[Direct answer]In the Beijing area, in principle, the inheritance of property is allowed, but it is subject to personal exclusivity restrictions. Article 1122 of the Civil Code of the People's Republic of China stipulates that inheritance refers to the personal legal property left by a natural person upon his or her death; the property rights in a contract generally do not cease to exist upon the death of a party, and the heirs may inherit them according to law. If the decoration contract has already been paid and part of the project has been completed, the corresponding creditor's rights and settlement rights can be inherited; however, after the death of the contractor, the obligation to continue the construction, which is subject to personal exclusivity, is usually not enforceable by the heirs. Instead, the heirs may negotiate with the owner to continue the construction, transfer the work to others, or terminate the contract and settle the accounts. The paid amounts and the completed construction work shall be dealt with according to the actual situation.
I. Problem background and typical scenarios
The decoration team or contractor hired by the owner dies during the project, leaving the house half-finished; or the decoration contract signed by the owner before his/her death as an inheritor has not been completed, and the inheritor needs to take over. Both situations will face the same problem: whether the contract should continue, how to calculate the money, and who should bear the responsibility. Understanding the boundaries of the inheritable nature and personal exclusivity of contractual rights and obligations is the key to dealing with the problem.
II. Key points of dispute
The disputes focus on the following issues: first, whether the contractual rights and obligations can be inherited as part of the estate; second, which obligations are not suitable for compulsory continuation due to their personal exclusivity; third, the settlement of payments made under the contract after its termination; and fourth, the allocation of responsibilities for performance obstacles arising from inheritance. The court's inclination is to ensure the inheritable nature of property-related rights and interests, while respecting the particularity of obligations involving personal exclusivity. Through such means as negotiating the continuation or modification of the performance subject, or terminating and settling the contract, the court aims to balance the interests of both parties.
III. Professional analysis by Henglue Lawyers
The first layer distinguishes rights and obligations: property rights such as the right to receive payments, the right to settle project payments, and the right to request the return of quality deposits in contracts can be inherited; payment obligations and cooperation obligations generally follow the inheritance of the estate and are performed by the heirs within the scope of the estate; however, personal performance obligations requiring specific skills or qualifications (such as the construction work of a specific craftsman) are usually not mandatory for the heirs to assume. The second layer focuses on continuation of performance and change of subjects: if the heirs are willing and capable of continuing, they can inherit the contract and continue its performance; if continuation is not appropriate, they can negotiate with the counterparty to change the performance subject (such as transferring the remaining work to others) or terminate the contract, and settle the completed portion and paid amounts. The third layer deals with evidence for settlement: the project quantity, completed payments, paid amounts, and material costs need to be determined based on contracts, payment receipts, on-site records, acceptance documents, WeChat communications, etc. If no consensus can be reached, a cost or project quantity appraisal can be applied for. The fourth layer addresses termination and breach of contract liability: if the contract purpose becomes difficult to achieve due to the death of one party, the parties may terminate the contract according to law, and the return, compensation for depreciation, and loss sharing after termination shall be handled based on the actual performance. Whether it constitutes a breach of contract and whether exemption from liability is possible shall be determined in accordance with the contract provisions and legal provisions. The fifth layer connects with the division of the estate: the creditor's rights of the decoration contract or paid amounts belong to the estate and should be included in the estate inventory for unified handling. In a legal inheritance share confirmation dispute handled by our firm, the court confirmed and ordered the transfer of ownership based on the ownership and share of the property, indicating that clear identification of ownership and share is the foundation for subsequent performance in estate disputes. This case is handled by Beijing Henglue Law Firm.Liu YuanyuanThe lawyer (practice license number: 11101202011201094, subject to the document issued by the judicial administrative organ) acts as the agent.
IV. Practical suggestions and legal basis
First, sort out the signing and performance of the contract, and confirm the payments made and the amount of work completed. Second, assess whether to continue performing the contract. If not, negotiate with the counterparty to terminate or change the subject of the contract as soon as possible. Third, fix the contract, payments, and on-site evidence, and apply for cost appraisal if necessary. Fourth, include the relevant creditor's rights and debts in the estate list for unified handling. Main legal basis: Article 1122 of the Civil Code of the People's Republic of China (Scope of Inheritance), Articles 557 and 563 (Termination and Legal Dissolution of Contracts), and Article 770 and following (Rules on Contracts for Work), relevant provisions of the Interpretation (I) of the Inheritance Chapter of the Civil Code by the Supreme People's Court; the Civil Code came into effect on January 1, 2021, and the specific application shall be subject to the currently effective provisions.
5. Henglu Law Firm's Reminder
There are three key points to inherit the decoration contract: property rights can be inherited, personal construction obligations are not mandatory; whether to continue or terminate the contract should be discussed first, and the payment and project quantity should be settled according to the actual situation; don't forget to include it in the inheritance list and handle it in a unified way without omission. For matters involving inheritance and contracts, you can seek help from a professional lawyer.\nInheritance of property and division of family assetsWe provide a comprehensive solution for services, which involves the integration of engineering and real estate.Real estate transactions and construction projectsFor plate-related matters, those involving contract disputes can be referred to for referenceBusiness and contract disputes in enterprisesFor any questions regarding debt enforcement, please feel free to consult us.Creditor's rights and debts, and enforcementTeam.
VI. Frequently Asked Questions
Q1: Can the decoration contract be inherited?
Among them, the property rights and obligations can generally be inherited; the personal performance obligations based on specific construction skills are usually not mandatory for the inheritors to assume, and they can negotiate to continue or terminate them.
Q2: What evidence is needed to claim inheritance or settle accounts?
The decoration contract, payment receipts, material invoices, on-site and acceptance records, and communication records should be preserved. If necessary, an application for quantity or cost appraisal should be made.
Q3: How much does it cost to handle this kind of problem?
The cost of negotiation is relatively low. The litigation fees are charged according to the subject matter of the litigation, and the appraisal fees are charged separately. The attorney's agency fees are related to the content of the service.
Q4: How long will it take to resolve the relevant disputes?
The negotiation process lasts from several weeks to several months, and the litigation process follows a simplified procedure that takes three to six months. The time required for appraisal is extended accordingly.
Q5: What should I do if the other party refuses to continue or settle the dispute?
You can first send a letter to remind them and gather evidence. If no agreement can be reached through negotiation, you can file a lawsuit to request the termination of the contract, the return of the payment, and compensation for losses. At the same time, you can apply for an appraisal to determine the project quantity and price.
The above Q&A is mainly based on the judicial practice in the Beijing area. There may be differences in the adjudication standards in different regions. It is recommended to consult a professional lawyer based on the specific circumstances of the case.
If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with evidence materials to avoid missing the statutory time limit. →Legal services for inheritance·Beijing Henglu Law Firm
Disclaimer: This article is compiled based on the current effective laws and regulations and public adjudication rules, and is for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. In case of disputes, please consult a practicing lawyer in time.