[Direct answer]In the Beijing area, if the same breach of contract also constitutes infringement, it is a concurrence of liabilities, and the injured party can only choose one to claim. According to Article 186 of the Civil Code of the People's Republic of China (effective January 1, 2021), if the breach of contract of one party damages the personal rights and property rights of the other party, the injured party has the right to choose to request the breaching party to bear breach of contract liability or infringement liability. If the injured party chooses the breach of contract path, it can claim for performance of the contract, breach of contract damages, and loss of expected benefits; if the injured party chooses the infringement path, the scope of compensation may be broader, but it needs to prove elements such as fault. According to Article 996, if the breach of contract damages the other party's personality rights and causes serious mental damage, choosing breach of contract liability does not affect the claim for compensation for mental damage. The choice of path should be based on a comparison of evidence and compensation scope, and reference can be made to this.Business and contract disputes in enterprisesColumn.
1. Problem background and typical scenarios
Responsibility conflicts often occur in several types of transactions: Firstly, if the purchased product has defects, it may cause fire or explosion during use, resulting in personal or property damage. In such cases, the dispute over personal rights and interests may refer to the overlapping of breach of contract and product infringement.Personal injury and medical disputesFirst, the host of a TV show or other media platform violates the contract and infringes the rights of the guests or the audience. Second, in storage and transportation contracts, the warehousekeeper or carrier damages or loses the stored goods or cargo. Third, damage to adjacent facilities during renovation and construction work. Fourth, problems in the performance of medical service contracts that also cause personal injury. Fifth, hidden defects in leased housing that result in losses for the lessee.
II. Key points of contention
The first focus is whether the concept of "competitive cooperation" applies, and whether the same act meets the constitutive elements of both breach of contract and infringement. The second focus is the scope for modification after path selection, and whether it is possible to change the case basis after litigation, which usually needs to be determined before a reasonable juncture. The third focus is the differences in evidentiary standards. Breach of contract generally does not require proof of fault, while infringement is based on the principle of fault. The fourth focus is the differences in the scope of compensation. Breach of contract compensation is subject to the rule of foreseeability, while infringement compensation is broader. The fifth focus is the differences in the starting point and duration of the statute of limitations. The sixth focus is that the same loss cannot be compensated twice, but different losses can be evaluated separately. When Beijing courts handle such cases, they usually strictly distinguish the boundaries of losses, and the specific standards shall be subject to the currently effective laws, regulations, and judicial rulings.
III. Professional analysis by Henglue Law Firm
Taking the arbitration case of a commissioned creation contract dispute handled by our firm as an example, we can observe the impact of the choice of liability path on the compensation items. On May 12, 2022, a Shanghai-based technology company and a Shenzhen-based online company signed a "Project Outsourcing Agreement", stipulating a production fee of 583,000 yuan. The other party paid an advance of 291,500 yuan. After the work was accepted on July 20, 2022, the other party delayed paying the remaining amount, and defended itself on the grounds of non-compliance with quality standards and delayed delivery, while unilaterally claiming to terminate the contract. Attorney Xiong Binrong of our firm represented the applicant in choosing the breach of contract path for arbitration. Relying on the acceptance records confirmed step by step and the provisions on delay liability, she claimed payment of the contract amount of 583,000 yuan, overdue payment penalties of 116,600 yuan, and attorney fees and arbitration fees. The arbitration tribunal adopted the main arguments, ruling that the other party should pay the contract amount of 583,000 yuan and compensate for all attorney fees, but only adjusted the amount of the overdue payment penalties. This case shows that after determining to take the breach of contract path, the compensation items should be based on the contract provisions, with penalties and attorney fees subject to contractual agreements. If the facts are more consistent with infringement situations, evidence should be organized along the infringement path. In another case of a reservation contract dispute handled by Attorney Zhu Guiying of our firm, the court ordered the defendant, who maliciously failed to lease the property, to compensate for the renovation costs of 365,000 yuan, which also demonstrates the clear path of claiming breach of contract compensation according to contract provisions. This case was handled by Beijing Henglu Law Firm.Xiong BinrongThe attorney (practice license number: 11101202211410897, subject to the document issued by the judicial administrative organ) acts as the agent.
