Brief Description of the Case

      2022 October 1, Yantai, a company (contract A) and Jing Mouquan (contract B), Wang Moufeng, Qi Moudong, Wang Moufei, Song Mou (contract C) signed a ‘cooperation agreement’ a copy of the following agreement: party B to buy feed from party A, party B purchased on credit from party B, party B should be paid within 90 days of the credit payment, the payment within this period of time from the date of the credit at a monthly interest rate of 1% interest to Party A. If repayment is not made in accordance with the stipulated period, in addition to the principal and interest on the outstanding amount, Party A shall pay liquidated damages (1% of the outstanding amount multiplied by the monthly time of the outstanding amount); the term of the contract shall be from 1 October 2022 to 30 September 2023. Agreement at the end of a company in yantai in party a seal, the defendant jingmouquan in party b signed, the other four defendants in party c signed, which wangmoufeng commitment in 700,000 yuan for jingmouquan owed payments to provide joint and several liability, qi mou dong, wang mou fei, song mou commitment in 500,000 yuan for the jingmouquan owed payments to provide joint and several liability, the guarantee period for the period of time are two years from the date of expiration of each payment of the feed.

       After the contract, yantai a company to defendant jingmouquan feed supply, on 18 May 2023, jingmouquan in the ‘customer arrears confirmation’ on the signature, confirmed that owed to yantai a company payment of 699447.28 yuan. Because the payment has not been paid, yantai a company therefore sued to the court, request: first, the court ordered the defendant jingmouquan to pay the payment of 699447.28 yuan, as well as interest and liquidated damages; second, ordered wangmoufeng, qi mou dong, song, wangmoufei on jingmouquan's payment obligation to assume joint and several liquidated liability.

Court Hearing 

    court hearing, identified the above signing of the cooperation agreement and Jing Mouquan in the ‘customer arrears confirmation’ signed but did not pay the situation is true, at the same time, identified, Wang Moufei, Song Mou in the signing of the ‘cooperation agreement’ when the Department of Yantai, a company's employees. 28 September 2023, Wang Moufei to their own wages and pork payments totaling 51,566.70 yuan to repay part of the principal amount of arrears for the Jing Mouquan The principal amount owed.

    Trial WangMouFei, SongMou proposed, they are in the process of duty in accordance with the unit of yantai a company in the ‘co-operation agreement’, is not the true meaning of expression, should not be liable.

      The court held that, wang moufei, song signed ‘cooperation agreement’ is a company of yantai employees, there is a labour relationship between the two sides, the two in yantai, under the management of a company, is in the performance of duties in accordance with the company's requirements in the agreement signed, is not the true meaning of its commitment to guarantee the invalidity of the act, the two should not be responsible for the guarantee. Accordingly, the court ruled that the other defendants are liable according to law, and rejected a company in yantai on wang moufei and song's request.

        After the judgement, the parties did not appeal, the case has come into effect.

Judges say

      folk have ‘black and white, can not be denied’ said, is to say that their own signature recognition of things, can not be denied denial, which is what we often say that the law of people to be responsible for their own behaviour. But this is not absolute, for effective legal action, this is undoubtedly right, at the same time, in order to protect the legitimate rights and interests of the parties, the law also stipulates the civil legal act is invalid in several cases, including ‘the actor and the relative with false intention to implement the civil legal act is invalid’ this situation.

       In this case, as the employer's Yantai company to take advantage of its own position, requiring its employees Wang Moufei, Song Mou signed the agreement to act as a guarantor, obviously to transfer the risk of future payment can not be recovered, is a kind of damage to the interests of the employees, contrary to the principle of honesty and credit behaviour. WangMouFei, SongMou in yantai a company under the labour management, in the performance of duties, both the lack of necessary legal knowledge, more dare not refuse the company's request, although it is signed, but is not the real intention, so its commitment to guarantee the act in line with the ‘false intention to implement the invalid civil legal act’ situation The two should not be liable for the guarantee. The court ruled for the unknown to become a guarantor of the employees to push away the employer to throw over the ‘pot’, to safeguard the legitimate rights and interests of employees.

     The judge reminded: as a unit of management, know that such behavior can not be protected by law, reduce the risk of the unit, so do not need to be superfluous; as a unit of employees, encounter such a situation can be justified refusal, if faced with the employer to make things difficult, should be based on labour laws and regulations to pursue their responsibilities.

This article is reprinted from WeChat public number ‘Shandong High Law’, with thanks!