Analysis Of The Legal Issues Of Commercial Housing Subscription Book

Commercial housing subscription book was introduced to China from real estate market in Hong Kong. It is called temporary contract for the sale according to Laws of Hong Kong. Presently, there is no legislation of offers in China. However, in order to quickly grasp the customer's purchase intention and the market demand and accelerate the sales of commercial housing under market economy conditions, the developer often signs a subscription book with the customer before signing a formal contract for the sale of commercial housing and home and this approach has been widely applied into practice. because this practice has not yet formed a clear norms to follow, in practice, a large number of disputes over offers exist, it is difficult to form a unified understanding, such as the legal nature of offers to subscribe for the book,deposit guarantee qualitative and conditions of its application, what kind of the legal responsibility they should assume when the parties` breach of a contractual obligation of the subscription book. This paper shows thoughts about the above problems.The body of this paper is divided into five parts in addition to the introduction and conclusions.The first part sums up the issue in the judicial practice from a typical case; the second part to the fifth of it studies these issues one by one, in which the second part analyzes the legal nature of the commercial housing subscription book, the third analyzes the nature of the deposit in the commercial housing subscription book, the fourth studies the application conditions to subscribe for the deposit of the commercial housing subscription book, the fifth researches whether other responsibility of breach of contract a party assumes in addition to the penalties applicable to the deposit when it violates the subscription book.This paper argues that the subscription book is an independent commercial housing contract, the nature is a preengaged contract before the signing of a formal contract for the sale of commercial housing, the subscription book and commercial housing contract are the relationship of pre-contract and real contract. The real contract has not established though the reservation is signed up, and it just means an appointment and duty to sign the real contract,Therefore, a party can only ask the other party to sign the contract but not request each other to perform the contract in accordance with this reservation. the nature of deposit in the commercial housing subscription book is breach deposit. Subscription deposit does not guarantee the signing of a formal contract for the sale of commercial housing, but to guarantee both parties to fulfill obligations of good faith negotiations, as long as both parties do utmost good faith obligation of consultations, negotiations, each party can not apply to deposit penalties even without the signing of the formal commercial housing contract for the sale, but the deposit penalties is applicable if the parties fail to fulfill the obligation of offers fundamental breach or any other circumstances,. if the interests of the injured party is a larger case, the application of deposit penalty can not make the interests of one party compensated after obtaining the deposit, from the protection of the interests of the non-defaulting party and to avoid defaulting party obtaining benefits from its breach of contract behavior, other liability of the party in breach should be investigated, such as damages of non-defaulting party. When damage to the parties amounts in excess of the penalties applicable to the deposit, claim for damages after the counterparty assuming the responsibility of the deposit should be supported, the amount of compensation for other losses if fullfilled while penalty deposit is applicable. The amount of damages to the party does not exceed the amount of penalties applicable to the deposit, deposit penalty should be applied and other damages do not to need to compensate.