Partner Sun Yan and Wang Qi won over a contract dispute of mineral resources equity transfer, and the Chifeng Intermediate People’s Court comprehensively support the claims of Tian Yuan’s client, the transferor.
The dispute focus of this case is that the mineral resources reserves of the Harqin Banner Jinbaoli Mining Co., Ltd., the target company and the transferor on the contract, should be evaluated and reorganized by Beijing Huayang Hongji Tourism Investment Co, Ltd., the transferee on the contract. Huayang Hongji argued that the reserves and quality of mineral resources were different from materials submitted by Jinbaoli, and they argued for cancelling the contract because of the fraud. As the contract had made the two parties aware the uncertainty of the reserves and quality of mineral resources, and it also clearly prescribed that the transferee Huayang Hongji to bear the risk and the transferor Jinbaoli to undertake for no responsibility, the court judged the Jinbaoli no fraud, rejected the claims of Huayang Hongji, and ordered Huayang Hongji to pay the equity transfer amount of RMB 50.2 million as well as the default.
The mining resources transfer experienced big risk and related contracts were critically important to it. This case also showed the great importance of signing exchange provision.