[Direct answer]Yes, but usually, a reminder is required first. According to Article 563 Paragraph 1 of the Civil Code (effective January 1, 2021), if the buyer delays in fulfilling the main obligation of payment and fails to pay within a reasonable period (commonly 15 to 30 days in practice) after the seller's written reminder, the seller has the right to rescind the contract. If the buyer's late payment results in the failure to achieve the purpose of the contract, the seller may rescind the contract directly without a reminder. After rescission, the seller may require the return of the house or goods, restoration to the original state, and claim damages or compensation for losses in accordance with Articles 566 and 585. It is recommended to send a written reminder letter to fix the evidence first, and then decide whether to rescind the contract or file a lawsuit. This can be done through legal channels.Legal services for corporate commercial and contract disputesAndReal estate sales and construction project servicesThe team evaluates the plan.

1. Problem background and typical scenarios

Buyers' late payments are the most common form of breach of contract in sales contract disputes, particularly in second-hand housing transactions and business supply contracts. Common scenarios include: Second-hand housing buyers paying a deposit or partial down payment but encountering a funding crunch, repeatedly delaying the payment of the balance, leaving sellers unable to receive the money and afraid to resell the property; buyers delaying the payment of the balance with the excuse of "bank issues" after failing to obtain mortgage approval; and buyers defaulting on payments after receiving goods in business supply contracts, leaving sellers worried that the goods will depreciate and become difficult to dispose of after the contract is terminated. Sellers face practical choices: either continue waiting for payment, terminate the contract and resell the goods, or sue to demand payment and pursue breach of contract liability. The recovery speed and losses of the different approaches vary greatly, and a decision needs to be made as soon as possible based on facts and evidence.

II. Key points of contention

  • The establishment of the right to rescind the contract and whether it is valid depends on how the payment deadline is stipulated, how long the delay must be to constitute a fundamental breach of contract, and whether the court recognizes the deadline and method of giving notice. These factors directly determine whether the seller can rescind the contract.
  • The relationship between the deposit, the penalty for breach of contract, and compensation for losses: The penalty for breach of contract and the deposit cannot be used concurrently. According to Article 588 of the Civil Code, only one of them can be claimed. Which option is more advantageous needs to be determined based on the actual losses.
  • The settlement of the fulfilled part: If the house has been delivered and even transferred, the return of the possession and use fees and the compensation for the decoration additions after the termination of the contract are high-frequency disputes. Who should bear the loss of returning the delivered goods? These are all high-frequency disputes.

III. Professional analysis by Henglue Law Firm

Henglue Lawyers have observed three rules in handling breach of contract cases involving sales contracts. Firstly, the notice procedure is the dividing line for the success or failure of contract termination: oral notices are difficult to provide evidence for, while written notices should specify the contract basis, the amount payable, and a clear deadline. Moreover, they should be delivered in a traceable manner. If the buyer still fails to make the payment after the deadline, exercising the right of rescission will significantly increase the likelihood of winning the case. Secondly, the court typically sets a "reasonable deadline" of 15 to 30 days. However, in cases where the house has been transferred, the buyer has completed renovations and moved in, the court will more cautiously weigh the interests of both parties. The seller's request for contract termination may not be supported in such circumstances, and it may be more advantageous to claim continued payment plus late breach of contract penalties. Thirdly, the organization of evidence determines the amount of compensation: if the contract, online signing information, payment records, notice letters, and WeChat records form a complete chain of evidence, the claims for breach of contract penalties and occupancy and use fees are more likely to be fully supported; if the chain is broken, even if the contract termination is successful, the compensation amount will be significantly reduced. For related follow-up recovery and enforcement issues, please refer to the following content:Creditor-debtor relations and enforcement case servicesEvaluate them together.

IV. Practical Suggestions and Legal Basis

At the legal basis level: Article 562 of the Civil Code (effective January 1, 2021) stipulates consultation termination and agreed termination; Article 563 Paragraph 1 Items 3 and 4 stipulates urging termination and fundamental breach of contract termination; Article 566 stipulates return and compensation after termination, and its Paragraph 2 clearly states that if the contract is terminated due to breach of contract, the termination right holder may still request the breaching party to bear breach of contract liability; Article 579 allows the seller to request the buyer to pay the purchase price; Article 585 allows the court to adjust the excessive or insufficient liquidated damages; Article 588 clearly stipulates that the buyer may choose to apply either the deposit or the liquidated damages. At the practical steps level: First, check the payment deadline and default clauses stipulated in the contract; Second, send a written reminder letter and keep the delivery certificate; Third, calculate the economic benefits of terminating the contract and continuing to perform it, and apply for property preservation if necessary; Fourth, claim termination, return and liquidated damages when suing. Second-hand housing transactions should also pay attention to special procedures such as fund supervision, cancellation of online signing, and household registration transfer, which can be handled at the same time.Real estate sales and construction project servicesOperate under the guidance of the team.

