The plaintiff Sai Tao Jin Company claimed that it signed the Bicycle Operation Service Agreement with the defendant Harrow Bicycle Company on February 2, 20 17, stipulating that the plaintiff would be responsible for the vehicle operation and market work in Xiangyin County, Hunan Province, with a contract term of 1 year. Due to the combination of defendant Harrow's bicycles, the plaintiff could not operate normally. The original defendant and the defendant agreed that Harrow Bicycle should pay the plaintiff a one-time cancellation fee of 350,000 yuan before 201815.
Defendant Shanghai Zheng Jun Network Technology Co., Ltd. argued that the bicycle operation service agreement it signed with the defendant stipulated that "if the average bicycle utilization rate of Party B is lower than 1.5 times/day for three consecutive months during the operation period, Party A has the right to unilaterally terminate the operation service contract." Three months after the vehicles were put on the market, the company visited Xiangyin County for many times, and found that most of the vehicles were damaged and parked in the warehouse of Saitaojin Company, with a turnover rate lower than that agreed by both parties. According to the agreement, the management right can be recovered, but Saitaojin insisted on operating on its own and seized the vehicle.
After that, both parties agreed that Harrow Bicycle would pay a one-time penalty of RMB 350,000 before 201815. However, Harrow Bicycle paid all the money to Sai Tao Jin Company on the morning of 201816, and it was overdue.
Sai Tao Jin Company believes that Harrow Company's overdue payment of bicycle money 1 day is a serious breach of contract, and requests the court to order the payment of overdue liquidated damages 105000 yuan, as well as legal fees and agency fees. Harrow Bicycle believes that the late payment of 1 day is due to the complicated payment process of the company, not intentional breach of contract.
The trial of Xiangyin County People's Court pointed out that the defendant Shanghai Zheng Jun Company failed to pay the plaintiff 350,000 yuan before 201815 agreed by both parties, which constituted a breach of contract, and supported the plaintiff's claim that the defendant should pay the liquidated damages of overdue contract105,000 yuan.
Subsequently, Shanghai Zheng Jun Company appealed to Yueyang Intermediate People's Court. In July this year, the second trial still found that Harrow Bicycle Company's overdue payment was a breach of contract, but the penalty of 105000 days overdue violated the principle of fairness. The second trial found that the fine was 15000 yuan and the lawyer's fee was 7000 yuan.
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