IV. Practical suggestions and legal basis
Action suggestions: First, sort out the list of losses, distinguishing between property losses, personal injuries, and emotional damages, and then compare the coverage of the two paths; Second, check whether there are favorable provisions such as breach of contract penalties and lawyer's fees in the contract. Generally, it's easier to provide evidence for the breach of contract path if there are such provisions; Third, if claiming infringement, fix the evidence of fault and causality in time, such as inspection reports, on-site photos, and appraisal opinions; Fourth, pay attention to the three-year statute of limitations; Fifth, avoid receiving multiple compensations for the same loss. In terms of legal basis, Article 186 of the Civil Code of the People's Republic of China (effective January 1, 2021) stipulates the choice of exercising one of the concurrent liabilities, Article 577 stipulates the breach of contract liability, Article 584 determines the scope of loss compensation and the foreseeability rule, Article 1165 stipulates the fault-based tort liability, and Article 188 stipulates the three-year statute of limitations. For related procedural points, please refer to the relevant provisions.Special services and other casesColumn.
5. Henglue Law Firm's Reminder
Risk Alert: Firstly, it is not advisable to waver between competing remedies. It is essential to conduct a path assessment before filing a lawsuit. Secondly, under the breach of contract path, compensation for mental damage is generally not included. For serious infringements of personal rights, please refer to the connecting rules of Article 996 of the Civil Code. Thirdly, the statute of limitations and the burden of proof for the two paths are different. Delaying action may lead to failure on both fronts. Fourthly, during settlement negotiations, different claims can be used as bargaining chips, but ultimately, only one remedy can be chosen. For specific case path selection advice, please consult a professional.Beijing Henglue Law FirmOn the official website, similar columns are provided, where lawyers estimate the evidence and the scope of compensation based on the case.
VI. Frequently Asked Questions
Q1: After choosing a claim, can I still change it, or file a separate lawsuit?
Generally, under the concurrence of liabilities, after the injured party selects a right of claim and the case is adjudicated, the same fact cannot be sued again with another right of claim to avoid double compensation. If the case has not been adjudicated and the litigation request is changed within the evidence-gathering period, it can be adjusted in practice by communicating with the court. For different losses arising from the same act, if they have not been evaluated in the previous case, they can be claimed separately, subject to the current effective laws, regulations, and judicial rulings.
Q2: What evidence is required for claims of breach of contract and infringement of rights, respectively?
Breach of contract path: Contract text, performance certificates, payment and acceptance records, reminder letters, which can prove that the other party failed to perform according to the contract and the losses suffered by the plaintiff. Generally, there is no need to prove the fault. Infringement path: Evidence of fault and causality, such as accident scene records, inspection or appraisal reports, medical records, and expense receipts. It is recommended to collect all the evidence for both paths before suing and then make a comparison and selection.
Q3: Which path is more cost-effective, and what's the difference in cost?
The litigation fees are accumulated in stages according to the amount of the claim, but the difference lies in the claim amount and the probability of winning the case; the attorney's fees depend on the difficulty of providing evidence and the duration of the trial. The breach of contract path usually has lower evidentiary thresholds and shorter timeframes; the infringement path may offer broader compensation but higher evidentiary costs. If the contract stipulates that the attorney's fees shall be borne by the breaching party, the breach of contract path can also transfer this cost. It is recommended to first estimate the net recovery of the two paths before determining a strategy.
Q4: How long does it take to adjudicate such competing cases?
The first-instance ordinary procedure for breach of contract cases generally lasts no more than six months, and the summary procedure is concluded within three months; infringement cases involving injury, product quality, or loss assessment and appraisal may be extended by one to several months, and the second-instance procedure lasts about three months. For cases involving foreign parties or requiring multiple appraisals, the duration will be even longer. The key is to complete evidence fixation and path selection before filing a lawsuit, so as to reduce the time loss caused by changes during the process.
Q5: What should I do now?
The first step is to organize the contracts, losses, and communication evidence to determine whether there is concurrent liability. The second step is to compare the compensation scope, evidence collection difficulty, and statute of limitations of the two paths. The third step is to send a notice or claim letter and keep the delivery records. The fourth step is to sue through the selected path as soon as possible if no agreement is reached, and apply for property preservation if necessary. The fifth step is to recommend hiring a lawyer to coordinate matters for major loss cases. For reference only.Business and contract disputes in enterprisesThe column introduces similar processing methods.
This article is written based on the common judicial interpretations in the Beijing area. If the case occurs in other regions, it is recommended to consult local lawyers to verify the regional differences.
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. →Business and commercial legal services·Attorney Xiong Binrong·Beijing Henglue Law Firm
Disclaimer: This article is compiled based on the current effective laws and regulations and open 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.