5. Henglue Law Firm's Reminder

The seller should neither wait indefinitely nor rashly resell the house or goods without being reminded, otherwise it may constitute a breach of contract. Terminating the contract is not the goal; recovering the payment and limiting losses are the priorities. In most cases, the combination of "reminder + breach of contract penalty + preservation of evidence" can help recover the money faster than directly terminating the contract. After the contract is rescinded, the seller can still pursue breach of contract liability in accordance with Article 566 Paragraph 2 of the Civil Code, and the two actions are not conflicting. If the house has been transferred, and the buyer only defaults on the final payment, it is recommended to prioritize evaluating the payment claim and corresponding guarantee plans. If you are currently encountering a buyer who defaults on the payment of goods or housing, it is recommended to bring the contract and payment receipts for consultation as soon as possible.Beijing Henglu Law FirmCalculate the optimal route.

Q1: If the buyer fails to make payment on time, can the seller win the lawsuit to terminate the contract?

It depends on the urgency of the reminder procedure and the degree of the overdue payment. If the contract stipulates a clear payment deadline and the buyer still fails to pay within a reasonable period (commonly 15 to 30 days in practice) after being reminded in writing, the court generally supports the termination of the contract in accordance with Article 563 Paragraph 1 Item 3 of the Civil Code. If the buyer explicitly states that he will not pay or the overdue payment has rendered the purpose of the contract impossible to achieve, the contract may be terminated without a reminder in accordance with Item 4. If the house has been transferred and the buyer only owes part of the balance payment, the court may tend to order the buyer to make the payment rather than terminate the contract. If there are complete reminder letters and delivery certificates, the probability of the termination request being supported is significantly higher, which is also the most common technical difference between winning and losing in similar cases.

Q2: What evidence does the seller need to prepare in order to terminate the contract?

There are five main pieces of evidence: First, the contract itself, which includes provisions on payment deadlines, default clauses, and termination clauses; Second, evidence of the buyer's failure to pay on time, such as bank statements and receipt records, to prove that the agreed upon payments had not been received by the date of the lawsuit; Third, evidence of written reminders, including the full text of the reminder letter, mailing receipts and sign-in records, and verifiable WeChat or email reminders; Fourth, evidence of the plaintiff's compliance with the contract, such as certificates of timely delivery of the property or goods; Fifth, evidence of losses, including the price difference from reselling the property, losses from vacant housing, and proof of the depreciation of the goods. For second-hand housing cases, it is also necessary to prepare online signing and filing materials, as well as loan approval documents, to demonstrate the attribution of the reasons for the payment obstacles.

Q3: How much does it cost to litigate to terminate a sales contract?

There are mainly three costs: the case acceptance fee is calculated based on the amount of the litigation subject. For example, if the claimant demands to terminate the contract and claim 100,000 yuan, the acceptance fee will be about 13,800 yuan, and the losing party will bear it or share the responsibility according to the degree of fault after the claimant wins the case; the property preservation fee and guarantee fee depend on the amount of the preservation; the attorney's fee is usually charged per case or according to the proportion of the subject matter. For some commercial cases, it can be agreed that the defaulting party will bear it. If the claimant's claim for damages is too high and the other party requests a reduction, the court will generally determine it based on the actual losses in accordance with Article 585 of the Civil Code. Determining a reasonable amount when suing can not only reduce the overpaid acceptance fee, but also increase the likelihood of the claim being fully supported.

Q4: How long does it usually take from issuing a reminder to terminating the contract and getting the money back?

The self-reminder stage usually gives the buyer 15 to 30 days; for those resolved through negotiation, it takes several weeks to sign a resolution agreement and handle the cancellation of online registration and settlement of funds; for those entering litigation, the simple procedure is generally concluded within three months, and the ordinary procedure is generally concluded within six months, with an additional three months for the second instance. For cases involving the transfer and return of the house, the execution and registration time also need to be added. Overall, for cases with complete evidence, clear subject matter, and no preservation obstacles, the actual recovery of funds usually takes between half a year and a year from the issuance of the reminder; the earlier the procedure is initiated and the more complete the evidence is, the more controllable the cycle will be. Delaying the reminder will only prolong the entire process.

Q5: The buyer has been stalling, so what should the seller do first?

The first step is not to get angry or resell the goods, but to check the contract: confirm the agreed payment date, grace period, and overdue provisions, and determine whether the buyer's overdue payment constitutes a breach of contract. The second step is to send a written reminder letter as soon as possible after the payment deadline, stating the amount due, the deadline, and the consequences of overdue payment. Deliver the letter in a traceable manner and keep the proof, which is both a precondition for the right of rescission under Article 563 of the Civil Code and key evidence for future claims. The third step is to assess the necessity of preservation of evidence. If the buyer's assets are being lost, apply for a freeze on their accounts or properties in a timely manner. With these three pieces of evidence in hand, the seller will be in a proactive position whether they choose to rescind the contract or sue for payment in the future.

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