Dispute over housing lease contract between a catering company, Li, Zhang and a limited company in Beijing

(2024) Jing03 Minzhong * * *

【 Reason for recommendation 】

This case is a typical example of the performance and termination of a rental contract, as well as issues related to rent payment. The lessor claims the termination of the lease contract and the lessee shall pay the rent, heating fees, property management fees and other related expenses. The lessee requests the lessor to compensate for the losses caused by the lessor's lock replacement, including equipment and decoration losses.

After accepting the client's commission, our lawyer conducted a specific analysis of the case and believed that both Zhang and Li should bear the losses of the lessor, because Li is the sole shareholder of a catering company in Beijing and has not provided evidence to prove that his personal property is independent of the company's property. Therefore, he should bear joint and several liability for the company's debts. Zhang and Li were originally husband and wife. Although they had divorced before the signing of the contract involved in the case, it was found through the court's investigation that the expenses for renting and renovating the involved property by a catering company in Beijing, except for the first installment, were all paid by Zhang's personal account; And Zhang, in the name of his marital relationship with Li, communicated and exchanged with a Beijing limited company regarding the performance and termination of the contract in question, and provided his own property as collateral for the deferred payment debt of the contract in question. Therefore, the Beijing limited company's request for Zhang to jointly assume responsibility has factual basis and is supported by the court.


[Client] (Plaintiff in the original trial, Defendant in the counterclaim, Appellee): Beijing Limited Company

[Counterparty] (Defendant in the original trial, Plaintiff in the counterclaim, Appellant): A catering company in Beijing, Zhang, Li

[Client's lawsuit request] 1. Confirm that the "Asset Lease Agreement" and "Supplementary Agreement" were terminated on February 18, 2022; 2. A catering company in Beijing, along with Li and Zhang, pays rent, occupancy and usage fees, property management fees, and heating fees to our company; 3. A catering company in Beijing, along with Li and Zhang, paid liquidated damages for overdue payments. 4. A catering company in Beijing, along with Li and Zhang, paid rent during the rent free period; 5. A catering company in Beijing, along with Li and Zhang, shall compensate for early termination of the contract as liquidated damages; 6. A catering company in Beijing, along with Li and Zhang, shall compensate our company for the delay in processing the business registration and relocation penalty; 7. Compensation for preservation guarantee fees; 8. Compensate for the lawyer's fees of a limited company in Beijing.

[Counterclaim Request] 1. Return the rental deposit or deduct the rent; 2. Refund a portion of the selling price for tableware; 3. Compensation for economic losses caused by lock replacement; 4. Compensate for the loss of equipment detained due to lock replacement; 5. Compensation for decoration losses.


【 Basic Case 】


The case of a housing lease contract dispute between a catering company, Li, Zhang and a limited company in Beijing has been tried by the people's court and has now been concluded. The specific case is as follows:

A limited company in Beijing signed a "Collective Asset Lease Contract" (hereinafter referred to as the "Contract") with Li, which stipulated that the leased property is located in a house in Chaoyang District, Beijing. The house in question is a simple decoration and the lease purpose is catering, with a total lease term of five years; A certain limited company in Beijing provides a rent free period and rent free amount. When the lease term expires or the contract is terminated, the company has the right to reclaim the property, and any immovable or non removable fixed facilities formed during the decoration period belong to the company. Afterwards, a limited company in Beijing signed a Supplementary Agreement (hereinafter referred to as Supplementary Agreement 1) with Li, agreeing to increase the leased area and adjust the rent. A limited company in Beijing signed a "Collective Asset Lease Contract" (hereinafter referred to as the "Contract") with Li, which stipulated that the leased property is located in a house in Chaoyang District, Beijing. The house in question is a simple decoration and the lease purpose is catering, with a total lease term of five years; A certain limited company in Beijing provides a rent free period and rent free amount. When the lease term expires or the contract is terminated, the company has the right to reclaim the property, and any immovable or non removable fixed facilities formed during the decoration period belong to the company. Afterwards, a limited company in Beijing signed a Supplementary Agreement (hereinafter referred to as Supplementary Agreement 1) with Li, agreeing to increase the leased area and adjust the rent.

