How to apply for compensation for Tongcheng Hotel's breach of contract

Tongcheng Hotel applies for compensation for breach of contract as follows:

1, agreed compensation: refers to that when the parties to a contract conclude a contract, they agree in advance on the calculation method of compensation arising from one party's breach of contract or pay a certain amount of money to the other party. Because it is difficult to determine the scope of loss when concluding a contract, the compensation calculation method agreed by both parties to the contract is not a fixed amount of compensation. However, the agreed compensation generally exceeds 30% of the actual loss and is not supported;

2. Legal compensation: When one party breaches the contract and causes losses to the other party, the compensation amount shall be calculated according to the method stipulated by law. Including other laws and regulations on compensation for breach of contract. In the case that the parties have not agreed on compensation or liquidated damages in advance, legal compensation is generally adopted. In the absence of compensation agreed by the parties, some laws also stipulate the compensation limit, mainly the maximum compensation limit for the carrier in the transportation contract. If this limit is exceeded, the breaching party shall not be liable for compensation.

Calculation formula: The amount of compensation for losses of the breaching party is limited by the actual losses, available benefits and foreseeable rules of losses.

The hotel default treatment method is as follows:

1, negotiation, it is the best way for both parties to settle their disputes through mutual consultation on the basis of friendship.

2. Mediation: If both parties to the contract can't reach an agreement through negotiation, they can ask the relevant institutions for mediation. For example, if one or both parties are state-owned enterprises, they can seek mediation from higher authorities. Higher authorities should clearly distinguish right from wrong and mediate on the basis of equality, rather than administrative intervention.

To sum up, if the hotel breaches the contract, both parties shall bear the liability for breach of contract according to the agreement. If there is no agreement, compensation shall be made according to the actual situation that causes losses to the other party. Hotel compensation usually includes payment of liquidated damages, compensation for losses and continued performance. If the agreed liquidated damages are lower than the losses caused, the people's court or arbitration institution may increase the liquidated damages at the request of the parties; If the agreed liquidated damages are excessively higher than the losses caused, the people's court or arbitration institution may appropriately reduce them at the request of the parties. If the parties concerned pay liquidated damages for delayed performance, the breaching party shall also perform the debt after paying the liquidated damages.

Legal basis:

Article 582 of the Civil Code of People's Republic of China (PRC)

If the performance is not in conformity with the agreement, it shall bear the liability for breach of contract in accordance with the agreement of the parties. If the liability for breach of contract is not stipulated or clearly stipulated and cannot be determined according to the provisions of Article 510 of this Law, the injured party may reasonably choose to require the other party to bear the liability for breach of contract such as repair, rework, replacement, return, price reduction or remuneration according to the nature of the subject matter and the size of the loss.

Article 583

If one party fails to perform its contractual obligations or fails to comply with the contract, and after performing its obligations or taking remedial measures, the other party still suffers other losses, it shall compensate for the losses.