How to Pay the Penalty for Breach of Contract When Backing Out of Selling a Used Car?
2 Answers
How to compensate for the penalty when backing out of buying a used car depends on the situation. 1. If the contract stipulates how much compensation should be paid in case of breach by one party, then the compensation should be made according to the contract. 2. If there is no agreement between the parties, or if no contract was signed at all, the 1000 yuan is only considered a deposit, and returning the deposit to the other party is sufficient. 3. Article 107 of the Contract Law states that if one party fails to perform its contractual obligations or its performance does not meet the agreed terms, it shall bear the liability for breach of contract, such as continuing to perform, taking remedial measures, or compensating for losses.
I've encountered a similar situation where I regretted selling my used car after signing the contract. The penalty for breach of contract mainly depends on the terms agreed upon by both parties in the contract. The contract usually stipulates a penalty ratio, such as 10% to 20% of the car's price, and you just need to compensate accordingly. If there's no such agreement, you'll have to negotiate compensation for the buyer's actual losses, such as additional expenses for viewing cars or time costs incurred due to your change of mind. Legally, the buyer is entitled to reasonable compensation, but it's best not to confront them head-on. Instead, proactively discuss with the buyer to reduce the amount, avoiding the hassle of going to court. In reality, I ended up paying 15% as compensation, which was a lesson learned. From then on, I made sure to think carefully before signing any car sale contracts.
