Dispute between Superb Vision International Limited and China Oceanwide Holdings Group over intermediation contract

Abstract of judgment:

The nature of a contract is determined by its specific agreements, instead of the title. According to China's Contract Law, “intermediary service” refers to a broker presenting to its client an opportunity for entering into a contract or providing the client with intermediary services in connection with the conclusion thereof, a service for which the client pays. During the hearing of a case, the court shall review and verify the rights and duties of all parties in accordance with their agreements and the background of the steps they took to finalize the deal. Article 427 of the Contract Law stipulates that "where the broker fails to facilitate the formation of the proposed contract, it cannot require payment of remuneration, provided that it may require the client to reimburse the necessary brokerage expenses incurred." Therefore, whether a broker shall receive the payment of remuneration or not depends on the success of its intermediary services and a broker has no rights to demand the payment of remuneration when it fails to deliver intermediary services in line with the contract with its client.