NINGBO ORIENTAL SHIPBUILDING CO LTD AND ANOTHER v HANGTAI INDUSTRY (HONG KONG) LTD

[2016] 6 CMCLR 18

SUPREME PEOPLE'S COURT OF CHINA(CIVIL RULING)

Before Presiding Judge Shumei,Deputy Judge Fang,Deputy Judge Xiaoqiang,Court Clerk Di

Ship sales contract dispute – Builder to build and sell oil tanker ship to buyer – Ship sales contract allowing buyer to refuse to accept the vessel, and seller to refund price with damages, if actual oil tank capacity more than 2 per cent lower than capacity as designed – Actual capacity lower than 13.67 per cent – Buyer accepted the vessel – Whether buyer can still claim for liquidated damages – Whether such liquidated damages excessive.