Case Background
Our firm (Plaintiff) accepted a risk agency engagement from a European industrial group (Defendant). Core terms:
- Full authority to handle debt recovery for a specific enforcement case.
- Contingency fee of 10% based on actual recovered funds (double fee claimable if overdue).
- Term Clause: Must be completed by end of March the following year.
Case Challenges
- Term Weapon: “Agency relationship automatically terminated upon term expiry.”
- Credit Severance: “Recovery result stemmed from government coordination, unrelated to law firm.”
- Procedural Barriers: “Law firm failed to submit work reports, constituting fundamental breach.”
Firm's Three-Phase Strategy
Legal Offensive:
- Activated core weapon Art. 96 of Contract Law: Termination requires active exercise of right to rescind.
- Secured continuous evidence chain: Power of Attorney not revoked + Court ruling listed firm as agent.
- Established “Completion Equals Performance” principle: Court ruling date marks substantive performance endpoint.
Evidence Deployment:
- Constructed Dual-Track Argument:
√ Government coordination doesn’t negate effectiveness of judicial agency.
√ Creditor self-help actions coexist with risk agency.
√ Unrevoked entrustment implies ongoing authorization. - Presented Key Ironclad Evidence: Enforcement ruling stated “Agent lawyer participated in settlement.”
Precise Argumentation:
- Full Victory on Main Claim: 100% of base fee (30,000 RMB) awarded.
- Strategic Sacrifice: Voluntarily waived double fee claim (to gain procedural initiative).
- Professional Demeanor: Accepted court’s ruling to split case acceptance fees.
Case Outcome
- Established Three Golden Rules for Foreign Entrustment:
Term Clause ≠ Automatic Termination Trigger.
Risk Agency Fee Independent of Administrative Processes.
Chinese Courts Possess Final Adjudicatory Power over Domestic Agency Contracts.
Core Firm Capabilities
- German-Style Term Trap Dismantling: Transforming time clauses into evidence of continuous performance.
- Sovereign Judicial Anchoring: Embedding Chinese judicial protection mechanisms in cross-border contracts.
- Fee Offense/Defense Rhythm Control: Segregating base claim from punitive demands.
- European Corporate Behavior Decoding: Anticipating “procedural justice” tactics for preemptive defense.
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