Dispute over Sales Contract Between a Tea Company in Fujian and a Distributor

Case Summary

The Plaintiff, a certain tea company in Fujian Province, entered into a "Tea Sales Contract" with the Defendant, a certain trading company in Xiamen City. The contract stipulated that the Defendant would purchase Wuyi Rock Tea, Tieguanyin, and other tea products from the Plaintiff for a total price of 48 ten thousand yuan, with payment due within 30 days after delivery and acceptance. The Plaintiff fulfilled its obligations by delivering all the tea as agreed. The Defendant raised no quality objections within 60 days of receipt but refused to pay the full amount, citing unsatisfactory taste and poor market sales. After repeated unsuccessful collection efforts, the Plaintiff filed a lawsuit requesting the Defendant to pay the outstanding amount of 48 ten thousand yuan plus overdue payment penalties.

Key Dispute

1.Do the tea leaves delivered by the plaintiff meet the quality standards specified in the contract?

2.Is the defendant's defense—that they refused to pay because the taste did not meet expectations and sales were poor—valid?

3.Does the liquidated damages claimed by the plaintiff comply with the contract agreement and applicable laws?

Case Strategy

1.Fixed tea sales contract, product quality standards agreement, delivery notes, receipt records, communication logs between both parties, and payment demand notices as core evidence.

2.The evidence shows that the contract only specified objective quality standards for the tea, such as variety, grade, origin, and production date. It did not establish subjective criteria like taste; therefore, the defendant's argument that the tea failed to meet their taste expectations lacks a contractual basis.

3.The defendant failed to raise any quality objections within 60 days after receiving the goods. According to applicable law, this shall be deemed as confirmation that the tea's quality conforms to the agreement.

4.Calculate the liquidated damages for the defendant's overdue payment based on the standard specified in the contract.

Processing Result

The court ordered the defendant to pay the plaintiff 48 ten thousand yuan in product payments, plus liquidated damages for overdue payment calculated at 0.04% per day on a principal of 48 ten thousand yuan, from the due date until full payment is made; the defendant shall bear all litigation and preservation costs.

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