International contract disputes: How to deal with commercial contract disputes among multinational corporations?
International contract disputes: How to deal with commercial contract disputes among multinational corporations?
By : Kobre & Kim LLP
Case Overview:
Ms Wang is a Chinese-American with US citizenship and lives in Los Angeles, California. She runs a small import-export company specializing in trade between China and the United States. In May 2022, Wang signed a contract for the purchase of goods worth $500,000 with a Chinese supplier, with the agreement that the supplier should deliver the goods within 60 days of receiving the advance payment. However, when the agreed delivery date came, the supplier failed to deliver the goods on time. Ms. Wang communicated with the supplier many times, but the supplier kept evasive for various reasons and finally refused to continue to perform the contract.
Legal Response:
Evidence collection:
Ms. Wang contacted our law firm and explained the situation in detail. We advised her to keep all documents and evidence related to the procurement contract, including contract texts, payment vouchers, records of correspondence with suppliers, etc.
Ms Wang collated evidence such as the procurement contract, bank transfer records of the advance payment, and records of emails and telephone correspondence with suppliers to prove that she had fulfilled her contractual obligations.
Transnational Litigation and labor arbitration:
On behalf of Ms. Wang, we sent a lawyer's letter to the Chinese supplier, asking it to deliver the goods or refund the advance payment within the specified time. The lawyer's letter details Ms. Wang's rights and grounds and informs her that further legal action will be taken if the supplier fails to perform the contract as required.
International Legal Collaboration and Mediation:
The court accepted the case and scheduled a hearing. At the trial, the lawyer presented all the evidence on behalf of Ms. Wang and had a full debate. The supplier argued that it could not deliver the goods on time due to production problems, but failed to provide a reasonable explanation. The judge made mediation proposals during the trial in the hope that the two sides could reach a settlement. After many negotiations, Wang and the supplier finally reached a settlement agreement, in which the supplier agreed to refund the entire advance payment of $100,000 and pay a 5 percent penalty.
Key Points in the Case:
1. In international civil proceedings, evidence is the key. Parties should keep all documentary and electronic evidence relevant to the case to prove their claims.
2. Bank transfer records, contract texts and correspondence records are all important evidence that can effectively prove the facts of a case.
3. In international civil cases, the court may apply the principles of private international law and choose to apply the law of a certain country to resolve the dispute.
