International Trade Dispute Swiftly Resolved Through Legal Pressure and Negotiation
A contractual dispute between a Chinese Supplier and an international Buyer over delayed delivery of customized steel structure components was resolved through targeted legal pressure and constructive dialogue. The Supplier, engaged in manufacturing structural parts for industrial projects, issued a pro forma invoice for 90.78 tons of steel components under CIF terms. Despite full payment from the Buyer in accordance with the agreed schedule, the Supplier failed to fulfill its delivery obligations within the stipulated timeframe. This breach threatened the Buyer critical project deadlines and exposed them to daily operational losses, alongside reputational damage.
Upon engagement, our Law Firm dispatched formal demand letter invoking China’s Civil Code and the United Nations Convention on Contracts for the International Sale of Goods. The letter underscored the Supplier’s obligation to adhere to the agreed delivery timeline, warned of potential contract termination, and outlined claims for damages. Faced with mounting legal and reputational risks, the Supplier promptly prioritized fulfillment, ensuring timely delivery and mitigating further losses for the Buyer.
The resolution hinged on strategic legal arguments under dual frameworks. Under China’s Civil Code, Article 563 permitted the Buyer to terminate the contract for material breach after reasonable notice, while Article 566 secured its right to seek compensation. CISG Article 45 reinforced the Supplier’s duty to deliver conforming goods, with Article 74 authorizing damages for delay and consequential losses. By combining these legal pillars with assertive advocacy, we compelled the Supplier to negotiate in good faith. The outcome highlights the effectiveness of calibrated legal pressure in resolving cross-border disputes, safeguarding clients’ commercial interests while preserving future collaboration.
