[Case Summary]This case involves a dispute over the payment of the purchase price of a sales contract. Ms. Chen, the plaintiff, provided the defendant, the construction engineering company, with the installation of wooden doors (including labor and materials). The defendant defaulted on the payment of the materials. On May 3, 2019, the defendant issued a promissory note confirming the debt of 520,000 yuan and affixed the company's official seal. However, the defendant only repaid 100,000 yuan and failed to recover the remaining amount. Ms. Chen entrusted Beijing Henglu Law Firm to handle the case on her behalf.Tian JiayanThe lawyer safeguarded the client's rights. The lawyer applied for pre-litigation property preservation to seize the defendant's property worth 770,000 yuan, and organized evidence such as promissory notes, transfer records, and debt collection letters. The court supported the plaintiff's claims and ordered the defendant to pay the debt of 770,000 yuan and the preservation guarantee fee of 700 yuan. The core disputes are the payment responsibility for the overdue debt and the responsibility for bearing the preservation costs. Applicable legal provisions: Articles 509 and 579 of the Civil Code of the People's Republic of China.

I. Review of the case

The most headache-inducing issues for suppliers include "what to do if project payments are delayed or not paid at all", "can I seize the other party's property before suing them", and "is a promissory note with a company's official seal valid". In late 2016, after being introduced by someone, the plaintiff, Ms. Chen, provided wooden door installation services (including labor and materials) for a project of the defendant, a certain construction engineering company. The installation was completed in early 2017, but the defendant has been delaying the payment of materials for 870,000 yuan. Through negotiation, on May 3, 2019, the defendant issued a promissory note stating that it owed Ms. Chen 520,000 yuan for materials and affixed the company's official seal. On January 18, 2021, the defendant's former legal representative transferred 100,000 yuan as repayment, but thereafter, Ms. Chen repeatedly demanded repayment without any response. After unsuccessful attempts to recover the debt, Ms. Chen contacted Beijing Henglu Law Firm and entrusted them to handle the case.Tian JiayanThe lawyer protects the client's rights and interests.

II. The focus of the case

  • Focus 1: The contractual relationship between the buyer and the seller and the amount of the outstanding debt.The IOU, stamped with the official seal, confirms the debt, indicating that there is a factual sales relationship between the two parties.
  • Focus 2: Can pre-litigation property preservation exert pressure quickly?By preserving the assets under the defendant's name, we can encourage him to repay the debt voluntarily.
  • Focus 3: Who will bear the cost of the preservation guarantee fee?Should the defendant bear the preservation guarantee fee incurred in protecting rights and interests?

III. Professional intervention by Hengluo Lawyers

The original plaintiff claimed that:The defendant defaulted on the purchase payment, issued a promissory note confirming the debt, and only partially repaid the debt after being reminded. The plaintiff requests the court to order the defendant to pay the purchase price and the preservation guarantee fees incurred in safeguarding their rights, and to bear the litigation costs.

The defendant argued that:At the trial of this case, the defendant did not send any representative to attend the court hearing and did not make any defense.

Hengluo Lawyer's Agency Opinion:Tian Jia YanAfter accepting the client's commission, the lawyer immediately began representing her. He explained the legal focus and litigation strategy to Ms. Chen, analyzed that the defendant defaulted on the payment and issued a promissory note, indicating that there was a valid sales contract between the two parties, and that the defendant should fulfill his obligations in a timely and comprehensive manner according to the promissory note. To maximize the recovery of the debt, the lawyer applied for pre-litigation property preservation, sealing, impounding, and freezing the defendant's bank deposits of 770,000 yuan or equivalent assets; at the same time, he assisted in organizing evidence such as the promissory note, bank transfers, collection letters and mailing information, SMS screenshots, phone recordings, preservation guarantee invoices, and enterprise credit reports, forming a complete chain of evidence.

IV. Outcome of the case

The court supports it.Tian JiayanAccording to Articles 509 and 579 of the Civil Code of the People's Republic of China and Article 147 of the Civil Procedure Law of the People's Republic of China, the court rules as follows regarding the lawyer's opinions and claims: The defendant shall pay the plaintiff the sum of 770,000 yuan for the purchase price and 700 yuan for the preservation guarantee fee within 15 days after the judgment takes effect; the case acceptance fee shall be collected at half the normal rate, amounting to 4,175 yuan, and the preservation fee shall be collected at 4,370 yuan, all of which shall be borne by the defendant. This lawsuit prompted the other party to repay the money quickly.

5. Hengluo Law Firm's Reminder

This case is handled by Beijing Henglu Law Firm.Tian Jia YanThe attorney (practice certificate number: 11101202111381309, subject to the document issued by the judicial administrative organ) acts as the agent. Hengluo Law Firm reminds: The disputes over sales contracts impose strict evidence requirements on creditors. Transactions should have written contracts with clear payment time, conditions, and breach of contract liabilities. If you find any signs of the other party's non-payment, you should consult a professional lawyer as soon as possible, collect evidence under their guidance, and apply for property preservation if necessary.

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

  1. Q:If the other party defaults on the payment of the goods, can I seize their property before suing them?
    A:Yes. You can apply for property preservation before or during the litigation to seize and freeze the equivalent assets under the other party's name, so as to prevent them from transferring their assets.
  2. Q:Is the IOU valid if it is stamped with the company's official seal?
    A:It's effective. The promissory note with the company's official stamp has strong evidentiary value and can prove the fact that the company owes money and the amount of the debt.
  3. Q:Who will pay the preservation guarantee fee for chasing the payment of the debt?
    A:If it is stipulated in the contract or supported by the court, it can be borne by the losing party. In this case, the preservation guarantee fee shall be borne by the other party.
  4. Q:If there's no written contract, can I still recover the payment with just a promissory note?
    A:Yes. The IOU, combined with transfer records, delivery records, and records of collection of debts, etc., can prove the facts of the sale and the debt. The court will support it.
  5. Q:How can suppliers prevent payment defaults?
    A:Sign standard contracts, clarify payment and breach of contract clauses, keep evidence of performance, and promptly engage a lawyer to intervene when risks are identified.