Successful Solving Mask Contract Dispute
American company contacted a supplier of masks in China. Under the condition of paying 50,000 dollar as advance payment according to contract, but supplier didn’t deliver the goods on time as agreed and repeatedly postponed the delivery date. Then, buyer doubted the supplier’s ability, and, they could not bear the economic losses and reputation impact caused by the late delivery.
After analyzing the case, our lawyer held that the supplier should ship goods on time according to the contract after receiving the payment, otherwise it would constitute a breach of contract. After our lawyer involved in this case, by negotiation between the parties, the supplier actively fulfilled the contract and finally exported the goods to the U.S. on time.
At present, there are two kinds of disputes over exporting masks: one is caused by logistics; the other is caused by the quality of goods.
Most of the disputes caused by logistics are that the logistics company can not deliver the products to the destination in time as agreed nor in the agreed manner. Logistics costs soared during the epidemic period. The delay reasons of logistics companies was partly due to the large volume of goods transported during the epidemic period, the backlog of goods and the influence of customs policies. More reasons are that the logistics companies used low-cost transportation modes, such as when supposed to use air transportation but actually use ways of sea transportation or railway transportation. For example, a logistics company promised to adopt door-to-door service by air within a week. As a result, it took a month to use sea transportation. Logistics delay directly leads to the price reduction and even unsalable, buy at a high price but sell at a low price, causing serious economic losses to the buyer. Sellers and buyers generally do not sign a contract with the logistics company. They only agree orally and without liability of breach of contract, which makes it more difficult for buyers to protect their rights.
The disputes caused by the quality of goods are very common, accounting for a large proportion in international trade disputes. For example, the seller quoted prices for the products of famous companies, but the goods actually delivered were inferior products from small workshops. Many sellers are companies set up in early 2020 with little registered capital. In fact, they are shell companies, and their registered addresses do not exist. Also there are other situations that the factory provides false qualifications, leading to confiscation by the customs, or unable to sell.