In the case of dispute over contract of sale and purchase of ship between Yu
X as the plaintiff and Dalian Cihang Yacht Co., Ltd. (hereinafter referred to as
Cihang Company) as the defendant and Wehai JinyunYacht Co., Ltd. (hereinafter
referred to as Jinyun Company) as the defendant32, Yu X ordered a new yacht
from the seller, Cihang Company. As agreed, Cihang Company was responsible
for handling the ship inspection procedures of the yacht. Later, Cihang Company
delivered a yacht and ship inspection certificates of the same model built by the
manufacturer Jinyun Company. In the process of negotiating and handling the
case of a bottom break of the yacht, Yu X discovered that there were discrepancies
in the ship inspection procedures on where the yacht left the factory and where
it was naturalized. Yu X believed that Cihang Company and Jinyun Company
had sales fraud, and requested to rescind the yacht sales contract, and requested
Cihang Company and Jinyun Company to jointly refund RMB 180,000 of the
purchase price and jointly compensate for the loss of RMB 360,000. The Court
held that, Cihang Company delivered an unqualified yacht as the subject of the
sales contract, and failed to prove that he had ordered a new yacht from Jinyun
Company, paid the price, transported the new yacht to Dalian or done the related
things. It was presumed that Cihang Company intentionally concealed the true
status of the yacht when he entered into the contract, which constituted a fraud.
The design and purpose of this yacht were for private use, which was within the
scope of commodities specified in Article 2 of the Law of the People’s Republic of
China on the Protection of Consumers’ Rights and Interests. According to the Law,
the Court ruled to rescind the yacht sales contract signed between Yu X and Cihang
Company, ordered Cihang Company to refund the purchase price of the yacht to
Yu X and bear punitive compensation liability, and rejected Yu X’s claim against
Jinyun Company.