Research On Legal Issues Of Large Power Generation Equipment Procurement Contracts

Power generation equipment provides motive forces for human survival and economic development, manufacturing of large-scale power generation equipment refers to the manufacturing industry of high-end equipment, which can have impact on the economic and military safeties of the whole country. This type of equipment procurement contract owns a few legal characteristics of special legal nature, large contract amounts and huge warranty responsibility of the seller's defects. Because of the natures of clear amount, strong operability and timely and convenient solution of dispute between two parties, liquidated damages system has been widely used as the means of dispute resolution by civil subject in market transitions, and procurement contract of large power generation equipment is no exception.This type of contract generally stipulates the clauses of liquidated damages, especially maximum limit of the seller's quality reparations. But in China, the parties involved in the lawsuit (arbitration) can be allowed to apply to adjust the amount of liquidated damages by law; the two parties are likely to dispute on the payout of liquidated damages or damage awards. Especially when the prescribed liquidated damages are lower than the actual losses, the simple mechanical application of law can cause obvious unfairness. Through detail case analysis, this thesis proposes relevant suggestion about the application of judicial intervention system of liquidated damages in large power generation equipment procurement contract.This thesis has five parts. Part one refers to details of the case and the focus issue of the disputed parties. Part two mainly presents the characteristics of procurement contract of large power generation equipment, it shows the particularity of this type of contract referring liquidated damages set. Part three mainly discusses related regulations and theoretical basis of judicial invention system of liquidated damages, institute, condition and limit of judicial invention adjustment system of liquidated damages, and the question whether the liquidated damages and compensation for damages can be used in common. Part four discusses the application of judicial invention system of liquidated damages in large power generation equipment procurement contract. Part five related advice of judicial adjudication. The final conclusion, the article briefly summarized.