To enhance the role of commercial circuit trials in supporting grassroots governance, better serve the development of regional industries, and optimize a law-based business environment, Jiading Court has officially launched the "Jiading Action for Commercial Balance • One Park, One Circuit" Circuit Trial Month series. This initiative integrates "circuit trials + targeted legal education," extending judicial services to the frontlines of industrial parks and establishing a governance framework of "hearing one case, educating one group, and standardizing one industry."

Recently, Judge Zhao Yuci of Jiading Court's Commercial Division conducted a circuit trial at the Beihongqiao Circuit Trial (Mediation) Workstation for a sales contract dispute involving the statute of limitations. Dai Ruifeng, Deputy to the Jiading District People's Congress, Gu Yiwen of the Jiangqiao Town People's Congress Office, Gu Zhengyan, Enterprise Representative and Vice President of the Jiading District General Chamber of Commerce, Wang Qiang, Committee Member of the Jiang'an Community Residents' Committee, as well as staff members from neighborhood centers and communities in Nanxiang and several enterprise representatives attended the hearing.

At 9:30 a.m., the gavel sounded, and the hearing officially commenced. On March 5, 2016, the plaintiff and the defendant executed a Sanitary Ware Faucet Sales Contract, under which the defendant agreed to purchase a batch of sanitary ware faucets from the plaintiff. The plaintiff fulfilled all supply obligations as agreed in the contract. After settlement, the defendant paid 95% of the purchase price, leaving the remaining 5% as a quality assurance payment. Thereafter, the defendant never paid the quality assurance payment. During the litigation, the defendant acknowledged the outstanding amount but raised a defense on the ground of "exceeding the statute of limitations."

Judge Zhao Yuci organized the court investigation and arguments in an orderly manner around the disputed issues concerning the performance of the contractual obligations, the agreed contents of the quality assurance payment, and whether the statute of limitations had been interrupted. The hearing proceeded in a standardized and orderly fashion, with clearly defined points of contention, providing the attendees with a clear outline of the core analytical approach to commercial contract disputes. Focusing closely on the two major disputed issues of "handling situations where contractual terms are unclear" and "whether the statute of limitations was interrupted," the court conducted an investigation by examining evidence such as the execution of the contract between the parties and their WeChat message records, and openly disclosed its preliminary views on legal application while organizing court arguments.

After the hearing concluded, Judge Zhao Yuci, drawing on this case and common legal issues related to the statute of limitations, delivered an accessible and in-depth legal education session entitled "The Rights and Wrongs of the Statute of Limitations" for the attendees.

She first provided a detailed legal interpretation based on the legal issues involved in the case, focusing primarily on the starting point of the limitation period, the assertion of rights for claims under contracts with unclear terms, and the protection period of the limitation period. At the same time, she explained the basic legal knowledge concerning the statute of limitations relating to the disputed issues raised by the parties in the case, dissected the matter thoroughly, and analyzed practical details regarding the collection of outstanding payments.

With respect to issues concerning the statute of limitations commonly encountered in commercial cases, Judge Zhao Yuci provided a step-by-step explanation of various legal provisions that are familiar to the general public yet may not be known to creditors and offered three "must do" recommendations for enterprises in the collection and management of accounts receivable, thereby indicating the legal avenues for enterprises to pursue remedies for outstanding payments.

Activity Commentary

Dai Ruifeng, Representative of the Jiading District People's Congress

This circuit trial and legal education activity addressed the pulse of the economy and provided timely assistance to enterprises facing difficulties with payment cycles. Although the statute of limitations is a very simple legal issue, many details resemble the story of blind men feeling the elephant for those without legal training, leaving them unaware of the full picture. Through this hearing, as well as the post-hearing case explanation and legal education session, Judge Zhao enabled the attendees to gain a comprehensive understanding of the statute of limitations in an accessible and understandable manner, and to become more compliant and effective in the future practice of recovering accounts receivable.

Gu Yiwen, from the People's Congress Office of Jiangqiao Town

This circuit trial and legal education activity was like a "timely rainfall," providing precise support to enterprises currently experiencing difficulties with payment cycles. Using "the statute of limitations" as the point of entry, the concept itself is fundamental, yet its details often remain a blind spot for enterprise personnel, and certain aspects may be overlooked in practice. Fortunately, through vivid examples from the hearing and a thorough analysis of legal principles, Judge Zhao dispelled confusion and enabled us to gain clear understanding, which holds important instructive value for enterprises in collecting outstanding payments and managing existing credit claims.