The two Defendants leased 1,086 containers from the Plaintiff for a term of three years, with an automatic extension period. The Defendants fell into arrears of payment, owing three months’ lease payments. The Plaintiff sued, seeking termination of the contract, return of the containers or payment of compensation at the replacement value of USD2,800 per container, as agreed in the contract. The Defendants agreed that they were in arrears, but said that the Plaintiff had retaken possession of some of the containers, and argued that the agreed replacement value was too high, as the market value of the containers was about RMB4,000.