Analysis Of A Lease Contract Dispute Between Chen And Fuming

In recent years, in the field of construction, there are project affliation, illegalsubcontracting and other irregular operating behaviors. The actual constructionworkers, typically such as project manager, often sign contracts with regard topurchasing construction materials, leasing, loan, or employment affiliated with or inthe name of contractors which results in a large number of civil disputes. The case foranalysis herein is a very typical case. Red Star subcontracted main parts of its newbuilding project to Chen Guoquan (hereinafter referred to as “Chen”), the actualconstruction worker. Chen, on behalf of the department in charge of operating theconstruction of the new building (hereinafter referred to as New Building OperationDepartment), entered into a contract for renting the construction equipments withFuMing Corporation (hereinafter referred to as “FuMing”), which has duly performedthe contract. However, Chen was absent. FuMing required New Building OperationDepartment to assume contractual responsibility. New Building Operation Departmentdenied Chen’s claim with an argument that Chen was lack of authorization for signingthe contract, which therefore led to a dispute between New Building OperationDepartment and FuMing. In the case’s proceedings, there exists a lot of divergencebetween the plaintiff and the defendant in relation to the nature of Chen’s behavior.The standard of determining the behavior of Chen Guoquan as act of official duty, actof apparent agency or personal behavior has become the focus of the case.The definition of act of official duty shall involve the factor of contractual laborrelationship or substantial labor relationship. Therefore Chen’s behavior cannot bedeemed as act of official duty. Act of apparent agency can only be affirmed with thesatisfaction of four elements, which also disappeared in this case. As a result, it’s heldChen was not acting as an apparent agency.Due to lack of feasibility in legislation relating to apparent agency, there’s nounified standard for the judge to hear such type of case. With the increase ratio ofcomplex civil disputes involved with apparent agency, it’s necessary to further refinethe feasibility of apparent agency regulatory system, set up the determinationmechanism for definition of apparent agency, integrate the standard, and regulate thedetermination behaviors. Meanwhile, as for the construction enterprises andcounterparties involved, they also shall strengthen management and internal reviewsystem for the benefits of ultimately avoidance of actual risks.