On 1 April 2022, Wang, Li, and Golden Property Agency Ltd. (GPA) signed one contract, which contained the following items:

Wang sold her two-bedroom flat located in a good school district of Yinchuan City to Li at a price of 1.15 million RMB (sale price). Li should pay earnest money of 50,000 RMB on the day the contract is concluded.

Li agreed to pay the first instalment of 460,000 RMB by 30 July 2022. Wang should transfer to Li the property title at the local government's Housing Registrar and detach her household registration from the address of the flat on the same day of receiving the first instalment. Li should pay the remaining 640,000 RMB through a loan borrowed from the Municipal Housing Fund Management Center by 30 September 2022. Li agreed to bear all transaction fees and stamp duties.

In the case of non-performance, the breaching party should pay 0.5 of the sale price per day to the other party. In the case of a fundamental breach, the breaching party should pay 20% of the sale price to the other party.

Wang and Li should each pay an agency fee of 11,5000 RMB to GPA on the day of the conclusion of the contract.

Wang was told by GPA that Li purchased the flat for the purpose of helping his son get a coveted place in a good public primary school within the district. Immediately after concluding the contract, Li paid the agreed earnest money to Wang, and both paid the agreed agency fee to GPA. On 29 July 2022, Li paid the first instalment to Wang; the property title to the flat was transferred from Wang to Li on the same day, but Wang failed to detach her household registration from the address of the flat as agreed.

When applying for a loan of 640,000 RMB from the Municipal Housing Fund Management Center, Li found that he became disqualified for obtaining a loan because, on 15 August 2022, the local government imposed a new requirement that any loan applicant to the Municipal Housing Fund Management Center must have worked in Yinchuan for no less than 5 years. Li had worked in the city for only 4 years. Li had to negotiate with local commercial banks to seek a loan of 640,000 RMB. He notified Wang that the outstanding payment could be made at the earliest on 30 December 2022.

On 1 November 2022, Wang sued Li, requesting a termination of the sale of the property contract, and sought remedies for breach of contract, including compensating her for the agency fee paid to GPA. Li counter-argued that Wang had breached the contract by failing to detach her household registration from the address of the flat; as a result, Li could not register his son with the desired public primary school. Advise Wang on his legal position under the law of the PRC.