What Is The Liability For Breach Of Contract In The Loan Contract?

A loan contract is a contract whereby the borrower borrows money from the lender and returns the loan and pays interest at maturity.

The loan contract will take on different legal characteristics because the main body of the loan is the financial institution or the natural person.

The loan contract is in principle a paid contract or a free contract.

The loan contract is generally a novice contract, but the loan contract between natural persons is a practice contract.

The loan contract is generally bilateral contract + but the loan contract between natural persons is in principle a single business contract.

The loan contract is a mandatory contract, but the loan contract between natural persons is a non contract.

The loan contract is made by the borrower and the borrower on the basis of the principle of voluntariness. No unit or individual can force the lender to borrow money or force others to lend.

In the conclusion of a financial loan contract, there are two special requirements to be followed in addition to the requirements of the contract: the borrower should generally provide a guarantee, and the borrower has the obligation of truthfully declaring it.

The rights and obligations of the two parties in a two party paid loan contract is a matter of concern. Especially when the borrower violates the contract, how to determine the rights and obligations of both parties so as to achieve fairness and rationality is a matter of consideration in practice.

Short term loans refer to loans borrowed from banks or other financial institutions in order to meet the needs of daily production and operation, with a duration of less than 1 years (including 1 years).

Loans from enterprises to banks or other financial institutions, such as borrowers with a duration of less than 1 years (including 1 years), are accounted for through short-term loans.

Loans from enterprises to banks or other financial institutions and other borrowers with a term of over 1 years shall be accounted for in the term "long-term loan".

Short term loans should be subject to

The borrower and currency shall be accounted for in detail.

The term "short term loan" is a liability category. Its loan chip registration enterprise acquires the principal amount of the loan, and the borrower registers the principal amount of the short-term loan, and the final balance is in the lender, indicating the amount of the loan principal that the enterprise has not yet paid.

In the loan contract, the default of the borrower is the main cause of the dispute.

(1) the majority of the borrowers are not accepted according to the agreement.

If the borrower fails to accept the loan according to the contract, he shall compensate the lender for the losses caused thereby.

Since the loss of the lender is actually a loss of interest, the 201st clause and second paragraph of the contract law stipulates that the borrower shall not pay the loan according to the agreed date and amount, and the interest shall be paid according to the agreed date and amount.

(2) not using loans for agreed purposes.

It is a breach of contract for a borrower not to use the loan according to the agreed purpose, which will damage the interests of the lender.

For example, in some financial loan contracts, some loans are issued according to the state's macroeconomic regulation and control policies, credit policies and industrial policies. If borrowers do not borrow money in accordance with the agreed terms of borrowing, the state's macroeconomic regulation and control will become a mere formality, which will ultimately affect economic security and the implementation of national economic policies. At the same time, it may cause some industrial investment to overheat and affect financial operation.

Therefore, the law clearly stipulates that a borrower who fails to use the loan to make a loan according to the contract shall lose it.

。

At the same time, the lender can stop lending, recover loans or terminate the contract in advance, which reflects the mandatory nature of loan contracts different from natural persons.

(3) no agreed time limit.

。

When the loan contract expressly stipulate the time limit for repayment, there are two situations for the borrower to repay the loan at the end of the contract: (1) delay repayment, that is, the borrower fails to repay the loan at the expiration of the agreed time limit.

If the borrower fails to repay the loan, it will affect the turnover of the lender and damage the interests of the lender. Therefore, the borrower who has delayed repayment should be liable for breach of contract.

In addition, if the borrower fails to repay the loan due to maturity, the lender shall have the right to require the guarantor to repay the principal and interest of the loan or to pay priority to the guaranty.

(2) early repayment, that is, the borrower will repay the loan before the time limit for the repayment of the loan is agreed.

If the parties have agreed on the advance repayment, they will perform according to the agreement, and the parties do not stipulate the advance repayment clause in the contract. If the early repayment does not damage the interests of the parties, it can be repaid ahead of time without the consent of the lender. The interest is calculated according to the actual borrowing period. If the early repayment damages the interests of the lender, the lender has the right to refuse the advance repayment requirement of the borrower. Generally speaking, the financial institution will refuse to accept the loan in advance, because this means the loss of the expected interest.

(4) no interest is paid as agreed.

The loan contract is mostly a paid contract, and the borrower has the obligation to pay interest. If the borrower fails to pay the interest according to the agreement, it constitutes a breach of contract, and the borrower shall be liable for breach of contract.

The responsibility for breach of contract is mainly caused by refusing to repay interest.

As for whether the interest during the overdue period can be included in the calculation of compound interest, there is no explicit provision in our law at present. So long as we do not violate the law, the interest on overdue payment should be included in the principal and interest.

However, borrowing between citizens and the borrower calculating the compound interest of the principal of the interest shall not be protected by law, mainly due to the balance of rights and obligations.

If the creditor compounded the interest of the principal of the interest, and the interest rate will exceed four times the loan interest rate of the same period of the bank, the interest of the excess part should not be protected.