The Cotton Incident: Does the celebrity have to bear huge compensation when it terminates the contract and insults the Chinese brand?

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Recently, the Xinjiang cotton incident has aroused everyone's patriotic enthusiasm, and the Chinese people are also very angry because of the insulting behavior of these Western brands. H&M, Nike, Adidas , Uniqlo, GAP and many other brands issued a statement banning Xinjiang cotton on the grounds that Xinjiang’s cotton industry involves "labor force."


boycotts insulting the Chinese brand, the star unilaterally terminates the contract!


​​Here foreign brands spread rumors, and on the other side, the patriotic artists who are cooperating with endorsements have also terminated their contracts. First, the artist Huang Xuan and emphasized his position and declared that he has no cooperative relationship with H&M. Then Song Qian and Hu Bing also announced unilateral termination of cooperation. When H&M has been countered by the official media, well-known western brands such as Nike and Adidas have to jump out to challenge everyone's tolerance. Soon, the spokespersons of these brands Yang Mi, Wang Yibo , Tan Songyun, Yi Yang Qianxi and others also joined the team.


The Cotton Incident: Does the celebrity have to bear huge compensation when it terminates the contract and insults the Chinese brand? - Lujuba


​​star stood up for the first time in support of Xinjiang Cotton and resisted the insult to China. Many people were moved by their attitude, but there were also a lot of people sweating secretly for them. Generally speaking, unilateral termination of contract faces high financial compensation. From the perspective of the spirit of contract, the future commercial endorsement of celebrities will be more or less affected.


The legal issue of unilateral termination of contract


​​Actually, there is no uniform standard for the specific analysis on the issue of breach of contract compensation. If the contract between the celebrity and the brand party has an agreement involving political stance and meets the conditions for the intended termination of the contract, then the celebrity does not need to pay liquidated damages.


​​However, some companies give a formatted text, and the formatted text does not contain the above agreed terms. This situation is unfavorable for celebrities. However, according to Article 563 of the " Civil Code ", force majeure factors and other circumstances stipulated by the law can also be used as legitimate reasons for rescission of the contract.


The Cotton Incident: Does the celebrity have to bear huge compensation when it terminates the contract and insults the Chinese brand? - Lujuba


​​Anyway, each of us Chinese should take an active confrontational attitude. When it comes to their own interests, these celebrities can stand up and believe that "national interests are above all else", and ordinary people like us should also unite to resist these brands. Zhifajun also believes that in this case, if the celebrity goes to court because of the termination of the contract, the Chinese judge will also stand on the side of justice.

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