Page 26 - 2017 Policy Watch
P. 26
icy Watch: The Circuit Courts of the Supreme People’s Court
Shenyang Company to pay the price for the goods in the consecutive transactions, it is not advisable to look upon
amount of RMB49,000,000 and the losses for its delayed one certain transaction without considering the characters
payment. The Shenyang Company was dissatisfied and of the acts of the parties to the contract before and after
appealed to the Supreme People’s Court. that transaction. Instead, [the judges] should used their
best efforts to explore the intention of the parties so as to
The Second Circuit Court of the Supreme People’s form an inner conviction and make a determination with
Court tried and held that there had been existing perennial the proper use of their discretion.
cooperation and transactions between Changlu Company
and Jianping Company before this case and the execution
of the contracts involved were also arranged by Jianping
Company. Previous large scale transactions were all
completed where Jianping Company forwarded the Bills
on behalf of the Shenyang Company. In reviewing the acts
of the agent and the principal before performance of the
contracts involved, the executing process of the contracts
involved, the attitudes of the Parties during the performance
of the contract into comprehensive consideration, it was
sufficient to determine that there formed the appearance
of an agency between Changlu Company and Jianping
Company. In reliance on this appearance, the acts of
receiving the Bills by Jianping Company constituted
apparent agency and it shall be deemed that Shenyang
Company had made payment to Changlu Company. The
determination of an apparent agency by the court of first
instance was only limited to a single transaction involved
without regard to the whole situation of the transactions
before and after this transaction among the parties. The
final conclusion made an unclear determination of the facts
with the wrong application of law. Therefore, this Court
revoked the judgment of the first instance and rejected the
claims of Changlu Company pursuant to law.
Comment:
The Parties to this case were from Liaoning Province
and Tianjin Municipality. This case is a typical one regarding
determination of the legal relationship of apparent agency.
In most cases, the constituent items for apparent agency
during the trial of civil and commercial trials are not easily
based on objectively fixed standards due to the complexity
of civil and commercial transactions and the execution of
contracts, the performance of contracts, trading modes,
trading practices and other various factors should be
taken into comprehensive consideration. Especially in
26
Shenyang Company to pay the price for the goods in the consecutive transactions, it is not advisable to look upon
amount of RMB49,000,000 and the losses for its delayed one certain transaction without considering the characters
payment. The Shenyang Company was dissatisfied and of the acts of the parties to the contract before and after
appealed to the Supreme People’s Court. that transaction. Instead, [the judges] should used their
best efforts to explore the intention of the parties so as to
The Second Circuit Court of the Supreme People’s form an inner conviction and make a determination with
Court tried and held that there had been existing perennial the proper use of their discretion.
cooperation and transactions between Changlu Company
and Jianping Company before this case and the execution
of the contracts involved were also arranged by Jianping
Company. Previous large scale transactions were all
completed where Jianping Company forwarded the Bills
on behalf of the Shenyang Company. In reviewing the acts
of the agent and the principal before performance of the
contracts involved, the executing process of the contracts
involved, the attitudes of the Parties during the performance
of the contract into comprehensive consideration, it was
sufficient to determine that there formed the appearance
of an agency between Changlu Company and Jianping
Company. In reliance on this appearance, the acts of
receiving the Bills by Jianping Company constituted
apparent agency and it shall be deemed that Shenyang
Company had made payment to Changlu Company. The
determination of an apparent agency by the court of first
instance was only limited to a single transaction involved
without regard to the whole situation of the transactions
before and after this transaction among the parties. The
final conclusion made an unclear determination of the facts
with the wrong application of law. Therefore, this Court
revoked the judgment of the first instance and rejected the
claims of Changlu Company pursuant to law.
Comment:
The Parties to this case were from Liaoning Province
and Tianjin Municipality. This case is a typical one regarding
determination of the legal relationship of apparent agency.
In most cases, the constituent items for apparent agency
during the trial of civil and commercial trials are not easily
based on objectively fixed standards due to the complexity
of civil and commercial transactions and the execution of
contracts, the performance of contracts, trading modes,
trading practices and other various factors should be
taken into comprehensive consideration. Especially in
26
