[introduction to the lawyer of this case] Liu Hong is the founding partner and senior partner of Liaoning Tongfang law firm. He once served as a judge of the economic trial division of the Liaoning Provincial Higher People's court. He participated in the organization and research of some difficult economic dispute cases in the province and gave guidance to the economic trial of lower courts. He was in charge of the economic trial guidance of the intermediate courts in southern Liaoning (Dalian, Yingkou, Anshan and Liaoyang). In 1997, the case of whether non transferable bills of exchange can be pledged, which was tried by Liu Hong, was selected by the Supreme People's court.
[judgment points] first, whether the contract meets the conditions for dissolution; Second, US $100 million is the bidding deposit. Can it be recognized as the deposit under the contract; Third, since the appellant has started construction on the delivered part of the land, if the contract is terminated, whether the delivered land can be returned and whether the appellee should pay the appellant the discount of the project under construction.
[basic case] in June 2010, the appellant won the land use right covering an area of 765993 ㎡ according to law, and successively signed three state owned construction land use right transfer contracts and relevant supplementary agreements with the appellee. After the assignment contract was signed, the appellant paid a deposit of US $100 million (equivalent to RMB 675477040.00) to the appellee according to the contract, and made overall planning and design for the project, which was approved by relevant government departments. Subsequently, the appellant made investment and construction on the land delivered in advance (about 8.5% of the total area). However, the appellee failed to fulfill the obligation of delivery of the remaining land, which made the contract purpose of the appellant impossible to be realized. Therefore, the appellee requested to cancel the transfer contract and relevant supplementary agreements, required the appellee to return double the deposit, pay the interest of the paid transfer price, and compensate the economic losses suffered by the appellant, totaling 1511316012.17 yuan.
[judgment result] the Liaoning Provincial Higher People's court decided in the first instance to terminate the contract and relevant agreements, and the appellee returned the transfer fee and interest, and paid the appellant the discount of the project under construction according to the appraisal amount.
[reason for judgment] the court held that the appellee did breach the contract, and the purpose of the contract of the appellee could not be realized. Therefore, the court decided to terminate the contract and the supplementary agreement between the two parties, requiring the appellee to return the land transfer fee, return the interest of the transfer fee according to the loan interest rate of the people's Bank of China for the same period, and return all the land to the appellee, The appellee shall pay the appellant the discount of the project under construction according to the appraisal amount.
[legal basis] according to the provisions of Article 94 (3), (4), Article 97 and article 107 of the contract law of the people's Republic of China.
[lawyer's opinion] the amount of the subject matter involved in this case is 1.5 billion yuan. During the whole process of the case, from communication with the parties, risk warning, to the organization of a large amount of evidence, to the game between the original appellee and the original appellee at each key point in the trial, until the final result is satisfactory to the parties, the whole process of handling the case is worth learning from.