Traditional Culture Encyclopedia - Hotel franchise - Compensation for breach of contract for hotel reservations
Compensation for breach of contract for hotel reservations
According to current relevant regulations, if the hotel breaches the hotel reservation contract, it will need to pay double the relevant deposit. and refund the service fee. If it causes related losses to the consumer, it is necessary to compensate the consumer 30% of the actual loss. Otherwise, the consumer can directly sue the court.
How much is the compensation for breaking a hotel booking contract? If you can claim liquidated damages, the breaching party must return double the deposit, and the hotel should refund the service fee. If it causes losses to consumers, it should bear the liability for compensation; "Consumers" Article 52 of the Law on the Protection of Rights and Interests: If an operator provides goods or services that cause damage to consumer property, he shall be responsible for repairing, redoing, replacing, returning goods, replenishing the quantity of goods, refunding payment and service fees, or Compensation for losses and other civil liabilities. According to Article 577 of the Civil Code, if a party fails to perform its contractual obligations or performs its contractual obligations inconsistently with the agreement, it shall bear liability for breach of contract such as continuing to perform, taking remedial measures, or compensating for losses. Article 578 If one party expressly states or shows by its own behavior that it will not perform its contractual obligations, the other party may require it to bear liability for breach of contract before the expiration of the performance period. According to the Civil Code: Paragraph 1 of Article 585 of the Civil Code stipulates: The parties may agree that when one party breaches the contract, it shall pay a certain amount of liquidated damages to the other party based on the circumstances of the breach, or the amount of compensation for losses arising from the breach of contract. Calculation method. Therefore, liquidated damages have punitive characteristics and do not presuppose that the non-breaching party suffers losses. Generally speaking, the upper limit of liquidated damages in a contract is no more than 30% of the actual loss. However, if it is too high or too low, you can ask the court to reduce or increase it. Paragraph 2 of Article 585 of the Civil Code stipulates: If the agreed liquidated damages are lower than the losses caused, the parties may request the court to increase them; if the agreed liquidated damages are excessively higher than the losses caused, the parties may request the court to appropriately reduce them . However, liquidated damages are a pre-estimate of the losses that may be caused by one party's breach of contract when the parties make the contract, and they cannot be completely consistent with the actual losses of the non-breaching party after the breach of contract; therefore, it can be left to the discretion of the judge. The law stipulates that liquidated damages are predetermined. In addition to exerting psychological pressure on the parties, it also avoids the trouble of calculating losses after breach of contract and the trouble of parties proving the size of losses, allowing parties to quickly determine the specific responsibilities they should bear. Therefore, if the party needs the court to increase the amount of the breach of contract, or if the liquidated damages are excessively higher than the loss, the party must bear the burden of proving the size of the loss. When booking a hotel contract, generally speaking, consumers pay a relevant deposit. If the consumer breaches the contract, the deposit can be used to compensate. However, if the hotel breaches the contract, the consumer can ask the hotel to make compensation. The deposit will be doubled, and if the consumer suffers greater losses, an additional 30% can be required for compensation.
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