Cases for week 3

1. Defenses to nonperformance
(1) A and B signed a contract which stipulated that A shall deliver
100 tons of goods to B and the payment is RMB 100 000. A only
delivered 80 tons of goods and require B to pay RMB 100 000.
Question:
Was B entitled to refuse to pay RMB 100 000?
Answer:
No, he was entitled to refused to pay RMB 20 000.
If A delivered 100 tons of goods without the related materials
Question:
Was B entitled to refuse to pay RMB 100 000?
Answer:
No, he shall pay RMB 100 000.
(2) Co. A and Co. B entered into a contract of sale of cotton. They
agreed that: Co. A shall offer Co. B 100t cotton (18,300 yuan/t) and
send them to Co. B on January 20th, and Co. B shall prepay 500,000
yuan on the contract signing day and 1,000,000 after checking. Co.
B delivered the prepayment of 500,000 yuan and Co. A sent the
cotton to Co. B. But B failed to raise 1,000 000 yuan. So Co. A drew
back the cargoes.
Question:
Who breached the contract?
(3) On October 4th, A signed a loan contract with B. They agreed
that: B shall lend 150,000 yuan to A (50,000 yuan on October 4th,
50,000 yuan on November 4th, and 50,000 yuan on December 4th).
The lending period was 3 years, counting from October 4th. On
November 8th, A brought a lawsuit to the court against his wife on

divorce. B worried that A couldn't pay off the debt after divorce. So
he stopped borrowing to A on December 4th, and required A to pay
back the money ahead of the due date.
Question:
Who breached the contract?
(4) A and B signed a house leasing contract, agreeing that: A shall
lease his house to B and the price is 40 000 yuan per year, which
shall be paid off before the end of January every year. The period is
five year. The lessor should deliver the house over to the lessee in
10 days after he paid the rent of first year. After the agreement, A
immediately emptied the house, but B didnt pay the rent.
Question:
Was A entitled to refuse to deliver the house?
2. Right to revocation
(1) A owed B RMB 10 000 and hadnt repaid till the creditors right
was matured. A had no other property. But C owed A RMB 20 000
and the creditors right was also matured. One day, A informed C
that he was exempted from the debt. C didnt know the debt
between A and B.
Question:
Did B have the right of revocation?
Answer:
Yes.
(2) A owed B RMB 10 000 and hadnt repaid till the creditors right
was matured. A had no property but a car, evaluated RMB 50 000.
One day, he donated the car to C. C didnt know the debt between A
and B.
Question:
Did B have the right of revocation?
Answer:

Yes.
(3) A owed B RMB 10 000 and hadnt repaid till the creditors right
was matured. A had no property but a car, evaluated RMB 50 000.
One day, he sold the car to C at the price of RMB 9 000. C didnt
know the debt between A and B.
Question:
Did B have the right of revocation?
Answer:
No.
3. Right to subrogation
(1) A owed B RMB 10 000 and hadnt repaid till the creditors right
was matured. A had no other property. C hadnt pay salary, about
RMB 20 000, to A and the creditors right was also matured. But A
was indolent in exercising his creditors right.
Question:
Did B have the right of subrogation?
Answer:
No.
(2) A owed B RMB 10 000 and hadnt repaid till the creditors right
was matured. A had no other property. But C owed A RMB 20 000
and the creditors right was also matured. A was asking C to pay
back money all the time. But A never brought a lawsuit to the court
or arbitration committee against C.
Question:
Did B have the right of subrogation?
Answer:
Yes.
(3) A owed B RMB 10 000 and hadnt repaid till the creditors right
was matured. A had no other property. But C owed A the payment of

RMB 20 000 and the creditors right was also matured. B brought a
lawsuit to the court against C for RMB 10 000. C defense that A only
delivered a quarter of the goods.
Question:
How much shall C pay to B?
Answer:
RMB 5 000