Common use of Liabilities of Breach of Contract Clause in Contracts

Liabilities of Breach of Contract. Liabilities of Party A for breach of this tenancy contract: 1. Fail to deliver possession of the leased property to the lessee as scheduled in contract. 2. Fail to provide the relevant equipment to lessee as scheduled in contract. Liabilities of Party B for breach of this tenancy contract: 1. To be responsible for the necessary repair or compensation for damage to the leased property due to the improper use or maintenance by the lessee. 2. To be responsible for the compensation of all losses arising from the unauthorized alterations of the leased property and equipment. 3. Fail to return the leased property according to schedule after terminating the contract. Apart from the rent payable, the lessee shall pay the contractual penalty. Penalty for every day of delay is 0.1% of the monthly rent with a maximum delay of 30 days. 4. Fail to pay the rent and expenses as scheduled. Unless paid on or before the due date, penalty shall be calculated according to the total outstanding amount owed by the lessee, with 0.1% of the total overdue amount per day as the overdue penalty. Calculating method: Total amount of the overdue penalty = total amount of rent and expense per month x No. of days overdue x 0.1% Party A has the right to take the following actions if the Party B has breached the contract according to the situation: 1. Impose a fine of two month's rent and expense as the penalty for breach of contract; 2. Order the lessee to move out and surrender the factory; 3. If Party B fails to pay the rent and expense for 2 months, Party A is entitled to take legal action against Party B and claims back the entire unpaid fees.