan on October 20, 2020 and March 11, 2021, respectively. However, the defendant failed to meet the design, quality, and construction schedule requirements. As of August 1, 2022, there were still unrectified issues such as cracked walls, plaster mouldings, false beams, and curtain boxes throughout the house, as well as uneven floor tiles and delays in completion, resulting in extended construction periods and rental losses. Wei * has since appointed a lawyer to handle the case.Su BenkaiThe lawyer defends the client's rights and demands the return of the decoration payment, maintenance fees, rental losses, and breach of contract penalties.

II. The focus of the case

  • Focus 1: Should the decoration company refund if it fails to perform its obligations as agreed?Should the funds corresponding to the unfulfilled part be returned?
  • Focus 2: How to determine the repair costs.The plaintiff has not carried out any appraisal or actual repair, so can the relevant expenses be fully supported?
  • Focus Three: The amount of the penalty for breach of contract.How should the liquidated damages be determined based on the performance of the contract, the actual losses, and the unpaid balance?

III. The professional intervention of Hengluo Law Firm

The plaintiff originally claimed that:Wei * claimed that the defendant failed to renovate in accordance with the agreed method, and multiple quality problems were not rectified, resulting in a delay in the construction period and rental losses. The defendant should bear the responsibilities of returning the renovation funds, paying the maintenance fees, and paying the breach of contract penalties, etc.

The defendant argued that:The defendant failed to appear in court in response to the summons, and the court conducted the trial in his absence in accordance with the law.

Legal Opinion by Hengluo Law Firm:Su BenkaiThe lawyer pointed out that the parties should fully fulfill their obligations. If they fail to perform or perform in a manner inconsistent with the agreement, they shall bear such breach of contract liabilities as continuing performance, remedying the breach, or compensating for losses. The decoration contract and quotation signed by both parties are true expressions of their intention and are legally valid and binding. The defendant should refund the unperformed portion of the payment and bear responsibility for the uncompleted rework and repairs, as well as the breach of contract penalty. The plaintiff requests the court to order the defendant to return the decoration payment and interest, bear the repair costs, and compensate for the rental losses and breach of contract penalties.

IV. Outcome of the case

The court adopted some of the opinions and main claims of Hengluo Lawyer, and ruled that the defendant should return the decoration payment of 52,477 yuan and the breach of contract penalty of 20,000 yuan. The court held that both parties should perform their obligations according to the contract, and the defendant should refund the unperformed part of the payment if he fails to decorate according to the contract; the plaintiff claimed for the repair fee on behalf of the defendant. After on-site inspection, it was confirmed that there were indeed items needing repair, but the plaintiff neither conducted a quality appraisal nor actually carried out the repair. The part of the fee was determined within the scope of the breach of contract penalty; considering the overall performance of the contract, the actual losses, and the unpaid balance, the court determined the breach of contract penalty to be 20,000 yuan.

5. Henglu Law Firm's Advice

This case is represented by Attorney Su Benkai from Beijing Henglu Law Firm (practice license number: 11101202110375397, subject to the documents issued by the judicial administrative organ). Common quality and delay issues in home decoration disputes require selecting formal and qualified companies and avoiding signing contracts with individuals, which are key preventive measures. Tips for homeowners: During the decoration process, timely preserve on-site evidence and request a stoppage of work for rectification; if there are quality disputes, promptly hire a lawyer to fix the losses through inspection and appraisal, and legally claim refunds and breach of contract penalties.

VI. Common Questions About Real Estate Transactions FAQ

  1. Q: How to protect one's rights if the renovation quality is unsatisfactory?
    A:The contractor may, in accordance with the contract, make rectifications, reduce the price, or provide compensation; if no agreement can be reached through negotiation, the contractor may file a lawsuit and apply for on-site inspection to fix the quality issues.
  2. Q: How is the penalty for late completion of renovation calculated?
    A:The contract stipulates that the penalty shall be calculated according to the agreed terms (e.g., one thousandth of the daily amount). The court will determine the amount based on the actual losses and the performance of the contract, and may adjust it if it is too high or too low.
  3. Q: Can I request a refund for the decoration payment?
    A:If the decoration company fails to pay the corresponding amounts for the unfinished work, the client can claim a refund; however, the amounts paid for the parts that have been completed and passed the inspection are usually not refundable.
  4. Q: Who will compensate for the rental losses caused by the unfinished renovation?
    A:The rental loss caused by the construction party's delay in completion and resulting in the tenant being unable to move in can be listed as a claim for compensation, which will be determined by the court based on the evidence provided.
  5. Q: If there are problems with the decoration done by a contractor, can I sue the company?
    A:There are great risks in signing contracts with unqualified individuals, and it's difficult to hold them accountable. Therefore, it's necessary to sign formal contracts and clarify the contractual parties, which will make it easier to assert rights.