Legal Research On Commercial Housing Subscription Book

There are two sales models in our present commercial housing purchase whichare sales of complete houses and houses under construction. Because there arefactual or legal obstacles in sales of houses under construction, both parties of thehousing purchase can not conclude a formal commercial housing sales contractimmediately, and parties in deal based on self-interest considerations not only needto grasp the trading opportunities but also need to reduce the transaction cost in orderto avoid possible transaction risk. Both parties always use letters of subscription,letter of intention, order book, etc. to constraint behaviors of both parties in thecontracting consultation stage in consideration of trying their best to reach aconsensus finally. In practice, we collectively call these documents“subscriptionbook”.According to the general point of view，commercial housing subscription bookis the booking contract with independent legal effect compared with this contract.Our current law dosen’t contain appointment, and no relevant stipulations in judicialexplanations, which has led to controversies of what’s the legal nature ofsubscription book, and how to distinguish from agreements without legal effect, etc.When deciding legal effect of the commercial housing subscription book. Ifcommercial housing subscription book is separate appointment contract, how can wedecide its certainty and binding force, and what kind of rights and obligationsrelations will resulted therefrom, and what kind and scope of legal responsibility willoccur when one party tear up the subscription book. There are different opinions forthese issues and different verdicts. Still, there isn’t an unified format and standardsfor the content and forms of commercial housing subscription book, which hasadded difficulty to identify the commercial housing subscription book. This paper intends to seek unified specification and scale from the perspective of judicialpractice.This paper discussed legal nature of subscription book from the perspectivethereof, and defines the said book as independent appointment contract with specificconditions as required by law. Violation of substantial clause of the subscriptionbook would be recognized as breach of contract which should be reliable therefore.Violation of content specified therein would be recognized as behavior of contractingnegligence which should assume the contracting fault liability therefrom. At the endof this paper, the author discussed the way the parties can request the courts torelieve according to subscribe book if we final to conclude and sign the commercialhousing sales contract.