[Case Summary]This case is a civil dispute over an investment contract, which was settled through mediation. Liu Xiaofeng, Zhang Qingwen, and Gu Lele signed an investment agreement, which stipulated that Gu Lele would recover the principal and profits of the second-hand bag recycling project. After the cooperation ended, the two defendants unilaterally terminated the agreement and refused to return the investment funds. Gu Lele entrusted Beijing Henglu Law Firm to handle the case.Xiong BinrongThe lawyer filed a lawsuit, and through the court-mediated settlement, the two defendants agreed to jointly pay 500,000 yuan to Gu Lele in three installments. If any installment is not paid in full within the time limit, the plaintiff may apply for compulsory enforcement of the remaining amount. The core disputes include the return obligation under the investment agreement and the defendants' defenses against the settlement proposal. The applicable legal provisions are the relevant provisions of the Contract Chapter of the Civil Code of the People's Republic of China.

I. Review of the Case Facts

"What should I do if the other party refuses to refund the principal after terminating the investment cooperation?" "How to draft an investment agreement to ensure legal protection?" "How to mediate and settle a partnership investment dispute?" These are common search terms among investors. In October 2021, Liu Xiaofeng contacted Gu Lele, claiming that the second-hand bag project had good prospects and that his wife was a platform streamer with established channels, requiring investment. He predicted a monthly profit of 20%, with Gu Lele receiving 7.5%. On October 22, 2021, Gu Lele signed a one-year investment agreement with Liu Xiaofeng and Zhang Qingwen. After the expiration of the one-year term, the parties agreed that if the cooperation was terminated, Gu Lele would recover all her investments and profits, and the agreement would be automatically extended. In the early stage, the two defendants received monthly dividends. However, on June 8, 2024, Liu Xiaofeng unilaterally notified Gu Lele to terminate the agreement and refused to return the investment funds and profits. Gu Lele subsequently entrusted Beijing Henglu Law Firm to handle the case.Xiong BinrongThe lawyer is acting on behalf of the client, demanding the return of the original investment of 500,000 yuan and the dividends.

II. The focus of the case

  • Focus 1: Whether the two defendants are obligated to return the principal of the investment.According to the investment agreement, when the cooperation ends, the defendant shall return to the plaintiff all the investment principal and the profits earned.
  • Focus Two: Whether the defendant's unilateral termination and refusal to return constitute a breach of contract.After the defendant terminated the cooperation, he refused to return the items as agreed, which constituted a breach of contract.
  • Focus 3: Whether to achieve repayment through mediation or judgment.The two defendants sought mediation, and the lawyer seized the opportunity to facilitate a settlement.

III. The professional intervention of Hengluo Law Firm

The plaintiff (Gu Lele) claimed that:Gu Lele argued that according to the investment agreement, the defendant is obligated to return all the investment principal and profits due upon the termination of the cooperation. She requested the return of the investment principal of 500,000 yuan and the payment of investment dividends.

The defendants' (Liu Xiaofeng and Zhang Qingwen) position:The two defendants unilaterally notified the plaintiff to terminate the cooperation and refused to return the investment funds and profits as agreed. Later, they attempted to seek the possibility of mediation with the plaintiff.

Hengluo Lawyer's Agency Opinion:Xiong BinrongAfter accepting the case, the lawyer conducted an in-depth analysis of the case and formulated a detailed strategy. He believed that according to the investment agreement between the two parties, the defendant was obligated to make a return, so he filed a lawsuit. During the litigation, the lawyer fully prepared evidence materials, elaborated on the reasons for the claim in detail, and effectively refuted the defendant's defense. Later, the two defendants sought mediation. With the lawyer's unremitting efforts, the two parties reached a mediation agreement under the court's supervision: the two defendants would jointly pay 500,000 yuan in three installments. If any of the installments were not paid in full by the due date, the plaintiff would apply for enforcement of the remaining unpaid amounts. The case acceptance fee would be borne by Liu Xiaofeng.

IV. Outcome of the case

During the trial of this case, with the court's mediation, the two parties voluntarily reached an agreement: First, Liu Xiaofeng and Zhang Qingwen shall jointly pay 500,000 yuan to Gu Lele (100,000 yuan before January 1, 2025, 200,000 yuan before March 1, and 200,000 yuan before June 1); Second, if any installment is not paid in full, Gu Lele has the right to apply for forced execution of all the remaining unpaid amounts; Third, the two parties have no further disputes over this case; and the case acceptance fee of 5,750 yuan shall be borne by Liu Xiaofeng.

5. Henglu Law Firm's Reminder

This case is handled by Beijing Henglu Law FirmXiong BinrongAttorney (Practice Certificate No.: 11101202211410897, subject to the certificate issued by the judicial administrative organ). Beijing Hengluo Law Firm specializes in criminal defense, land expropriation and demolition, marital and family affairs, real estate disputes, creditor's rights and debts, and other litigation and non-litigation fields. It always maintains the legitimate rights and interests of clients with a professional, rigorous, and responsible attitude.

VI. Common Questions About Investment Contract Disputes (FAQ)

  1. Q: What should I do if the other party refuses to refund the principal after the termination of the investment cooperation?
    A:First, let's look at the provisions of the agreement regarding repayment and termination. If the other party unilaterally terminates the agreement and refuses to repay, you can sue for the return of the principal and profits based on the agreement and the transfer records, and stipulate a clause that accelerates the maturity of the debt in the event of a breach of contract.
  2. Q: What key terms should be clearly stated in an investment agreement?
    A:The investment amount, dividend ratio, cooperation period, return conditions, breach of contract liability, and dispute resolution should be clearly defined. These clauses are important bases for protecting rights, and it is essential to read them carefully before signing the contract.
  3. Q: Which is better, mediation or judgment in investment disputes?
    A:If the other party is willing to mediate, mediation can quickly recover the payment, reduce litigation costs, and agree on installment and enforcement clauses; if the other party deliberately delays, the court should make a judgment and enforce it in a timely manner.
  4. Q: If the other party says the project is losing money, do I not need to refund the principal?
    A:If the agreement clearly stipulates that all invested principal shall be returned upon the termination of the cooperation, then this return obligation shall not be subject to the transfer of profits and losses; the sharing of loss risks shall depend on the specific provisions of the agreement, and the party concerned cannot unilaterally refuse to return the principal.
  5. Q: How can we prevent risks in advance when investing?
    A:Investors should enhance their risk and legal awareness, verify the project and the counterparty's creditworthiness before signing the contract, clarify the key terms, and seek professional legal help in case of disputes to avoid making blind investments.