Key Points for Handling Housing Lease Contract Disputes
In a recent factory building lease dispute case handled by Lawyer Wang Xiaoshuang, the plaintiff leased a factory building to the defendant for a term of two years. During the lease period, the defendant failed to pay the rent on time (in violation of the contract terms), failed to properly deliver the premises upon termination, neglected to perform the necessary maintenance on the machinery specified in the contract, and failed to dispose of the hazardous waste generated by the factory building in accordance with the agreed terms. Therefore, the plaintiff filed a lawsuit with the court, requesting a judgment ordering the defendant to pay liquidated damages and bear the costs of machinery maintenance and hazardous waste disposal.
In response to the plaintiff’s claims, the defendant raised a defense, alleging that the plaintiff had not issued the corresponding invoices after receiving the rent.
The defendant (respondent) mainly refuted the claims raised by the plaintiff, including liquidated damages, machinery maintenance costs, and hazardous waste disposal costs, etc.
The defendant argued that the plaintiff failed to fulfill its obligation to issue invoices. Pursuant to the Civil Code of the People's Republic of China and relevant tax laws, the defendant was entitled to exercise the right of defense against non-performance of the contract and delay the payment of rent.
In addition, the defendant further alleged that it had fulfilled its obligations to pay rent and other fees during the performance of the contract, refuting the plaintiff's allegations regarding the failure to deliver the premises, liability for equipment maintenance costs, and hazardous waste disposal costs. The defendant claimed that it had not committed any breach of contract and should not bear any liability for breach of contract. Based on the foregoing, the defendant asserted that the plaintiff had also breached the contract and should assume corresponding liability.
In response to this situation, Lawyer Wang Xiaoshuang put forward professional legal opinions. In the practice of contract performance, delivering the premises and paying the rent are the primary obligations of both parties to the contract. She pointed out that there is no reciprocal legal relationship between issuing invoices and paying rent. Therefore, the lessee shall not exercise the right of concurrent performance defense solely on the ground that the lessor has not issued invoices so as to refuse to pay the rent.
The lawyer further elaborated that if there is no explicit provision in the contract stating "issue invoices first, then make payment", issuing invoices shall not be a condition precedent for paying the rent. Even if the obligation of issuing invoices is stipulated in the contract, in the absence of a clear agreement on the order of performance, such obligation shall still be of an incidental nature, and the lessee shall still pay the corresponding amount in such cases.
However, if the contract explicitly stipulates the sequence of "issuing invoices first, then making payment", the situation will be slightly different. In such cases, although the paying party is not liable for breach of contract, it is still subject to the principle of equivalent defense and cannot exercise the right of first-performance defense. Therefore, once the lessor has fulfilled its primary obligations, the lessee shall still pay the corresponding amount.
Finally, Lawyer Wang Xiaoshuang suggested that both parties to the contract should clearly specify in the contract terms that if the lessor fails to issue valid invoices in accordance with the agreed requirements, the lessee shall have the right to delay the payment of rent until receiving invoices of equivalent value, and shall not be liable for breach of contract during this period. Meanwhile, the lessor should clearly state that even if the invoices have been issued but the payment has not been actually received, the amount actually credited to the receiving account shall prevail. If the lessee fails to pay the full amount within the specified period, liquidated damages for delayed payment shall be calculated on a daily basis based on the unpaid amount until the full payment is made.
Lawyer’s summary of housing lease disputes
Lawyer Wang Xiaoshuang also summarized common issues in general housing lease disputes and provided corresponding suggestions to help tenants avoid disputes to the greatest extent possible.
As a tenant, it is crucial to understand and take appropriate preventive measures before signing a housing lease contract. Below are key suggestions summarized based on the housing lease cases we have handled, designed to help you avoid potential disputes during the rental process.
Carefully Review the lease contract
Thoroughly read all clauses before signing, especially those regarding rent, security deposit, maintenance responsibilities, pet policy, and early termination of the contract. Consult the landlord or professionals promptly if you have any unclear points.
Clarify rent and secruity deposit clauses
Ensure the contract clearly specifies the rent amount, payment method, payment deadline, as well as the security deposit amount, custody method, and refund conditions.
Comfirm property maintenance and unkeep responsibilities
Verify the allocation of responsibilities for property maintenance and upkeep in the contract, and understand which repairs are the landlord’s responsibility and which are your own during the lease term.
Understand early lease termination clauses
Familiarize yourself with the conditions and potential financial consequences of early lease termination, such as liquidated damages or liability for rent for the remaining lease term.
Document the property's current conditions
Conduct a comprehensive inspection of the property’s condition before moving in and take photo records, especially of existing damages or defects. This helps prove that these issues were not caused by you when checking out.
Communicate timely and keep records
If any problems arise during the lease term, communicate with the landlord promptly and retain written records as much as possible, such as emails and text messages.
Understanding and complying with the terms of the lease contract is the first step to avoiding disputes. During the rental process, maintaining good communication with the landlord and resolving issues promptly can significantly reduce the risk of disputes.
If you encounter any legal problems during the rental process, our legal team is ready to provide you with professional legal consultation and assistance at any time.
Wang XiaoshuangFull-time LawyerShanghai Xinyi Law Firm
Practice Areas: Intellectual Property, Civil and Commercial Law
Holds a Master of Laws degree from East China University of Political Science and Law (ECUPL), with a solid foundation in legal theory. Successfully represented Jianzhijia Pharmaceutical Chain Group Co., Ltd. in the case of infringement of the well-known trademark "Jianzhijia" against Zhenjiang Jianbeijia Pharmaceutical Co., Ltd.
Tel: 18317133197 (WeChat ID: Same as phone number)
Email：wangxiaoshuang@xinyilawfirm.com
