CHINA Law and Practice Contributed by: Nancy Zhang, Xiaoying Tian and Liangqian Ying, JunHe LLP
requirements on the use of the leased prem - ises. The following circumstances are often seen in a lease as causes for termination by the landlord: • failure by the tenant to pay the rent, management fee, deposit or other amounts due, and the out - standing amounts remain unpaid for a reasonable period after receipt of notice from the landlord; • insolvency of the tenant; • unauthorised suspension or close of business operations; and/or • damage to the main structure or unauthorised fitting-out or improvement of the leased premises by the tenant. The PRC laws also give the landlord the right to termi - nate the lease should the tenant sublease the leased premises without the landlord’s consent. 6.20 Registration Requirements A lease agreement shall, within 30 days of its execu - tion, be filed with the competent real estate authority of the city where the real estate is located, otherwise the parties to the lease will be ordered to comply. Should the parties fail to comply within the prescribed time period, the parties shall be subject to a fine of CNY1,000 (in the case of an individual) or CNY1,000 to CNY10,000 (in the case of a legal entity). The lease of real estate is not usually reflected in the Land Record. 6.21 Forced Eviction If the lease is terminated as a result of the tenant’s default, the tenant must reinstate and return the leased premises in a timely manner. Should the tenant fail to do so, after the lease has been duly terminated, the landlord may cut off the water or electricity supply to force the eviction of the tenant. The landlord may file a lawsuit to the court with com - petent jurisdiction for its confirmation that the lease is duly terminated. If the tenant still occupies the leased premises after the court has found that the lease has been terminated, the landlord may apply for an enforced eviction based on a valid judgment. In prac -
tice, the period required for a court to make a judg - ment and complete the enforcement procedure varies in different localities but is usually longer than a year. 6.22 Termination by a Third Party A third party who is not a party to the lease cannot generally terminate the lease because it is not a party to the lease. However, under certain circumstances, third parties may make it impossible for the lease to be performed or fulfilled, resulting in early termination of the lease. 6.23 Remedies/Damages for Breach In addition to the collection from the tenant of out - standing rent and tenant eviction, the parties may agree, in the lease, upon the amount of liquidated damages in the event of a tenant breach and termi - nation of a lease. However, if the amount of the liq - uidated damages agreed on by the parties exceeds 130% of the losses sustained, the party concerned may apply to the court or arbitration tribunal for an appropriate reduction in liquidated damages. Remain - ing rent is not generally supported unless it falls within the cap of 130% of the total losses incurred by the landlord, same as the security deposits, whether in the form of cash or bank guarantee, held by the landlord. 7. Construction 7.1 Common Structures Used to Price Construction Projects The most common pricing structures for construction include: • fixed quota pricing ( 工程定额计价 ); • bill of quantities pricing ( 工程量清单计价 ); • fixed lump-sum price ( 固定总价 ); • fixed unit price ( 固定单价 ); • cost plus fee ( 成本加酬金 ); and • adjustable price ( 可调价 ). These are not mutually exclusive and sometimes, mul - tiple pricing structures might be included in the same contract.
152 CHAMBERS.COM
Powered by FlippingBook