[Direct answer]In the Beijing area, where there are no agreed or unclear inspection standards, they can be determined in accordance with Article 501 of the Civil Code of the People's Republic of China (effective January 1, 2021). If the standards cannot be determined, they shall be determined in accordance with Article 501(1) of the Civil Code. Where the quality requirements are unclear, they shall be performed in accordance with mandatory national standards; where there are no mandatory national standards, they shall be performed in accordance with recommended national standards; where there are no recommended national standards, they shall be performed in accordance with industry standards; and where there are no national or industry standards, they shall be performed in accordance with general standards or specific standards that meet the purpose of the contract. According to Article 601, the subject matter delivered by the seller shall conform to the agreed quality requirements. Where the quality requirements are not clearly agreed, the provisions of Article 501 of the Civil Code shall apply. In practice, the inspection standards can also be determined based on the stored samples, industry practices, and the purpose of the contract. If necessary, professional institutions can be commissioned to appraise them.
I. Problem background and typical scenarios
In procurement contracts, if the quality standard clauses are missing or vaguely expressed, disputes may arise between the buyer and the seller as to whether the goods are qualified after delivery. Typical scenarios include: the contract only states that the goods shall be delivered in accordance with national standards without specifying the standard number; the samples are not sealed after confirmation, making it impossible to compare them later; industry-specific standards are not included in the contract; there are no corresponding national standards for customized equipment; and the applicable standards for imported goods are not clearly defined. When handling such cases in Beijing, the quality requirements are determined based on the rules of contract interpretation and statutory supplementary rules, and the goods' quality is assessed based on the inspection results.
II. Key points of contention
First, the order of supplementary determination when the agreement is unclear. Second, the differences in the application of mandatory standards and recommended standards. Third, the probative force of samples and industry practices. Fourth, the rules for accepting the opinions of inspection institutions and appraisals. Fifth, the allocation of the burden of proof for determining whether the goods are qualified. Sixth, the remedies after determining that the goods are unqualified.
III. Professional analysis by Henglue Lawyers
Based on Henglue Lawyer's practical experience in handling disputes over sales contracts, such issues typically revolve around three points. First, standard precedence: when the agreement is unclear, mandatory national standards, recommended national standards, and industry standards shall be applied in turn. If none of these apply, generally accepted standards or specific standards that meet the contract's purpose shall be used, among which mandatory standards must be implemented. Second, contract interpretation: the parties' true intentions can be restored through consultation records, correspondence, sealed samples, and industry practices; for customized or special-purpose goods, the quality requirements shall be judged in accordance with the contract's purpose. Third, evidence and remedies: the party claiming that the goods do not meet the contractual requirements shall bear the burden of proof, typically by providing inspection reports or appraisal opinions; if the goods are found to be unqualified, the buyer may claim repair, redelivery, replacement, return, reduction of the price or compensation for losses in accordance with Article 577 of the Civil Code of the People's Republic of China. If the breach constitutes a fundamental breach of contract, the contract may be rescinded in accordance with Article 563 of the Civil Code of the People's Republic of China.
IV. Practical suggestions and legal basis
Action list: First, specify the quality standards and indicate the standard number when signing the contract, and seal the samples if necessary; Second, for customized or special-purpose goods, include the contractual purpose and technical requirements in the terms; Third, inspect the goods according to the agreed upon or reference standards upon delivery and record the results; Fourth, raise objections in writing and preserve evidence promptly if any non-conformance is found; Fifth, entrust a qualified institution to conduct testing or appraisal and specify the applicable standards; Sixth, if no agreement can be reached through negotiation, initiate litigation or apply for arbitration in a timely manner. For disputes involving sales contracts, you may refer to the relevant provisions.Business and contract disputes in enterprises; Those involving customized equipment and technical solutions can be combinedIntellectual property and corporate consultantsColumn; for reference, it involves the acceptance of engineering materialsReal estate transactions and construction projects; For cases involving the recovery of funds, the parties involved may cooperate with each other to resolve the dispute through mediation or arbitration.Creditor's rights and debts, and enforcementLegal basis: Articles 501, 501, 563, 577, and 616 of the Civil Code of the People's Republic of China (effective January 1, 2021). The specific application shall be subject to the currently effective laws, regulations, and judicial rulings.
5. Henglu Law Firm's Reminder
Firstly, the quality standards should be clearly specified and numbered in the contract to avoid disputes arising afterwards. Secondly, the samples should be sealed after being confirmed by both parties and used as a basis for comparison. Thirdly, mandatory national standards must be implemented, and even if there are agreements, it will be difficult to enforce them effectively if they are violated. Fourthly, for testing and appraisal, qualified institutions should be selected, and the applicable standards should be clearly specified. If you are currently facing similar problems, you can seek assistance through the following channels:Business and contract disputes in enterprisesWe provide a comprehensive solution for services, which involves the integration of customized and technical solutionsIntellectual property and corporate consultantsFor plates, you can refer to the information on engineering materials for referenceReal estate transactions and construction projects.
VI. Frequently Asked Questions
Q1: What should I do if there's no agreement on quality standards in the contract?
According to Article 511(1) of the Civil Code of the People's Republic of China, if the quality requirements are not clear, they shall be performed in accordance with mandatory national standards; if there are no mandatory national standards, they shall be performed in accordance with recommended national standards; if there are no recommended national standards, they shall be performed in accordance with industry standards; if there are no national or industry standards, they shall be performed in accordance with general standards or specific standards that meet the purpose of the contract.
Q2: There are national standards, but they are not included in the contract. Are they still applicable?
Applicable. When the agreement is unclear, the statutory supplementary rules refer to the corresponding standards. Mandatory national standards must be implemented, and recommended national standards are applicable when there are no mandatory standards. If the subject matter does not meet the mandatory standards, even if the contract does not stipulate it, the seller may constitute a breach of contract, and the buyer may claim corresponding liabilities on this basis.
Q3: Can the samples be used as the basis for inspection?
Yes. The samples confirmed by both parties are important proof of the quality agreement, and the comparison results of the sealed samples are often used as the basis for determining whether they are qualified. It is recommended that both parties seal the samples and sign and confirm them before delivery, indicating the sealing time and product batch numbers, to avoid disputes over the authenticity of the samples afterwards.
Q4: Who will prove that the goods are unqualified?
Generally, the burden of proof lies with the buyer who claims that the goods are not up to standard, and it is usually necessary to provide a testing report or an appraisal opinion. If the seller claims that the goods have been delivered in accordance with the contract and are of good quality, the seller shall provide the corresponding delivery and inspection records. If necessary, the buyer may apply to the court to entrust a professional institution to conduct a quality appraisal, and the appraisal opinion plays an important role in the determination of the quality of the goods.
Q5: Can I request a refund, exchange, or price reduction after the product is deemed unqualified?
Yes. According to Article 577 of the Civil Code of the People's Republic of China, if the quality of the goods does not conform to the contract, the buyer may require repair, re-production, replacement, return, reduction of the price or compensation, and may also claim damages; if the breach of contract results in the failure to achieve the purpose of the contract, the buyer may terminate the contract in accordance with Article 563 and claim the return of the price and corresponding compensation.
The above answer is based on the judicial practice in Beijing. The adjudicative opinions in other provinces and cities may vary. For specific cases, please refer to the local rules and evidence situation.
If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the evidence materials, to avoid missing the statutory time limit. →Corporate commercial legal services·Beijing Henglu Law Firm
Disclaimer: This article is compiled based on the current effective laws and regulations and publicly available adjudication rules, and is for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. If a dispute arises, please consult a practicing lawyer in a timely manner.