How to deal with contract breaches, low prices or cross-regional sales

Breach of contract means that one party fails to perform its contractual obligations or performs its contractual obligations inconsistently with the agreement. The non-defaulting party has the right to require the defaulting party to continue to perform, take remedial measures or compensate for losses and other breach of contract liabilities.

When operating and selling on e-commerce platforms, we often encounter problems with low prices and cross-regional sales. The actual low prices and cross-regional sales are all agents. When the brand signs an agreement with the agent, there is a contract agreement.

Faced with an agent's blatant violation of the contract, the brand will hold the agent responsible for breach of contract. However, why are low prices and cross-regional sales still prohibited?

To sum up, there are the following dilemmas:

1. Difficulty in obtaining evidence

Agents who breach the contract usually do not directly engage in breach of contract in their own name. Faced with the large number of low-price stores on the Internet, brands cannot obtain evidence of the source of goods in low-price stores. Therefore, because the defaulting dealer does not admit the breach of contract, it cannot be held accountable.

Solution:

File a civil lawsuit on the grounds of "trademark infringement" or "unfair competition."

During the process of responding to the lawsuit, the infringing store

1. For example, provide evidence that "the goods have legal origin"; thereby obtaining evidence that the dealer violated the contract.

2. If no evidence of legal source is provided, the use of trademarks in the sales process will constitute infringement and one shall bear infringement liability.

2. After obtaining the evidence, it is difficult to investigate

The agency contract has expired and both parties will not renew it. If the agent violates the agency contract after termination, both parties believe that the contract has expired and are no longer bound by the contract.

Solution:

After the agency contract expires, the agent must still abide by the contract stipulations, otherwise, he must still bear liability for breach of contract. After the brand owner obtains evidence of the agent's breach of contract, it can file a lawsuit with the People's Court to hold the agent responsible for breach of contract, so that the agent will no longer violate the contract unscrupulously.

friendly reminder:

In the contract, the relevant clauses must be clear and specific, practical and operable. It is important to avoid contracts that are rough and principled and difficult to understand and implement in actual operations, leading to the adverse consequences of being unable to hold the breaching party accountable due to unclear stipulations.