Dispute between Sinotrans Jiuling Transport & Storage Co., Ltd and CPIC Shipping Insurance Operation Center over liability insurance contract

Abstract of judgment:

The general agreement in this case belongs to a framework of deal reached between two corporations over their business relations over a specific time. The agreement doesn't specify the parties affiliated to the involved corporations which are expected to sign insurance contracts over concrete transactions and leaves the specifics of insurance coverage to be determined. Therefore, the general agreement here is classified as a pre-contract in accordance with criteria used to determine the nature of other pre-agreements. The insurance and relevant application will be identified by the real agreement. However, parties to a case shall bear liability for the breach of the pre-contract concerned even when they haven't gone on to ink any real agreements. The clauses on resolving potential disputes in a pre-contract have their own lawful significance and functions and can be applied when any party breaches the pre-contract agreement, but only when specific clauses from the pre-contract are invoked by the real contract will they still be legally binding. The disputes between parties in a case shall be handled in accordance with the real contract when it comes into effect. The court will give its verdict in line with the real contract, instead of the pre-contract.