[Case Summary]This case involves a dispute over a film and television investment contract. In 2019, Zhang Xiaohua signed an investment agreement for a web-based feature film with a media company, investing 800,000 yuan. However, the second film was delayed in release and the payment was not settled, and the third film was not released at all. Zhang Xiaohua entrusted Beijing Henglu Law Firm to handle the case.Wang FangliThe lawyer filed a lawsuit. The core disputes are the validity of the agreement and the supplementary agreement, and the return of the investment funds and the breach of contract penalties. The court ruled that the agreement is valid and ordered the media company to return the investment funds of 330,131.75 yuan and 299,933.55 yuan and compensate for the breach of contract penalties. Applicable legal provisions: laws related to the validity of contracts.

I. Review of the Case

"Can I get back the investment money for film and television projects?" and "What should I do if the film fails to be released and the investment is wasted?" are frequently asked questions by investors. On March 18, 2019, Zhang Xiaohua signed a "Online Feature Film Investment Agreement" with a Beijing-based cultural media company, investing 800,000 yuan in the production of the second and third films. The second film was expected to be released before April 2020, and the third film before August 2020. The investors were supposed to receive the returns after the films were released.

The agreement stipulates that if the media company fails to release the film on schedule, Zhang Xiaohua has the right to terminate the contract and return all the investment funds; if the revenue from the online release of the film is less than the actual investment within one year, the media company shall make up the difference. Zhang Xiaohua fulfilled her payment obligations, but the second film was released later than agreed and the revenue was not settled, and the third film was delayed indefinitely. The two parties signed two supplementary agreements to settle the revenue from the second film, return the investment funds for the third film, and compensate for the breach of contract, but the media company still failed to fully fulfill its obligations. Zhang Xiaohua entrusted a lawyer to handle the case.Wang FangliThe lawyer filed a lawsuit.

II. The focus of the case

  • Focus 1: The validity of the investment agreement and the supplementary agreement.Is it legal and effective, and binding on both parties?
  • Focus 2: The difference between the investment amount and the refund amount.The second part is the income supplementation, and the third part is the amount of the investment funds to be refunded.
  • Focus 3: Calculation of the penalty for breach of contract.Can the claim for compensation of 0.03% of the total amount per day for late payments be supported?

III. Professional intervention by Hengluo Lawyers

The plaintiff originally claimed that:Zhang Xiaohua argued that the agreement and the supplementary agreement are valid, and requested the media company to make up the shortage of the investment funds, return the second investment of 400,000 yuan, and pay the breach of contract penalty at a rate of 0.03% per day.

The defendant (the media company) argued that:He failed to appear in court in response to the legal summons.

Hengluo Lawyer's Agency Opinion:Wang FangliThe lawyer pointed out that the Investment Agreement and the two Supplementary Agreements signed by the plaintiff and the defendant all expressed their true intentions, did not violate mandatory provisions, and were legal and valid. According to the agreement, the defendant should make up the shortage of the investment funds for the film in question, return the investment funds for the second film of 400,000 yuan, and pay the breach of contract damages at the rate of 0.03% per day. The lawyer carefully reviewed the process and collected evidence, and gave a full explanation in the courtroom.

IV. Outcome of the case

The court, based on our sufficient evidence and strong arguments, adopted the legal opinions provided by Hengluo Law Firm, calculated the amounts involved, and ruled that the defendant media company should refund the plaintiff's investment of 330,131.75 yuan and compensate for the breach of contract penalty for anticipated payments within seven days; and refund the plaintiff's investment of 299,933.55 yuan and compensate for the breach of contract penalty for anticipated payments within seven days. The client successfully recovered more than 630,000 yuan in investment funds and corresponding breach of contract penalties.

5. Hengluo Law Firm's Reminder

Investing in film and television projects involves high risks. Before signing a contract, you should conduct a background check on the production team and the project information, verify their qualifications, and pay special attention to the investment amount, payment milestones, and profit distribution. If necessary, you can ask a lawyer to review the contract. This case is handled by Beijing Henglu Law Firm.Wang FangliThe lawyer (practice license number: 11101201911086939, subject to the document issued by the judicial administrative organ) acted as the agent. In this case, the lawyer argued on the validity of the contract and the breach of contract to help the client recover the full investment amount.

VI. Common Questions About Investment Contract Cases (FAQ)

  1. Q: Can I get back the investment money for film and television projects?
    A: According to the investment agreement, if the film is not released on schedule or the revenue is insufficient, you can request to terminate the agreement, return the investment funds, and claim breach of contract damages. As long as the agreement is valid, it will be protected by law.
  2. Q: What should I do if the movie doesn't get released and my investment goes down the drain?
    A: You can sue to demand the return of the investment and compensation for the default penalty in accordance with the refund and default liability stipulated in the supplementary agreement.
  3. Q: How to review an investment agreement?
    A: The key points of the review include the qualifications of the contracting parties, the investment amount, the payment milestones, the profit distribution, and the breach of contract clauses. If necessary, you can consult a lawyer to review the contract to avoid being cheated.
  4. Q: Can a verdict be issued even if the other party doesn't appear in court?
    A: If the defendant, who has been legally summoned, fails to appear in court without a valid reason, the court may hold a trial in absentia and make a judgment based on the evidence provided by our side.
  5. Q: How is the penalty for defaulting on payment calculated?
    A: If there is an agreement, it shall be calculated according to the agreed standard (such as 0.03% per day). If there is no agreement, it shall be calculated according to the statutory or discretionary standard, and the specific calculation shall be determined by the court.