The Legal Problem Research On The Subscription For Commercial Buildings

Strictly speaking, the subscription for commercial buildings, is not a legal concept or a legal term which has been defined clearly. With development of real estate market in China, especially the wide acceptance of the presellment of commercial buildings, the subscription for commercial buildings becomes used progressively. Its legal nature, validity and rules of liability for contract–breaking have not been set out by the existing laws and the administrative regulations. This paper treats the subscription for commercial buildings as a kind of new legal phenomenon, and analyses its legal nature with the existing legal framework. The full paper is consists of three parts ,as the preface, the main body and the conclusion.The main body is divided into six chapters.The first chapter begins with a real case, and then introduces the concept of the subscription for commercial buildings. It firstly explores its forms and characteristic, then discusses its legal nature. Generally speaking, the subscription for commercial buildings is the precontract of the presellment contract (or the contracts for sales) for commercial buildings. However, on the particularly condition, it may also be treated as the original contract of the presellment contract.The second chapter further discusses the concept of the precontract. It, by borrowing the legislation experience of foreign countries for reference, discusses the conditions for entering into a precontract and for a valid subscription for commercial buildings.The third chapter argues that the subscription for commercial buildings is a preliminary agreement with open terms, by analysing the binding force to the precontract parties concerned. Furthermore, this chapter discusses the duties of both parties in the subscription for commercial buildings, and the related problems frequently met in judicial practices.The forth chapter comments on the legal liabilities for breaking the subscription for commercial buildings. By distinguishing the responsibility for the fault in negotiating with that for the breach of contract, the author argues that it is more advantageous to both parties if any party who breaks the subscription for commercial buildings should take the responsibility for the breach of contract rather than that for fault in negotiating. And this arrangement will give more respects toward the parties'contractual freedom.The fifth chapter discusses the methods of remedies for breaking the subscription for commercial buildings. Under the existing framework of the law of contract, they include deposit punishment rule, compensate for losses, compulsory performance, breach of contract damages.The sixth chapter suggests that existing Chinese legislation shall endorse the validities of the precontract. It will enrich the connotation of contract and improve the system of contract law in China. At last, the author proposes to develop the regulation over precontract in the framework of contract law in China.