Hetang District Court skillfully resolves a cross-border contract dispute

This article is reprinted from Zhuzhou Daily

Zhuzhou Daily News (Multimedia Reporter / Liu Qiong, Correspondent / Zhang Jun) A changed blueprint nearly caused a legal dispute over a smooth cross-border business deal. Recently, the Hetang District Court successfully mediated a contract dispute involving an Italian company, allowing both parties facing termination risks to reconcile and continue their cooperation.

In April 2023, an Italian service company ordered a batch of specialized molds from a mold manufacturing company in Zhuzhou through a foreign trade platform. After the Italian side made the payment as agreed, a change in the blueprint midway increased the difficulty of the manufacturing process, and the mold company was unable to deliver on time. In May 2025, the Italian company filed a lawsuit with Hetang Court, requesting to terminate the contract, refund the payment, and pay liquidated damages.

Judge Li Ruying, who handled the case, found that the cooperation between the parties was originally good, and the mold company did not intentionally breach the contract. Even after the blueprint change, they overcame difficulties to produce most of the molds. Considering that this batch of molds was custom-made according to the Italian company’s requirements and cannot be resold to others, a ruling against either party would cause significant losses.

To find the best solution, the judge initiated mediation: on one hand, clarifying responsibilities and confirming that the defendant should bear the breach of contract for late delivery; on the other hand, establishing an “online + offline” communication platform to guide both sides to negotiate rationally based on international commercial rules and long-term cooperation.

Ultimately, both parties reached an agreement: the Italian side accepted the molds already produced, the mold company refunded part of the payment and paid a small amount of liquidated damages, and the after-sales service standards were detailed. Currently, all molds have been delivered, and the cooperation between the parties continues.