How to distribute civil liability in international trade dispute by Chinese court

The focus of dispute in this case is: whether the products delivered by the defendant Hai company to the plaintiff Jie company through the third party have quality problems, and how to distribute its civil liability.

The plaintiff, Jie company, was registered and established in Turkey, and the sale and purchase of the subject matter was outside the territory of China. This case is a dispute over the contract for the international sale of goods. Article 145 (1) of the general principles of the civil law of the people’s Republic of China stipulates: “the parties to a foreign-related contract may choose the law applicable to the settlement of contract disputes, unless otherwise stipulated by law.” Both the plaintiff and the defendant choose to apply the law of the people’s Republic of China in the process of litigation. In line with the above legal provisions, Qingdao intermediate people’s Court of Shandong Province has determined that the law of the people’s Republic of China is the applicable law for the settlement of the dispute in this case.

The plaintiff and the defendant have no objection to the establishment of a contractual relationship for the international sale of goods between the two parties, and have no dispute over the name, subject matter and quantity of the parties to the contract (referring to the part actually performed). There are differences between the parties on whether the plaintiff and the defendant have ever concluded a contract in writing. The existence of such differences does not affect the final settlement of the case and can be shelved. The legal relationship of the sales contract between the plaintiff and the defendant is not invalid under the provisions of Chinese laws and administrative regulations, and is protected by law and legally binding on the parties.

Article 148 of the contract law of the people’s Republic of China stipulates: “if the purpose of the contract cannot be realized because the quality of the subject matter does not meet the quality requirements, the buyer may refuse to accept the subject matter or terminate the contract. If the buyer refuses to accept the subject matter or rescinds the contract, the risk of damage to or loss of the subject matter shall be borne by the seller. ” The “quality requirements” in the warranty liability for defects in the subject matter stipulated in this article include not only the technical standards and quality requirements stipulated by the exporting country, but also the technical standards and quality requirements stipulated by the importing country, The parties to the contract may agree on internationally accepted product standards and technical requirements or make other special agreements.

The defendant claimed that he devoted a lot of manpower and material resources to design and manufacture products for the plaintiff. Whether it is to purchase according to the exhibits or to accept orders to start R & D and production, after all, it needs to reach an agreement on the sale of products before it can be fulfilled, especially in the international trade of goods across countries and regions. When different countries and regions may adopt different quality standards and requirements for products, especially for products of special industries including mobile phones, it is necessary and correct to make clear and specific agreements on the quality standards and requirements of products in advance. However, as far as the adducing evidence of both parties in this case is concerned, neither party has submitted the evidence specifically agreed on the quality standards and requirements in advance. Although the relevant evidence materials submitted involve this problem, they can not explain the problem. The plaintiff claimed that the products actually delivered by the defendant were lack of raw materials and parts, which constituted product quality problems.

When the plaintiff accepts the authentication opinions submitted by the defendant, he can not take it for granted that the specifications / standards on which the authentication opinions are based are the quality requirements that can realize the purpose of the contract. The technical standards and quality requirements of transnational telecommunication products are relatively complex issues. The handling of this case is lack of technical specifications, which can only be confirmed and handled by applying the evidence rules and contract law on the basis of the evidence submitted by the plaintiff and the defendant.