【 Reason for recommendation 】

This case is a typical case involving the performance and termination of village collective land lease contracts. The lessor claims to confirm the termination of the lease agreement signed with the lessee and for the lessee to return the land, but the lessee claims that the lessor has breached the contract by failing to handle the housing construction planning procedures as agreed, resulting in the inability to use the land. The lessor refuses to return the land and claims to continue to perform the contract after the expiration of the contract period.

After accepting the client's commission, our lawyer conducted a specific analysis of the case and believed that the lease contract involved did not stipulate that the lessor should handle the planning procedures for the lessee, and the lessor did not have any breach of contract. There is no legal basis for the lessee to unilaterally claim to continue performance upon the expiration of the lease term as stipulated in the contract. In the end, the court basically adopted the opinions of our lawyers and obtained a satisfactory judgment in favor of the client.


[Client] (Plaintiff in the original trial, Defendant in the counterclaim, Appellee): Economic Cooperative Society of a Village in Chaoyang District, Beijing (hereinafter referred to as "OECD")

[Counterparty] (Defendant in the original trial, Plaintiff in the counterclaim, Appellant): A trading company in Beijing (hereinafter referred to as the "Trading Company")

[Client's lawsuit request] 1. Confirm the expiration and termination of the lease agreement signed by both parties and the return of the land by the defendant; 2. The defendant shall pay the overdue rent and corresponding late fees; 3. The defendant shall pay the occupancy fee from the termination of the contract until the actual return of the land.

[Counterclaim Request by the Other Party] 1. Continue to perform the Lease Agreement; 2. Confirm that the lease term of the lease agreement will be calculated from the completion of the planning procedures for the construction plan by the Economic Cooperation Society to the relevant departments, and the rent paid will be used as the rent for the corresponding years after the calculation of the lease term.


【 Basic Case 】

In 2005, the Economic Cooperation Society signed a lease agreement with a trading company, which stipulated that the lease involved collective land and the lease period was from September 2005 to September 2020. The Economic Cooperation Society assists the trading company in coordinating local rural public relations departments, issuing village level certificates related to the business license of the trading company, and granting the trading company independent and autonomous use rights within the leased area. The contract also stipulates other rights and obligations of both parties, such as rent.

There is no dispute between the two parties regarding the amount of rent already paid by the trading company. The trading company claims to have submitted the construction plan and drawings for the newly built house to the OECD, and requires them to fulfill their contractual obligations and complete the planning procedures. The trading company claims that due to the failure to complete the planning procedures for the construction of a new house, it is unable to use the land involved in the case for management, and therefore should not pay rent.

[Opinion of our lawyer's representative]

1. The lease agreement involved in the case did not stipulate that OECD had an obligation to handle the planning procedures for the new building of the commercial company. OECD has never received the construction plan or drawings submitted by the commercial company, and the latter has not claimed to handle the relevant planning procedures from us. The trading company did not provide evidence to support its claim of the aforementioned facts, and there is no breach of contract by the OECD.

2. According to the Lease Agreement, the lease period of the land involved in the case expires in September 2020. The Economic Cooperation Society terminates the contract and claims to recover the collective land and pay the overdue rent to the commercial company, which is an exercise of the lessor's legal rights. The commercial company's claim to continue to perform the contract has no factual or legal basis.

3. After the expiration of the land lease period, if the commercial company still occupies the land and refuses to vacate and return it, they should pay us the land occupation fee.

Summary of the Judgment

1. Firstly, the trading company did not provide corresponding evidence to support its claim that it had provided construction drawings to the OECD but refused to cooperate with social security; Secondly, the Lease Agreement does not stipulate that the Economic Cooperation Society shall be responsible for handling the relevant planning and approval procedures. The assistance obligation stated in the contract is an ancillary obligation of the Economic Cooperation Society to deliver the leased land, and the performance of the ancillary obligation depends on the fulfillment of the main obligation of the trading company itself. Therefore, the trading company claims that there is a breach of contract by the Economic Cooperation Society, and both parties should continue to fulfill the Lease Agreement, but the court does not accept it.   

2. The lease agreement between the two parties shall terminate from the date of expiration of the lease term. If the commercial company fails to pay the rent as agreed in the contract and fails to vacate and return the land involved in the case in a timely manner after the lease term expires and actually occupies it until now, it shall pay the rent and occupation fee to the Economic Cooperation Society. However, considering that the commercial company was unable to actually use the land for operation during the lease period due to the lack of obtaining building planning procedures, the first instance court, based on the actual situation and the original contract agreement, determined the rent and occupancy fees that the commercial company should pay and rejected the lawsuit request of the Economic Cooperation Society regarding late fees, which is not inappropriate.

【 Judgment Result 】

1、 Confirm the expiration and termination of the lease agreement signed between the Economic Cooperation Society and the trading company. The trading company shall vacate the land and houses under the lease agreement and return them to the Economic Cooperation Society within 15 days from the effective date of the judgment;

2、 The trading company shall pay the overdue rent and occupancy fees to the OECD from the termination of the contract until the actual return of the land.