China Gezhouba Group No.6 Engineering Co., Ltd. v. Haishanghai International Yacht Club Co., Ltd.
摘要
Plaintiff Gezhouba signed a contract with Defendant Haishanghai, which provided that Gezhouba was to build a seawall and Haishanghai was to pay RMB49.5m by instalments at certain milestones. At the beginning, Gezhouba did part of the construction work and for that advanced natural resource taxes to the local authority. Later, Haishanghai delayed in payment of some instalments and could not provide the final design drawings for the further construction work. Consequently, Gezhouba had to suspend the work, and chase for both repeatedly. As Haishanghai did not give positive response, Gezhouba terminated the contract and sued to claim for the outstanding contract instalments, interest, losses arising from suspension of the construction work and reimbursement of advanced taxes. The court held that as Haishanghai failed to pay the outstanding instalments and provide the finalised design drawings despite of Gezhouba’s repeated demands, Gezhouba could terminate the construction contract; Gezhouba was also entitled to claim for the outstanding contract instalments, interest, losses of idleness and reimbursement of advanced taxes, but the losses of idleness was adjusted by the court to a reasonable sum.