问答题
Natural Gas Company (Gas Company) and Yaowa Glass Company (Yaowa Company) entered into a supply contract. The major terms and conditions of the contract were that Gas Company would provide a minimum 4,000 
问答题
(a) explain the legal nature of the deposit under the contract law, and state whether a claim for a refund of twice the amount of the deposit should be supported by the court; (4 marks)
【正确答案】In accordance with Article 115 of the Contract Law, a deposit paid by one party to the other constitutes a guarantee to perform the contract. If the party who accepts the deposit fails to perform the contractual obligations, it shall return twice the amount of the deposit. In the present case Gas Company accepted the deposit paid by Yaowa Company but failed to provide the full quantity of natural gas as agreed in the contract. Therefore, Yaowa Company’s claim for the refund of twice the amount of the deposit shall be supported by the court.
【答案解析】
问答题
(b) state whether a claim requiring specific performance of contract by Gas Company should be supported by the court where the Yaowa Company has already requested a refund of twice the amount of the deposit. (6 marks)
【正确答案】In accordance with Article 107 of the Contract Law, the party who fails to discharge its contractual obligations shall be liable for the breach of contract in various forms, such as specific performance, adopting remedial measures or making compensation for losses, etc. In accordance with Article 110 of the Contract Law, the party who suffered losses due to the other party’s breach of non-monetary obligation shall be entitled to request for specific performance of the contract, unless under the circumstances are otherwise provided for by law. In this case Gas Company failed to discharge its obligation to
provide 4,000
【答案解析】