July 1, 2003Nike signed contract with Zheng which would expire in Dec.31, 2007; Aug.,2004Zheng requested more pay from Nike which was denied by Nike; Mar.9,2005Zheng wore Adidas shoes at a match in Japan;
Mar.18,2005Zheng asked to terminate Nike contract and started to attend Adidas activities; May 16,2006Zheng signed endorsement contract with Adidas;
May, 2006Nike sued Adidas but withdrawed due to no sufficient evidence in Beijing; Apr.15, 2008Nike Sports (China) Co Ltd accused Adidas AG and Zheng of harming its interests. Nike
also accused Zheng of breach of contract.
The Shanghai No. 1 Intermediate People's Court heard the case, but did not reach a
Summarized all the information which I search from the website, from the legal point of view, I think the focus will be the terminate notice in Mar. 18 from Zheng was valid or not. If it is valid, then no evidence can support Nike sue Adidas over Zheng violate the contract, if not, it is obvious Nike will win the case. But how to approve the termination is valid, we have to start analysis from their contract. A valid contract is an agreement that is binding and enforceable, which starts from offer, when an offer has been accepted, a binding agreement or contract is created, neither party can subsequently withdraw or cancel without consent of the other party assuming all the other elements of a contract are present. A valid agreement consists of mutual assent, consideration, capacity, invalidating conduct, subject matter legal and statutes of fraud satisfied, the critical point here is adequacy of the consideration, actually the contract was performed quite well from July,2003 to Aug.,2004, Zheng strictly followed Nike’s requirement- wearing Nike products as much as possible on public occasions, Nike also paid Zheng on time. With Zheng’s growing in the sports market, at least Zheng started feeling the consideration was not...