Case Analysis Of Chen Mouyan V.chen Mouzhong On Divorce Agreement

Nowadays with the development of market economy, issues caused byprohibition of business strife emerge endlessly. What’s more, due to the uncertainty ofthe Subjects, defectiveness of laws and regulations, there is still not a sound standardavailable for us to deal with such kind of cases. For instance, the provisions of theprohibition of business strife only happen in cases involving the employees andemployed, or among workers. But in reality, the application range is much more wider;what’s more, there are no exact provision for subject of responsibility, offeree,deadline and range. All these, in some degree, affect authority of the law,In this case,the couple divided up11companies possessed by them jointly because of divorce.And they signed the provisions of the prohibition of business strife in divorceagreement which declares three production companies belonged to the wife side, andthe rest sales-companies belonged to the other part. While the husband’s side violatedrelevant regulations that he became the defendant of this case, and decisions of thiscase made by Court of First Instance and Second Instance are controversial.Accordingto the analysis, the defendant constituted the liability for the breach of contract, andthe judging standards of penal sum should be based on the business value.Generally,Non-compete Clause takes employers and employees as its objects, protecting theassignees. However, this case is special by itself. It aimed at both parties of thedivorce case, the part needs to be protected legally is the plaintiff who is thetransferor. Therefore, the controversy of this case can not be solved according to theLabor Law.Viewed from the nature of this case, the Non-compete clause signed indivorce agreement is similar to that of the business transfer among enterprises, so thispaper conducted the study and analysis mainly from the assignees’obligations inNon-compete clause during business transfer. That is to say, the defendants shouldtake what kinds of responsibilities under the condition of breach of contract, and howhe took it. The author finally makes the conclusion that the theory of business valueshould function as the judging standards of penal sum by analyzing relevant standardsavailable to the penal sum from the judgments given by the Courts of First and SecondInstances.