Dear Lawery He,

I need your advice on the following Chinese case:

Party A entered into negotiations with Party B to use their facilities for some big exhibitions. Party A assured Party B that it will definitely use their faciliites. Based on this verbal assurance, Party B started investing on refurbishing and expanding their facilities. Party B entered into a contract with Party C to expand their facilities.

After two months, management changed in Party A's company. The new CEO tells Party B that they have cancelled their exhibition plans and will not use their facilities. Can Party B sue Party A based on their verbal assurance? What article of contract law applies here? If Party B cannot sue Party A, can they at least sue the former CEO who gave verbal assurances?

Despite Party A's cancellation of using the facilites, Party B proceeded with the contract with Party C to expand their facilities. Party C started the work but stopped after a while because of wet weather. The work is getting delayed because of wet weather. Party C is demanding extra money from Party B for the delay. Party C also has to do some extra work because they found some rock underneath the surface of the land. For this also they are asking for extra money.

Nothing was mentioned in the contract about the dealy due to wet weather or the condition of land. The contract was drafted by Party B. Now Party C is saying that unless they get the extra money, they will not start work. They are also saying that since the contract was drafted by Party B, it was too difficult for them to understand when they signed it. What is the stand of both Party B & C? Who is right here or who can sue who?

Your advice would be highly appreciated.

Best regards,

Lydia