China Supreme Court Opinions on Contract Cases Involving COVID 19 Epidemic (2)

 2020-06-16  79


                                                                                                          



In order to further implement the CPC Central Committee's plans for coordinated COVID-19 prevention and control and economic and social development, do a solid job in the "six stability" work, implement the "six insurance" tasks, and guide people's courts at all levels to properly handle COVID-19 contract, financial, bankruptcy and other civil cases in accordance with the law, the following guidelines are put forward.


I.About contract cases.


  1. If the parties fail to perform the sales contract within the agreed time limit or the performance cost increases as a result of the epidemic situation or the epidemic prevention and control measures, and the continued performance does not affect the realization of the purpose of the contract, the people's court shall not support the request of the parties to terminate the contract.

     

    If the seller fails to fulfill the order or deliver the goods within the prescribed time limit as a result of the epidemic situation or the epidemic prevention and control measures, that continues to perform the contract cannot fulfill the purpose of the contract, the buyer requests to terminate the contract and return the advance or deposit already paid, the people's court shall support the requests;If the buyer requests the seller to bear the liability for breach of contract, the people's court shall not support it.

     

  2. Sales contract can be continued to perform, but the outbreak or epidemic or prevention and control measures result in labor, raw materials, logistics and other performance cost increased significantly, big price cuts, and it is obviously unfair for one party to continue to perform the contract, the party under adverse effects request to adjust the price, the people's court shall, in combination with the actual situation of case, adjust the price according to fair principle.If the seller fails to deliver the goods within the agreed time limit or the buyer fails to pay the goods within the agreed time limit as a result of the epidemic situation or the epidemic prevention and control measures, and the party requests to change the time limit for performance, the people's court shall change the time limit for performance in accordance with the principle of fairness in the light of the actual situation of the case.

     

    If a party has already altered a contract by adjusting the price or changing the time limit for performance, the people's court shall not support it if it requests the other party to assume the liability for breach of contract.

     

  3. If the seller and the buyer have concluded a contract for the sale of epidemic prevention materials, and the contract cannot be performed by reselling the epidemic prevention materials to another person at a high price, and the buyer claims that the profit gained by the seller shall be used as the compensation amount for the loss, the people's court shall support it.If the seller is unable to perform the sales contract because the government invokes or temporarily commandeers epidemic prevention materials according to law, and the buyer requests the seller to bear the liability for breach of contract, the people's court shall not support it.

     

  4. If the seller fails to deliver the premises within the time limit specified in the commercial housing sales contract or the buyer fails to pay the purchase price within the agreed time limit due to outbreak of epidemic or its relevant prevention measures, and the party concerned requests the termination of the contract and that the other party is liable for breach of contract, the people's Court shall not support it. However, if a party requests a change in the time limit for performance, the people's court shall make the change in accordance with the principle of fairness in the light of the actual situation of the case.

     

  5. The leased premises are used for business operation, and the epidemic situation or epidemic prevention and control measures cause the lessee to have difficulty in fund turnover or a significant decrease in business income, where the lessor requests the termination of the lease contract on the ground that the lessee fails to pay the rent in accordance with the agreed time limit, and the lessee is liable for breach of contract, the people's court shall not support the request.

     

  6. The small micro enterprises, individual industrial and commercial households and other lessee rent premises of state-owned enterprises and government departments, universities, research institutes, etc. for business, if their business is affected by the outbreak or epidemic prevention and control measures, the people's court shall support the requests that asking the lessor to waive rent in a certain period of time in accordance with the relevant state policies.

     

    When rent non-state house used for business, it has no business income or operating revenue decreased significantly due to the outbreak or epidemic prevention and control measures, and it is obviously unfair to continue to pay the rent according to the original leasing contract, the people's court may refer to the rent reduction policy and carry out mediation between the parties when the lessee request to waive rent, extend the lease or delays paying the rent,.If mediation fails, the contract shall be amended in accordance with the principle of fairness in the light of the actual circumstances of the case.

     

  7. If the contract party fails to complete the construction according to the agreed time limit due to the epidemic situation or the epidemic prevention and control measures, and the employer requests the contractor to bear the liability for breach of contract, the people's court shall not support it;Where the contractor requests to extend the construction period, the people's court shall, in light of the epidemic situation or the impact of epidemic prevention and control measures on the performance of the contract, support the request as appropriate.

     

    The epidemic situation or the epidemic prevention and control measures have resulted in a significant increase in labor and building materials costs, or have caused the contractor to suffer losses such as labor costs and equipment rental costs. If the contractor requests an adjustment of the price, the people's court shall make such adjustment in light of the actual situation of the case and in accordance with the principle of fairness.

  8. The people's court shall not support to terminate an offline training contract entered into by the party concerned if it is unable to conduct offline training due to the impact of the epidemic situation or epidemic prevention and control measures, and the purpose of the contract can be realized through online training or changing the training term. If a party requests to continue to perform the contract by means of online training, changing the training period or adjusting the training fee, the people's court shall modify the contract according to the principle of fairness in light of the actual situation of the case.

     

    The people's court shall support the termination of the contract by the party receiving the training if the contract cannot be conducted offline or the purpose of the contract cannot be achieved through online training due to the epidemic situation or the epidemic prevention and control measures. The people's court shall support to terminate a training contract with time-limited requirements if the purpose of the contract cannot be realized by changing the training period, and the receiving party requests to terminate the contract. After the termination of the training contract, the training fees that have been paid in advance shall be refunded in whole or in part according to the training hours and other conditions.

     

    9.If a person with limited civil capacity spends money that is not suitable for his age or intelligence by participating in online paid games or "rewards" on online live streaming platforms without the consent of his guardian, and his guardian requests the Internet service provider to return the money, the people's court shall support it.