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Plaintiff construction unit and Defendant subcontractor concluded Agreement, agreeing that the construction unit would work on a dredging project in a channel area, and that the subcontractor should pay the construction unit 200,000 yuan in advance within three days of the arrival of its dredger at the designated construction site, with the balance to be paid within 10 days of the ship’s departure from the site. After the construction unit completed the construction, both parties made settlement of the project payment to recognize that the total project payment was 1,320,000 yuan. Later, the subcontractor filed Recognition of Claims, recognizing that it still owed the construction unit 320,000 yuan, and promised to pay it off within two years from the date of concluding Recognition of Claims. The legal representative of Defendant subcontractor in Recognition of Claims in clear that it owed to the project to bear joint and several guarantee, until the project was paid off. However, after repeated urging by the construction unit, two Defendants did not repay, so the construction unit filed an action before the court, requesting two Defendants to pay the outstanding amount and the corresponding interest. The court held that (1) the subcontractor should pay the arrears and the corresponding interest, because the construction unit completed the dredging construction operation according to Agreement, and settlement, both parties had no objection to the total amount of work and the remaining balance of 320,000 yuan owed. The subcontractor’s failure to repay the outstanding amount of the project according to the repayment period promised in Recognition of Claims was a breach of contract; (2) the legal representative of the subcontractor should be jointly and severally liable for the repayment. According to the Guaranty Law of the People’s Republic of China Article 18, if the subcontractor failed to repay the outstanding amount, its legal representative, as a joint and several guarantor, should bear joint and several liability for repayment, and Plaintiff should have the right to claim rights from it.

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Zhongshan Changjun Dredging Engineering Co., Ltd. v. Ningde Jianghong Dredging Engineering Co., Ltd. et al.

  • 章节

  • 发表日期：

    2025年

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  • Martin Davies,
  • Jiang Lin

摘要

Plaintiff construction unit and Defendant subcontractor concluded Agreement, agreeing that the construction unit would work on a dredging project in a channel area, and that the subcontractor should pay the construction unit 200,000 yuan in advance within three days of the arrival of its dredger at the designated construction site, with the balance to be paid within 10 days of the ship’s departure from the site. After the construction unit completed the construction, both parties made settlement of the project payment to recognize that the total project payment was 1,320,000 yuan. Later, the subcontractor filed Recognition of Claims, recognizing that it still owed the construction unit 320,000 yuan, and promised to pay it off within two years from the date of concluding Recognition of Claims. The legal representative of Defendant subcontractor in Recognition of Claims in clear that it owed to the project to bear joint and several guarantee, until the project was paid off. However, after repeated urging by the construction unit, two Defendants did not repay, so the construction unit filed an action before the court, requesting two Defendants to pay the outstanding amount and the corresponding interest. The court held that (1) the subcontractor should pay the arrears and the corresponding interest, because the construction unit completed the dredging construction operation according to Agreement, and settlement, both parties had no objection to the total amount of work and the remaining balance of 320,000 yuan owed. The subcontractor’s failure to repay the outstanding amount of the project according to the repayment period promised in Recognition of Claims was a breach of contract; (2) the legal representative of the subcontractor should be jointly and severally liable for the repayment. According to the Guaranty Law of the People’s Republic of China Article 18, if the subcontractor failed to repay the outstanding amount, its legal representative, as a joint and several guarantor, should bear joint and several liability for repayment, and Plaintiff should have the right to claim rights from it.