Frequently Asked Questions

27 2026-10

What should I do if I raised a quality objection during the quality complaint period but didn't keep any evidence?

During the quality objection period, if an objection has been raised but there is no evidence to support it, it is still possible to provide additional evidence such as chat records, witness statements, and appraisal reports. If the objection period has passed and no notification has been received, the product may be deemed as qualified, and remedial measures should be taken promptly.

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27 2026-10

Can the buyer refuse to pay for the goods delivered by the seller if there are quality defects in the goods?

The seller delivered the goods with defects in rights, and the buyer may suspend the payment of the corresponding price in accordance with Article 614 of the Civil Code; it is necessary to have a basis and notify the seller in a timely manner to avoid breaching the contract on its own part.

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27 2026-10

After the contract is terminated, can I still claim the expected benefits?

After the contract is terminated, the party concerned can still claim compensation for the loss of anticipated profits. According to Article 584 of the Civil Code, this compensation is limited to the scope that could be foreseen at the time of contract conclusion, and the party concerned must provide evidence to establish the certainty and causality of the loss.

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27 2026-10

After the contract is terminated, are the jurisdiction clauses in it still valid?

After the contract is terminated, the jurisdiction clauses are usually still valid and have independence according to Article 507 of the Civil Code; however, if the agreement itself is invalid, the jurisdiction shall be determined in accordance with the law. It is recommended to carefully draft the agreement when signing a contract.

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27 2026-10

After issuing the termination notice, what should I do if the other party has objections?

If the other party raises objections after the issuance of the notice of rescission, they may request the court or arbitration institution to confirm the validity of the rescission; the party exercising the right of rescission shall prepare evidence of the grounds for rescission and, if necessary, actively request confirmation of its validity.

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27 2026-10

Are the consequences of contract termination the same as those of contract invalidation?

The contract is invalid from the outset and shall be returned in accordance with Article 157 of the Civil Code; the contract shall be liquidated retroactively and the parties shall restore the status quo and compensate for the losses in accordance with Article 566. The consequences of the two are different, and the remedial path should be identified first.

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27 2026-10

How to calculate the interest on the outstanding debt after the contract is terminated?

After the contract is terminated, the interest on the outstanding debt shall be calculated from the date of payment due. Where there is an agreement on interest, the interest shall be paid according to the agreement; where there is no agreement on interest, the interest shall be calculated according to the LPR. For some contracts, the standard for the breach of contract penalty for overdue payment...

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27 2026-10

Can the depositary request the return of the items at any time under the custody contract?

In the storage contract, the depositor can retrieve the stored items at any time; if the depositary damages or refuses to return them, the depositor may claim breach of contract liability and return of the items. According to Article 899 of the Civil Code, there is no need to wait for the expiration of the time limit to retrieve the items.

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27 2026-10

Can a commission contract be terminated unilaterally at any time?

Both parties to the entrustment contract enjoy the right to terminate the contract at any time, but they shall compensate for the losses caused to the other party by the termination; in the case of a gratuitous entrustment, the party shall only bear responsibility in the event of intentional or gross negligence.

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27 2026-10

Can a non-fixed-term contract be terminated at any time upon notice?

The parties to a non-fixed-term contract may terminate it at any time, but they shall notify the other party within a reasonable period of time. For non-fixed-term leases, the parties must give reasonable advance notice before terminating the contract, and they shall not bear any breach of contract liability in this case.

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27 2026-10

Can the breach of contract of one batch of goods lead to the termination of the entire contract in the case of partial delivery?

In the case of partial deliveries, if one batch is in breach of contract, the entire contract can only be terminated if that batch and all future batches fail to achieve the contractual purpose. According to Article 633 of the Civil Code, the matter shall be handled differently depending on the circumstances.

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27 2026-10

How long does it take for the other party to rescind the contract if one party delays in performing its obligations and is given a notice of default?

If a party delays in performing its main obligations and fails to perform them within a reasonable period after being reminded, the other party may terminate the contract; there is no standard timeframe for a reasonable period, and the right to terminate the contract must be exercised within one year after knowing the relevant facts. It is recommended to send a written reminder to keep a record of...

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27 2026-10

How much does the breaching party have to pay if they sue to terminate the contract?

If the breaching party sues to terminate the contract, the compensation shall be limited to the actual losses of the performing party, including direct losses and expected benefits. According to Articles 566 and 584 of the Civil Code, the breaching party shall still bear the liability for breach of contract.

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27 2026-10

Can the party in breach of contract actively sue to request the termination of the contract?

In principle, the party in breach of contract does not have the right to rescind the contract. However, according to Article 580, Paragraph 2 of the Civil Code, if the performance of a non-monetary obligation cannot achieve the purpose of the contract, the party may request the court or arbitration institution to terminate the contract and bear the corresponding responsibilities.

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27 2026-10

If one party breaches the contract, can the other party also obtain benefits that can be offset against the losses incurred?

If one party breaches the contract and the other party profits from it, whether the profit can be offset against the compensation depends on whether it is caused by the breach of contract, foreseeable, and not repeated; and the compensation shall be limited to the losses according to Articles 584 and 591 of the Civil Code.

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