Distribution contract dispute between a Fujian-based liquor company and its distributor

Case Summary

The plaintiff, a certain winery in Fujian Province, entered into a "White Liquor Distribution Contract" with the defendant, a certain trading company in Xiamen City, appointing the defendant as the exclusive distributor for the Xiamen area. The contract stipulated that the defendant's annual sales target was 1200 ten thousand yuan. If the defendant failed to achieve 80% of the annual sales target, the plaintiff had the right to revoke the defendant's exclusive distribution status, and the defendant would be required to pay liquidated damages equivalent to 10% of the annual sales target. Upon expiration of the contract term, the defendant achieved only 65% of the annual sales target, falling short of the minimum sales requirement agreed upon. Consequently, the plaintiff filed a lawsuit requesting revocation of the defendant's exclusive distribution status and payment of liquidated damages amounting to 120 ten thousand yuan.

Key Dispute

1.Does the defendant's failure to meet the annual sales target constitute a breach of contract?

2.Does the plaintiff have the right to revoke the defendant's exclusive distributorship status?

3.Is the amount of liquidated damages claimed by the plaintiff reasonable?

Case Strategy

1.Core evidence such as the fixed liquor distribution contract, annual sales targets, joint sales reconciliation records, sales data vouchers, settlement documents upon contract expiration, and communication records between both parties.

2.Prove that the contract explicitly stipulated annual sales targets and liability for breach of failure to meet them. The defendant fulfilled only 65% of the annual sales target, falling short of the minimum requirement of 80% specified in the contract, thereby constituting a breach.

3.Demonstrate that, per the contract agreement, the Plaintiff is entitled to revoke the Defendant's exclusive distributorship rights in Xiamen.

4.Regarding the reasonableness of liquidated damages, submit evidence such as the contractually agreed calculation standard, the defendant's breach of contract, and the plaintiff's actual losses to demonstrate that the liquidated damages amount complies with both the contract terms and applicable laws.

Processing Result

The court ruled to revoke the defendant's exclusive distribution rights for Baijiu in Xiamen. The defendant shall pay the plaintiff liquidated damages of 120 ten thousand yuan and bear all litigation and preservation costs for this case.

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