Successful settled purchased excavators dispute

In January 2024, the Australian buyer purchased excavators and other accessories. Total amount of contract was 890,000 USD. Payment Terms: 30% Pay deposit after sign sales contract. 40% pay the products ready to load on the container. 30% Pay when received copy of B/L from the seller. Delivery Time: Shipping within 25 days counting from the date of arrival of deposit payment. Delivery Terms: CNF from main China Port. But after buyer received the machines, found machines had several quality problems. On behalf of our client, rejected the machine, and demanded for refunding of the payments. After we conducted several negotiations with the supplier, for pushing them for refunding the payment because of the serious quality problems, through our efforts, at last both parties terminated the contract, and the supplier refunded the payments. Buyer was satisfied with the result of the case, and has confidence for the legal environment of China.

According to 577 Liabilities for Breach of Contracts of the civil code of The People’s Republic of China, “If a party fails to perform its obligations under a contract, or rendered non-conforming performance, it shall bear the liabilities for breach of contract by specific performance, cure of non-conforming performance or payment of damages, etc.” Article 584“Where a party fails to perform his contractual obligation or his performance does not conform to the agreement so that the other party suffers loss, the amount of compensation shall be equivalent to the loss caused by the breach of contract, including the benefits expected to be obtained should the contract had been performed .…”