Reach On Article 111 Reduction Of Contract Price Or Remuneration In Contract Law Understanding And Application

Article 111 of the contract law stipulates the solution path of the parties when the quality does not conform to the contract and the remedies for breach of contract that the parties whose interests are damaged can claim.There are different opinions on the nature of the reduction of price or reward mentioned in the articles,and there are disputes on its scope of application and way of exercise.The applicable rules of the reduction in the judicial judgment are different from each other.As for the price reduction,if it stands on the position of the observant party whose interests are damaged,the price reduction should be regarded as the remedy for breach of contract;if it stands on the position of the breaching party,the price reduction is one of the remedies for breach of contract stipulated in the contract law.In essence,price reduction is the right to change the contract,whether it is the remedy for breach of contract or the remedial measure.It is the right that the party whose interests are damaged has to request the debtor to change the content and price of the contract performance when the debtor’s contract performance is inconsistent.Therefore,the subject of price reduction should be the party who has the obligation to pay money.Article 110 of the contract law of our country stipulates the exception that the compulsory performance is not applicable.The party who has the obligation to pay money chooses to apply the price reduction,which will not damage the interests of the seller and lead to the imbalance of interests.In the objective aspect,the request for price reduction relief requires that the performance quality does not conform to the agreement,and in the subjective aspect,it requires that the performance subject has no intention,otherwise it may constitute fraud,and the party whose interests are damaged may claim to cancel the contract.Article 111 of the contract law stipulates that the injured party can "reasonably" choose "remedies.There is no priority in the application of several remedies.When applying for relief at reduced price,the injured party does not take the remedy performance and the exhaustion of remedial measures as the premise.There is a concurrence relationship among several remedies.When choosing a remedy for breach of contract fails to achieve the purpose of the contract,the parties can request to change the remedy.When the parties have disputes on the remedy,they can ask the court to determine whether it is reasonable or not.The legal basis of damages is that the law forces the breaching party to compensate the non breaching party for the loss caused by its own behavior,which is essentially different from the legal basis of price reduction.The price reduction shall adopt the calculation method of "difference type" rather than "proportion type",that is,the difference between the price agreed in the contract and the market price of the subject matter that does not meet the agreed quality requirements.At the same time,the time when the parties enter into the contract shall be taken as the applicable time for calculating the amount of the reduction.