On March 8, 2019, a catering company was established in Beijing, with Li as the sole shareholder.

On March 22, 2019, a limited company in Beijing, Li, and a catering company in Beijing signed the "Commercial Facility Lease Contract (Supplementary Agreement 2)", which stipulated that Li in the contract in question would be changed to a catering company in Beijing. On February 18, 2022, a limited company in Beijing delivered a "Notice of Termination of Shop Lease Contract" to a catering company in Beijing, stating that due to the non payment of rent and property fees by the catering company in Beijing, it constituted a serious breach of contract. Therefore, according to the provisions of the contract in question, the contract was notified to be terminated on February 18, 2022. The shop of the catering company in Beijing ceased operations on February 18, 2022, and the outstanding rent and property fees were paid before February 28, 2022. Afterwards, both parties handled the handover of the venue. A catering company in Beijing, Li, and Zhang stated that based on the transfer situation, not all items were transferred, and some indoor items were lost.


[Opinion of our lawyer's representative]


Regarding the question of whether Li bears responsibility. According to relevant provisions of the Company Law, Li, as the sole shareholder of a catering company in Beijing, has not provided evidence to prove that his personal property is independent of the company's property and should bear joint and several liability for the company's debts. A limited company in Beijing requested that Li jointly assume responsibility, which has factual basis and is supported by the court.

Regarding whether Zhang should bear responsibility. Li and Zhang were originally husband and wife, but divorced before the signing of the contract involved in the case. However, according to the facts ascertained by the court, the expenses for renting and renovating the property involved in the case by a catering company in Beijing, except for the first installment, were all paid by Zhang's personal account; And Zhang, in the name of his marital relationship with Li, communicated and exchanged with a Beijing limited company regarding the performance and termination of the contract in question, and provided his own property as collateral for the deferred payment debt of the contract in question. Therefore, the above facts are sufficient for the court to determine that Zhang's performance and debt repayment of the contract in question constitute debt joining. Therefore, the Beijing limited company's request for Zhang to jointly assume responsibility has factual basis supported by the court.


Summary of the Judgment

1. A limited company in Beijing stated that it had signed a separate lease agreement with a third party, who provided it with some decoration drawings. The drawings did not reflect the renovation of the fire gas equipment, but rather the kitchen part was further processed by a professional department using the original central air conditioning, with only a few air conditioners being relocated.

2. A certain people's government has issued a notice on implementing policies to support the stable development of small and medium-sized enterprises in response to the epidemic, which states that enterprises that are exempted from taxes must comply with government requirements to continue operating or close down in accordance with epidemic prevention regulations without laying off or reducing employees. After recognition, they can be exempted from paying rent for February, and rent for March and April can be halved.

On August 16, 2022, a collective asset supervision and management committee issued a notice on the relevant matters of reducing and exempting housing rent for small and micro enterprises and individual industrial and commercial households in the service industry. In 2022, small and micro enterprises and individual industrial and commercial households who rent collective commercial buildings belonging to enterprises and institutions, engage in production and business activities in accordance with laws and regulations, engage in the service industry, cooperate with government departments, and actively carry out epidemic prevention work can enjoy reductions and exemptions. The principle of rent reduction is based on the rental standard stipulated in the housing lease contract, with a reduction of 1 to 3 months' rent.

【 Judgment Result 】


1、 Within ten days from the effective date of the judgment, a certain catering company, Zhang, and Li in Beijing shall pay rent, occupancy and use fees, property management fees, heating fees, and rent during the rent free period for a certain limited company in Beijing;

2、 A catering company, Zhang, and Li in Beijing shall compensate a limited company in Beijing for breach of contract, legal fees, and preservation guarantee fees within ten days from the effective date of the judgment;

3、 Within ten days from the effective date of the judgment, a certain limited company in Beijing shall compensate a certain catering company, Zhang, and Li for the cost of facilities and equipment;

4、 Reject other litigation requests from a limited company in Beijing;

5、 Reject other counterclaim requests from Li and Zhang of a catering company in Beijing.