Sales contract dispute between a Fuzhou agricultural supply company and its distributor

Case Summary

The plaintiff, a certain agricultural supplies trading company in Xiamen, entered into an "Agricultural Supplies Distribution Contract" with the defendant, a certain agricultural technology company in Fujian. The contract stipulated that the defendant would supply the plaintiff with agricultural products such as pesticides and fertilizers, guaranteeing that all products meet national mandatory quality standards. After the plaintiff sold these products to farmers in and around Xiamen, some farmers reported reduced crop yields or total crop failure following product use. Testing confirmed that the active ingredient content of the defendant's supplied products did not meet standards, rendering them non-compliant. Following full compensation to the affected farmers for their economic losses totaling 186 ten thousand yuan, the plaintiff filed a lawsuit against the defendant to recover the entire compensation amount, liquidated damages, and legal defense costs.

Key Dispute

1.Were there quality issues with the agricultural products supplied by the defendant?

2.Is the compensation claimed by the plaintiff for losses incurred by farmers reasonable?

3.Does the plaintiff have the right to claim full losses and liquidated damages from the defendant?

Case Strategy

1.Core evidence including the fixed distribution contract, product quality inspection report, proof of farmers' yield loss, compensation agreement between the plaintiff and the farmers, payment receipts, and communication records between both parties.

2.Prove that the product supplied by the defendant has an active ingredient content below standard, making it substandard and the direct cause of the farmers' crop yield reduction.

3.Demonstrate that the compensation amount paid to farmers by the plaintiff is supported by complete calculation records and vouchers, complies with applicable laws, and has been actually disbursed.

4.Calculate the liquidated damages payable by the defendant and the plaintiff's enforcement costs (including attorney fees, litigation fees, testing fees, etc.) in accordance with the breach of contract provisions stipulated in the agreement.

Processing Result

The court ruled that the defendant shall pay the plaintiff compensation of 186 ten thousand yuan, liquidated damages of 37.2 ten thousand yuan, and expenses for protecting rights of 12.8 ten thousand yuan, totaling 236 ten thousand yuan. The defendant shall bear all litigation costs and testing fees for this case.

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