[Case Summary]This case involves a dispute over the payment of the purchase price of a sales contract. The plaintiff supplied crushed stone and manufactured sand to the defendant's LJ3 project department of the LiXXX Expressway, with a total supply value of 3,793,294.95 yuan. However, the defendant only paid 2.34 million yuan, leaving an outstanding balance of 1,453,294.95 yuan unpaid. The parties have entrusted the Beijing Henglu Law Firm to handle the case.Li YonghuiThe lawyer represented the client in the lawsuit. The lawyer conducted the representation based on the sales contract relationship, invoices, and breach of contract clauses. In the end, the court ruled that the defendant should pay the purchase price of 1,453,294.95 yuan and the overdue payment interest of 43,598.85 yuan, totaling 1,496,893.8 yuan. The court fees shall be borne by the defendant. The core dispute is whether the defendant's refusal to pay the overdue interest on the grounds that the owner's funding was not in place is valid. Applicable legal provisions: Article 509 of the Civil Code of the People's Republic of China.

I. Review of the case

In the field of construction projects and building materials supply, many suppliers are most concerned about "what to do if the payment cannot be recovered", "can I claim interest when suing to recover the payment", and "how long is the statute of limitations for suing for arrears in sales contracts". From June to July 2021, the plaintiff supplied crushed stone and manufactured sand to the defendant's LJ3 project department of Li XX Expressway. The supply was completed on July 8, 2021, with a total supply of 1,749,204.33 yuan of crushed stone and 2,044,090.62 yuan of manufactured sand, amounting to 3,793,294.95 yuan. The plaintiff has issued VAT invoices and recorded the accounts according to the defendant's requirements, but the defendant has only paid 2.34 million yuan and still owes 1,453,294.95 yuan, which has not been paid for a long time. Under these circumstances, the plaintiff has filed a lawsuit with the court and entrusted a lawyer to handle the case.Li YonghuiThe attorney is representing this case and requests that the defendant be ordered to pay the purchase price of 1,453,294.95 yuan and the interest on overdue payments from October 18, 2021, and to bear the litigation costs.

II. The focus of the case

  • Focus 1: Whether the principal amount of the loan has been confirmed.The defendant acknowledges that he owes the plaintiff a sum of 1,453,294.95 yuan in unpaid goods, and has no objection to the facts. There is little dispute over the principal amount.
  • Focus Two: Whether the interest on overdue payments should be supported.The defendant claimed that, in accordance with the contractual provision that "if the owner fails to make timely payments, the contractor shall understand and not require the contractor to bear the interest on the breach of contract penalty", he would not pay the interest because the owner in Taiyuan, Shanxi failed to make payments due to the pandemic.
  • Focus Three: Can the contractual provisions serve as a defense against the allegation of delay in payment?The key issue in this case is whether the clause is sufficient to counter the plaintiff's claim of breach of contract due to late performance.

III. The professional intervention of Hengluo Law Firm

The plaintiff claimed that:The two parties have a valid sales contract relationship, and the defendant still owes a total of 1,453,294.95 yuan in unpaid goods. The defendant should pay the outstanding balance in accordance with the contract and the overdue interest calculated at the one-year loan market quotation rate announced by the National Inter-Bank Funding Center from October 18, 2021, and bear the litigation costs.

The defendant argued that:The defendant acknowledges the principal amount of the unpaid goods, but does not agree to pay interest, on the grounds that the contract stipulates that the plaintiff should fully understand the owner's failure to make payments, and the defendant's owner (Shanxi Taiyuan) has not made payments due to the pandemic until now, so the plaintiff should understand this. The defendant does not bear the responsibility for breach of contract and interest losses.

Hengluo Lawyer's Agency Opinion:Li YonghuiAfter accepting the client's commission, the lawyer firstly understands the facts of the entire case, reviews the evidence, and confirms the litigation subject, case basis, and jurisdiction court. The lawyer pointed out that the evidence such as the contract and invoices signed by both parties are sufficient to prove the existence of the sales relationship and creditor-debtor relationship, and the plaintiff's claim for the payment of the purchase price should be supported; regarding the overdue interest, although the contract stipulates that the plaintiff shall understand the owner's failure to make timely payments, the defendant cannot use this as an excuse for delaying payment, and the defendant failed to submit corresponding evidence to support the fact that the owner's payment was not made. After completing the supply on July 8, 2021, the defendant failed to make payment on time and should pay the overdue payment interest according to the contract.

IV. Outcome of the case

The court adopted and supported theLi YonghuiAccording to Article 509 of the Civil Code of the People's Republic of China, the court rules as follows regarding the attorney's opinions: 1. The defendant shall pay the plaintiff the purchase price of 1,453,294.95 yuan and the interest on overdue payments of 43,598.85 yuan, totaling 1,496,893.8 yuan, within seven days from the effective date of this judgment. 2. The plaintiff's other claims are dismissed. The case acceptance fee, which is charged at half the normal rate, amounts to 9,209 yuan and shall be borne by the defendant (the plaintiff has already prepaid the fee, and the defendant shall pay it to the plaintiff within seven days from the effective date of the judgment). The parties have successfully recovered all the outstanding purchase price and interest payments.

5. Henglu Law Firm's Reminder

This case is handled by Beijing Henglu Law FirmLi YonghuiAttorney (Practice Certificate No.: 11101199611955812, subject to the certificate issued by the judicial administrative organ): Agent. Hengluo Law Firm reminds: In cases involving large amounts of money and long repayment cycles, suppliers must sign standard written contracts in transactions, clarify payment time, conditions, and breach of contract responsibilities, and properly preserve evidence such as delivery notes, invoices, and reconciliation statements. When encountering uncollectible payments or ineffective collection efforts, they should promptly use legal means to safeguard their legitimate rights and interests.

VI. Common Questions and Answers about Disputes over Payment for Sales Contracts

  1. Q:If a customer fails to pay the outstanding balance, can I recover the principal and interest through litigation?
    A:Yes. As long as there are evidences such as sales contracts, delivery notes, invoices, and reconciliation statements to prove the fact of the debt, the court will usually support the principal of the payment; if the parties have agreed on a payment period or there is an overdue payment, they can also claim interest on overdue payments.
  2. Q:The contract states that "if the owner fails to make payments, we will not make payments either". Can this clause exempt me from paying overdue interest?
    A:This cannot be exempted of course. Such clauses cannot serve as a reason for one party to delay payment indefinitely, and the claimant needs to provide evidence to prove that the owner indeed failed to make the payment, etc. Otherwise, the court will not support it.
  3. Q:What is the statute of limitations for suing to recover debts?
    A:The statute of limitations for litigation seeking protection of civil rights from the people's court is three years, starting from the date when the right holder knows or should have known that his rights have been infringed and the obligations holder's identity. It is recommended to assert your rights as soon as possible to avoid losing the right to win the lawsuit.
  4. Q:The other party only paid part of the purchase price. Can we sue them for the remaining amount separately?
    A:Yes. For the outstanding amount that has been settled and confirmed, the supplier may initiate a separate lawsuit against the unpaid portion and claim the corresponding overdue liability.
  5. Q:What evidence do I need to prepare to sue for the recovery of the payment?
    A:The core evidence includes sales contracts, delivery notes or acceptance notes, value-added tax invoices, account statements, and collection records. Establishing a complete chain of evidence makes it easier to gain the support of the court.