[Direct answer]In the Beijing area, if a party delays in performing its main obligations and fails to perform them within a reasonable period after being reminded, the party in compliance has the right to rescind the contract in accordance with Article 563 of the Civil Code of the People's Republic of China. The reminder shall be made in a written or other traceable manner; the law does not set a uniform time limit for a reasonable period, which needs to be comprehensively judged in light of the nature of the contract, transaction practices, and the possibility of performance. Generally, a reasonable grace period can be agreed upon or determined. The right to rescind the contract must be exercised within one year from the date when the party knows or should have known the grounds for rescission. If the right to rescind the contract is not exercised within the time limit, it shall be extinguished. It is recommended to send a reminder letter first and keep the evidence of delivery. If the other party still fails to perform after the grace period expires, you can notify them of the rescission of the contract; if no agreement can be reached, you can sue to confirm the effectiveness of the rescission. For more details, please refer to the following link:Legal services for corporate commercial and contract disputes.

1. Problem background and typical scenarios

Delay in performance is the most common form of breach of contract in contractual practice. Typical scenarios include: the supplier failing to deliver the goods on time, the contractor completing the work late, the buyer delaying payment of the purchase price, and the lessee paying the rent late, etc. Many parties who comply with the contract mistakenly believe that the other party will automatically terminate the contract once it is overdue, or wait passively and miss the deadline for exercising the right of rescission. In fact, delay in performance does not necessarily lead to the termination of the contract. Except for fundamental breach of contract, it usually requires a reasonable grace period after the reminder procedure, and the party that fails to perform after the grace period expires may then rescind the contract. Such disputes are often accompanied by the recovery of the purchase price and the calculation of losses, and can be combined with other legal procedures to protect the legitimate rights and interests of the parties involved.Creditor-debtor relations and enforcement case servicesHandle them together.

II. Key points of dispute

The focus of the dispute over the rescission of the contract is concentrated on three points. Firstly, whether the delay in performance constitutes a breach of the main obligation: Generally, a delay in the performance of a secondary obligation cannot directly lead to the rescission of the contract, and it must affect the achievement of the contractual purpose. Secondly, how to determine a reasonable time limit: The law does not stipulate a fixed number of days. The court shall determine it according to the type of contract, industry practices and possible remedies. If there is an agreement, it shall be governed by the agreement. Thirdly, whether the right to rescind the contract has been exercised beyond the time limit: According to Article 564 of the Civil Code, the right to rescind the contract shall be extinguished within one year from the date when the party knows or should know the grounds for rescission. If the right to rescind the contract is not claimed within the time limit, the party will lose the right to rescind the contract. For disputes over the performance of real estate-related contracts, reference can be made to the relevant provisions of the Civil Code.Real estate sales and construction project servicesThe referee's standard of judgment.

III. Professional analysis by Hengluo Lawyers

Taking a contract dispute handled by our firm as an example, the plaintiff signed an agreement with the defendant and paid the money to help their child settle down in Beijing. However, due to policy changes, the purpose of the agreement failed to be achieved, so the plaintiff entrusted a lawyer to claim the invalidity of the agreement and recover the payment. In terms of timeline, the parties signed the agreement in March 2023 and paid 100,000 yuan on the same day. Later, the dispute arose due to the failure to settle down in Beijing due to policy restrictions. Regarding the amount involved, the total payment was 100,000 yuan. In terms of the parties' claims, the client argued that the agreement to evade household registration policies through false marriage violates public order and good customs and should be invalidated, demanding the return of the money. The defendant did not appear in court to present a defense. After Henglu Law Firm intervened, it comprehensively collected the agreement, transfer records, and communication evidence, citing Article 152 of the Civil Code to argue that the agreement was invalid from the outset due to violating public order and good customs, and demanded the return of the property according to Article 157. The court held that the agreement violated public order and good customs by evading household registration policies through false marriage, and was invalid from the outset according to Article 152 of the Civil Code. As a result, the court ruled that the defendant, as the direct recipient of the payment, should return 100,000 yuan within a specified period. This case was handled by Beijing Henglu Law Firm.Xue SuhuaThe attorney (practice license number: 11101201211769926, subject to the document issued by the judicial administrative organ) acts as the agent.

IV. Practical suggestions and legal basis

The core basis is Article 563 of the Civil Code of the People's Republic of China (implemented on January 1, 2021) (Statutory Right of Rescission: If a party delays in performing its main obligation and fails to perform within a reasonable period after being reminded, the other party may rescind the contract), Article 564 (Time Limit for Exercising the Right of Rescission: If the right of rescission is not exercised within one year from the date when the party knows or should have known the grounds for rescission, the right of rescission shall be extinguished), Article 565 (The party shall notify the other party of the rescission of the contract, and the contract shall be rescinded upon the receipt of the notice) and Article 566 (Consequences of Contract Rescission). Practical suggestions: When concluding a contract, stipulate clear performance deadlines and grace periods for reminders; if the other party fails to perform within the grace period, send a written notice and keep the mailing receipts; if the other party still fails to perform after the grace period expires, send a notice of rescission; pay attention to the one-year preclusion period, and the party will lose its right to claim if it fails to assert its rights within the time limit. In cases involving disputes over the validity of the contract, it can be combined with other relevant provisions.Intellectual property protection and corporate legal servicesEvaluate the transaction structure.

