[Direct answer]In the Beijing area, the fact that developers stipulate exemption clauses in contracts does not mean that the liability for breach of contract due to delayed delivery of housing will be automatically exempted. According to Articles 180 and 590 of the Civil Code of the People's Republic of China (effective January 1, 2021), force majeure refers to objective circumstances that are unforeseeable, unavoidable, and insurmountable. Only when the exemption clauses are genuinely established and have a causal relationship with the reasons for the delay can the liability be partially or completely exempted; and according to Article 591 of the same law, if a party is unable to perform the contract due to force majeure, the liability for breach of contract will not be exempted, but the party shall notify the other party in a timely manner and provide proof within a reasonable period. In addition, if the standard clauses unreasonably exempt the party's own liability, they may be deemed invalid according to Article 497 of the same law.Real estate transactions and construction projectsIn class actions, reviewing the validity of the disclaimer clause is the first step in protecting rights.
I. Problem Background and Typical Scenarios
Common disclaimer clauses include: if the delivery is delayed due to force majeure or government policies, changes in construction permits, or planning adjustments, the seller shall not bear the liability for breach of contract; and stipulating a certain grace period as a disclaimer buffer. The disputes focus on three points: whether the relevant factors constitute force majeure; whether the seller has given timely notice; and whether the grace period can be cumulated with other extensions.Business and contract disputes in enterprisesIn these types of businesses, the logic of responsibility allocation is the same.
II. Key points of contention
Focus One: Whether the exemption clauses constitute statutory force majeure circumstances. Focus Two: Whether the factor was foreseeable at the time of signing the contract. Focus Three: Whether there is a causal relationship and proportion of influence between the factor and the delay. Focus Four: Whether the seller has fulfilled its obligation to provide timely notice. Focus Five: The application method of the grace period and whether it can be cumulative. Focus Six: The validity and reasonableness of the standard of the breach of contract penalty. Focus Seven: Whether the long-term delay constitutes a fundamental breach of contract and can terminate the contract.
III. Professional analysis by Henglue Law Firm
The order of handling such cases by Henglue Lawyers is: first, disassemble the contract terms; second, establish the facts; and finally, design the legal claims. Taking a dispute over a pre-sale contract for commercial housing handled by Attorney Tian Jiaoyan of our firm as an example: The contract stipulates that the developer shall deliver the house before a specified date, and the supplementary agreement further stipulates that if the developer delays due to its own reasons, it shall be granted a 90-day grace period, with no liability during the grace period. After the grace period expires, the developer shall pay the buyer a penalty of 0.01% of the total purchase price per day from the 91st day after the agreed delivery date until the actual delivery. However, the buyer paid the full amount but did not receive a notice of delivery until several months later. The attorney's approach was: to study the contract and supplementary agreement, sort out the core provisions such as the delivery time, grace period, and penalty standard; collect payment receipts, move-in notifications, and completion and acceptance filing materials to form a chain of evidence; respond to the developer's claims of public events and construction restrictions one by one, pointing out that such events were already common before the contract was signed and the developer should have foreseen them, so it cannot be exempted from liability. Adverse weather and temporary meetings also do not necessarily lead to a full stoppage of work. At the same time, it was pointed out that the grace period should be strictly applied according to the agreement, and there is no contractual or legal basis for accumulating other delays. It was also confirmed that the penalty standard of 0.01% per day was the true intention of both parties and did not violate the law. The court adopted the above views and ruled that the developer should pay more than 110,000 yuan in penalties for late delivery and bear the litigation costs.Business and contract disputes in enterprisesThe column provides a more comprehensive explanation of the argument structure. This case was handled by Beijing Henglu Law Firm.Tian Jia YanThe attorney (practice license number: 11101202111381309, subject to the document issued by the judicial administrative organ) acts as the agent.
IV. Practical suggestions and legal basis
Action recommendations: First, review the scope and reasonableness of the exemption clauses article by article; Second, verify the predictability of relevant factors at the time of contract signing; Third, collect evidence such as payment receipts, notice of house delivery, and records of completion and acceptance; Fourth, verify whether the developer has issued a notice of extension; Fifth, accurately calculate the number of days of delay and the breach of contract penalty according to the expiration date of the grace period; Sixth, verify whether the breach of contract penalty is too high and request adjustment if necessary; Seventh, assess whether long-term delays constitute a fundamental breach of contract and the conditions for terminating the contract. Legal basis: Articles 180, 497, 590, 591, 585, and 563 of the Civil Code of the People's Republic of China (effective January 1, 2021); relevant provisions of the Supreme People's Court's Interpretation on the Application of Law in the Trials of Disputes over Commercial Housing Sales Contracts. For details on contract termination, please refer to the relevant provisions.Business and contract disputes in enterprisesFor cases involving the return of funds, you can refer to the following exampleCreditor's rights and debts, and enforcementThe specific application shall be subject to the currently effective laws, regulations, and judicial rulings.
