1. The seller failed to deliver the valid standard warehouse receipt within the stipulated delivery period.

2. The buyer fails to pay for the goods within the stipulated delivery period or fails to pay enough for the goods.

3. The goods delivered by the seller do not meet the prescribed standards.

For the buyer, delivery breach refers to non-payment or insufficient payment within the specified delivery period;

For the seller, delivery breach refers to the failure to deliver valid standard warehouse receipts and corresponding bills within the specified delivery period.

If the buyer defaults, the exchange will perform the contract instead of the buyer and sell the received goods in the market by auction. The buyer who breaches the contract should not only bear all losses and expenses, but also pay high liquidated damages. Similarly, if the seller defaults, the exchange will purchase qualified physical objects in the market through expropriation. The seller who breaches the contract should not only bear all losses and expenses, but also pay high liquidated damages.

(1) Determination of delivery breach? The buyer and seller of a futures contract commit one of the following acts, which constitutes a delivery breach:

1. The seller failed to deliver the valid standard warehouse receipt within the stipulated delivery period;

2. The buyer fails to pay the payment within the stipulated delivery period or the payment is insufficient.

A) The goods delivered by the seller do not meet the specified standards.

(II) Handling of Default in Delivery If a member defaults in the physical delivery of a futures contract, the exchange will perform the contract first. The Exchange may handle the breach of contract through subscription, auction, etc., and the defaulting member shall bear the losses and expenses caused thereby. The Exchange may also impose penalties on defaulting members, such as paying liquidated damages and compensation.

(1) Determination of delivery breach? The buyer and seller of a futures contract commit one of the following acts, which constitutes a delivery breach:

1. The seller failed to deliver the valid standard warehouse receipt within the stipulated delivery period;

2. The buyer fails to pay the payment within the stipulated delivery period or the payment is insufficient.

A) The goods delivered by the seller do not meet the specified standards.

(II) Handling of Default in Delivery If a member defaults in the physical delivery of a futures contract, the exchange will perform the contract first. The Exchange may handle the breach of contract through subscription, auction, etc., and the defaulting member shall bear the losses and expenses caused thereby. The Exchange may also impose penalties on defaulting members, such as paying liquidated damages and compensation.