5. Henglu Law Firm's Advice

When urging the other party to fulfill their obligations, it is essential not to rely on verbal reminders or wait in a passive manner. The first step is to collect evidence of the other party's delay in performance (delivery notes, account statements, communication records); the second step is to send a written reminder letter, clarifying the content of the performance and the reasonable grace period, and retaining the delivery receipt; the third step is to issue a notice of termination if the other party still fails to perform after the grace period expires, to avoid exceeding the one-year exclusionary period; and the fourth step is to promptly file a lawsuit to confirm the effectiveness of the termination if there are disputes over the termination's validity. It is crucial not to assert rights after the right to terminate has been extinguished, nor to directly terminate the contract without issuing a reminder, which may result in the plaintiff's own breach of contract. If professional support is needed, one can seek assistance from a professional lawyer.Special services and other case-related servicesDevelop a plan.

VI. Frequently Asked Questions

Q1: If the other party still fails to perform their obligations after being reminded, can I definitely succeed in terminating the contract?

Whether the rescission can be established depends on whether it meets the statutory conditions, rather than the result of the promise. If the other party delays in performing the main obligation, you have legally urged them to perform and given them a reasonable period, but they still fail to perform after the expiration of the period, rescission can usually be established according to Article 563 of the Civil Code; if the delay only involves secondary obligations and does not affect the purpose of the contract, or you have not urged them in accordance with legal procedures or exceeded the one-year exclusionary period, the rescission may be deemed invalid or even constitute a breach of contract on your part. It is recommended to first assess the nature of the breach of contract and the traceability of the urging, and then decide whether to notify the rescission. Never believe in unrealistic promises of victory.

Q2: To request the termination of the contract, what evidence do I need to prepare?

The core evidence includes: the original contract and the agreed upon performance period (to prove the content of the obligation and the due date), proof of the other party's delay in performance (delivery notes, acceptance records, account statements, unpaid payment vouchers), the written reminder letter sent by you and the delivery receipt (mailing receipt, signature record, or notarized delivery), the calculation basis of the grace period or reasonable period, and the notice of rescission and the delivery receipt. The organization of evidence revolves around three points: "delay in performance of the main debt—reminder sent—still not performed after the expiration of the reasonable period". If there are missing materials, they can be supplemented with correspondence and audio recordings. Never give up on the claim of rescission just because the evidence is weak.

Q3: How much will it cost in attorney's fees and litigation fees to sue to confirm the termination of the contract?

The litigation fees shall be paid in accordance with the "Measures for the Payment of Litigation Costs" and shall be paid in stages based on the amount of the litigation subject matter, and shall be borne by the losing party; if the court confirms the dissolution and claims damages, the fees shall be calculated based on the amount of the claim. The attorney's fees shall be charged on a per-case basis or according to a percentage of the litigation subject matter, subject to the terms of the engagement contract. There is no unified government pricing for these fees, and some cases can be negotiated, but subject to the upper limit of the contingency fee ratio. It is recommended to clarify the scope and upper limit of the fees before entrusting the case, and to evaluate the benefits and costs of litigation. For small-scale disputes, it is advisable to prioritize negotiation or send a lawyer's letter to apply pressure, so as to avoid excessive costs and economic inefficiency.

Q4: How long does it usually take from the issuance of a notice to the final termination of the contract?

In terms of procedure, the reminder itself does not have a mandatory time limit. The reasonable grace period is determined by agreement or discretion (commonly ranging from several days to several months). Once the grace period expires, the notice of termination is sent, and the contract is terminated upon the notice's arrival, without waiting for the court's approval. If the other party raises objections and sues to confirm the invalidity of the termination, the case will proceed to litigation: the first-instance ordinary procedure will be concluded within six months, and the summary procedure within three months. The appeal to the second instance generally takes three months. Overall, if there are no disputes, the notice will take effect upon its arrival; if there are disputes, it often takes several months or even a year from the reminder to the final determination. It is recommended to keep complete evidence of service during the reminder stage to shorten the dispute cycle.

Q5: If the other party delays in performance, what specific steps should I take to terminate the contract?

It is recommended to proceed in four steps: First, sort out the contractual deadlines and the other party's default facts, and fix the evidence of delayed performance; Second, send a written reminder letter, listing the obligations to be fulfilled and a reasonable grace period (such as 15 days or 30 days), and keep the receipt certificate through EMS; Third, if the other party still fails to perform after the grace period expires, send a notice of rescission, clearly rescinding the contract in accordance with Article 563 of the Civil Code, and attach a claim for damages; Fourth, if the other party raises objections or refuses to refund, sue within the statute of limitations to confirm the effectiveness of the rescission and seek compensation. Throughout the process, keep the letters and delivery records, and, if necessary, hire a lawyer to participate in the evaluation and negotiation.

The above content is based on the compilation of judicial practices in the Beijing area. The facts of individual cases and the jurisdiction of the court may affect the conclusions. Welcome to consult Henglu Law Firm about specific situations.

If you are currently facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the necessary evidence, to avoid missing the statutory time limit. →Business and commercial legal services·Attorney Xue Suhua·Beijing Henglu 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.