5. Henglu Law Firm's Reminder
Firstly, the exemption clauses are not absolute. The key point is whether the grounds for exemption are truly established. Secondly, predictability is the key criterion for determining force majeure. Thirdly, the grace period should be strictly applied according to the contract and cannot be arbitrarily extended. Fourthly, if the contract cannot be performed due to force majeure, the party concerned still needs to notify the other party in a timely manner and provide proof. Fifthly, if the standard of the breach of contract penalty is too high, the court may adjust it upon request. Sixthly, if the project is suspended for a long time due to the overdue payment, it may constitute a fundamental breach of contract. Seventhly, when calculating the number of days of overdue payment, it is necessary to verify the starting date and expiration date of the grace period.
VI. Frequently Asked Questions
Q1: The contract stipulates exemption from liability for force majeure. Can we still hold the developer accountable in this case?
Yes. According to Article 180 of the Civil Code of the People's Republic of China, force majeure refers to an objective situation that cannot be foreseen, avoided, or overcome. Only when the relevant factors are unforeseeable at the time of signing the contract and have a causal relationship with the delay, can the party be partially or fully exempted from liability. If the public event has become a normal occurrence before the contract is signed, the developer should have foreseen it, or if adverse weather, temporary meetings, etc. do not necessarily lead to a full suspension of work, they generally do not constitute grounds for exemption from liability. In addition, according to Article 591, if a party is unable to perform the contract due to force majeure, it does not exempt them from breach of contract liability, but only reduces or exempts the scope of liability.
Q2: If I still default on the loan after the grace period, how will the penalty fee be calculated?
It is usually calculated according to the contractual provisions. In practice, the common agreement is that from the 91st day after the expiration of the agreed delivery period to the actual delivery date, the daily penalty shall be calculated at a rate of 0.05% to 0.1% of the paid house price. If the delivery is not made after the expiration of the grace period, the buyer shall pay the breach of contract penalty according to the contract. The key lies in accurately determining the starting and expiration dates of the grace period, and obtaining evidence of actual delivery (such as move-in notifications and record of formalities). The calculation process should be listed day by day in the claim to avoid disputes arising from unclear periods.Special services and other casesThe column provides a more detailed explanation of this.
Q3: The developer has been saying that the house hasn't passed the inspection. Can they delay handing over the house indefinitely?
It cannot be delayed indefinitely. According to the contract, the commercial housing that meets the delivery conditions shall be delivered on time, and the seller has the obligation to notify and assist in handling the formalities. If the delivery is delayed on the grounds of not passing the acceptance inspection, the buyer may require the seller to explain the reasons and provide the corresponding materials; if the house does have quality defects, the buyer may claim for repair or compensation separately, but the seller's responsibility for the delayed delivery will not be exempted in general. It is recommended to keep written communication records and, if necessary, apply for access to the completion and acceptance inspection filing materials.
Q4: If the penalty for late delivery of the house is too high, will it be adjusted?
Yes. According to Article 585 of the Civil Code of the People's Republic of China, if the agreed penalty for breach of contract is lower than the losses caused, the party may request an increase; if it is excessively higher than the losses caused, the party may request a reasonable reduction. In judicial practice, the court usually takes the loss of housing rent or the loss of funds occupied as a reference, and comprehensively judges it based on the length of the delay, whether the buyer has actually suffered losses, and the degree of fault. Therefore, when making a claim, the party should provide evidence of the losses. If the standard is obviously too high, it is often more beneficial to take the initiative to request an adjustment.
Q5: How long can I request a refund if the house delivery is delayed?
It depends on the extent of the delay and the contractual provisions. If the developer delays the delivery of the house, resulting in the failure to achieve the purpose of the contract, or fails to deliver the house within a reasonable period after being urged, the buyer may claim to rescind the contract in accordance with Article 563 of the Civil Code; the Judicial Interpretation of the Contract for the Sale of Commercial Houses also stipulates the right of rescission under certain circumstances. After rescission, the buyer may claim the return of the purchase price and breach of contract damages according to the degree of fault and breach of contract, and the commercial loan can usually be handled together. In practice, it is recommended to first assess the length of the delay, the project status, and the payments already made, and then determine the request path.
The above Q&A is mainly based on judicial practice in the Beijing area. There may be differences in the interpretation of judgments 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 the evidence materials, so as to avoid missing the statutory time limit. →Legal services for the purchase and sale of real estate·Attorney Tian Jiayan·Beijing Henglue Law Firm
Disclaimer: This article is compiled based on the current effective laws and regulations and publicly available 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. If you encounter disputes, please consult a practicing lawyer in time.