[Direct answer]In the Beijing area, it is recommended to handle the matter in four steps: "fixing evidence, written communication, assessing breach of contract, and choosing a path". Firstly, fix the evidence: preserve the contract, supplementary agreements, correspondence, payment and delivery receipts, as well as communication records during the performance process, and if necessary, fix them through notarization. Secondly, written communication: send a written letter to the other party, clarify the disputed matters, our claims and requirements, and avoid relying solely on oral negotiations. This will interrupt the statute of limitations and preserve evidence. Thirdly, assessing breach of contract: determine whether it is our breach, the other party's breach, or both parties' fault, analyze whether it constitutes a fundamental breach of contract, and whether the conditions for termination are met. Calculate the breach of contract damages and actual losses. Fourthly, choosing a path: prioritize negotiating and resolving disputes for those that can be resolved through negotiation. For those requiring third-party intervention, apply for mediation. If necessary, initiate litigation or apply for arbitration according to the contract provisions, and consider applying for property preservation. According to the provisions of the Civil Code of the People's Republic of China (effective January 1, 2021) on contract performance, breach of contract liability, and contract termination, the core of dispute resolution lies in evidence and contract basis. It is crucial not to wait passively or stop performance without authorization, otherwise, we may incur greater losses and be held accountable.

1. Problem background and typical scenarios

Disputes during the performance of contracts are quite common, and the way they are handled directly affects the outcome. There are four typical scenarios: First, the other party delays delivery or payment, and there are significant disputes over the liability for breach of contract between the two parties; Second, there are different understandings of quality standards or acceptance criteria, with one party refusing to accept the goods and the other party refusing to make corrections; Third, the performance conditions change, and one party requests to amend the contract while the other party disagrees; Fourth, one party has already partially performed the contract, but the other party claims to terminate the contract. In the Beijing area, where commercial transactions are frequent, dealing with disputes requires both legal judgment and commercial considerations. A timely and orderly response is often more effective than emotional confrontation.

II. Key points of contention

First, the determination of breach of contract and the allocation of responsibilities. Second, whether it constitutes a fundamental breach of contract and whether the contract can be terminated. Third, the application of the right of defense of simultaneous performance, the right of defense of prior performance, and the right of defense of unease. Fourth, the calculation and adjustment of the breach of contract penalty and the actual losses. Fifth, whether the contractual obligations should continue to be performed during the dispute period. Sixth, the connection between the statute of limitations and the fixation of evidence.

III. Professional analysis by Henglue Law Firm

Henglue Law Firm once handled a contract dispute case: The client signed a "Beijing Household Registration Marriage and Settlement Agreement" with another party and paid 100,000 yuan to secure a household registration for their child. However, due to policy changes, the registration failed, and the client sued to declare the agreement invalid and recover the payment. The court ruled that the agreement violated public order and good customs by using a fake marriage to evade household registration policies, and thus was invalid from the outset according to the provisions of the Civil Code of the People's Republic of China (effective January 1, 2021). The receiving party was ordered to return the payment within a specified timeframe. This case highlights: When handling contract disputes, the first step is not to hastily assert breach of contract liability, but to review whether the contract itself is valid. If the contract is invalid from the outset or contains grounds for revocation, the basis of the claim and the direction of the assertion will be completely different. Regarding performance disputes, it is also necessary to first clarify the validity of the contract and the content of the obligations, then determine who constitutes a breach of contract, whether they can exercise a defense right, and whether there are conditions for termination. In practice, clients often fall into two pitfalls: first, they unilaterally stop performance due to the other party's breach of contract, only to find themselves in breach of contract themselves; second, they passively wait and fail to fix evidence in time, making it difficult to clarify the facts. Therefore, when encountering performance disputes, it is necessary to communicate in writing as soon as possible, fix evidence, exercise rights cautiously, and, if necessary, seek advice from professional lawyers to determine the appropriate response strategy. This case was handled by Beijing Henglue Law Firm.Xue SuhuaThe attorney (practice license number: 11101201211769926, subject to the document issued by the judicial administrative organ) acts as the agent.

IV. Practical suggestions and legal basis

Action suggestions: First, immediately sort out and fix all contracts and performance evidence, and notarize important materials in time; Second, send written letters to clarify claims and keep the delivery and receipt certificates; Third, carefully judge whether you can exercise the right of defense and avoid stopping performance without authorization to increase risks; Fourth, calculate the breach of contract penalty and actual losses, and apply for judicial appraisal if necessary; Fifth, prioritize consultation and mediation, and if no agreement is reached, proceed with litigation or arbitration according to the contract; Sixth, pay attention to the status of the property and, if necessary, apply for property preservation to ensure subsequent enforcement. For enterprise contracts and commercial disputes, you can refer to the above suggestions.Business and Commerce | Contract DisputesThe services related to the realization and enforcement of creditor's rights can be referred to for reference.Creditor-debtor relations | Enforcement casesPlease refer to the slides for more information on the company's operations and long-term consultants.Intellectual Property Protection | Corporate Legal ComplianceA contractual clause. Legal basis: The provisions of the Civil Code of the People's Republic of China (effective as of January 1, 2021) regarding contract performance, rights of defense, breach of contract liability, and contract termination. The specific application shall be subject to the currently effective laws, regulations, and judicial rulings.

5. Henglu Law Firm's Advice

First, we need to examine the validity of the contract before discussing the liability for breach of contract. Second, it's important to communicate in writing and keep records, rather than just having verbal negotiations. Third, unilaterally ceasing to perform the contract may constitute a breach of contract on your part. Fourth, it's necessary to consider asset preservation as early as possible to ensure that the judgment can be enforced after winning the case. Fifth, if it's possible to resolve the dispute through negotiation, we should opt for negotiation. Litigation is a means to an end, not the end itself. For disputes involving the performance of the contract, we can resort to the following methods:Business and Commerce | Contract DisputesWe provide a comprehensive solution for services, which includes measures to facilitate the enforcement of creditor's rights.Creditor-debtor relations | Enforcement casesFor reference, please refer to the section on corporate compliance and general legal practicesIntellectual Property Protection | Corporate Legal Compliance板块。

VI. Frequently Asked Questions

Q1: If the other party breaches the contract, can I not fulfill my obligations?

It depends on whether it meets the conditions for the right of defense. According to the provisions of the Civil Code of the People's Republic of China (implemented on January 1, 2021), when the conditions for the right of defense of simultaneous performance, the right of defense of prior performance, or the right of defense of unease are met, the parties may suspend performance; but if they suspend performance without meeting the conditions, they may constitute a breach of contract and bear the liability for breach of contract. Therefore, before making the decision to suspend performance, the legal basis should be evaluated.

Q2: Should I send a lawyer's letter first?

Depending on the circumstances, a lawyer's letter is often an effective means. A lawyer's letter can clarify the claim of rights, urge performance, set a fixed time node, and in many cases, prompt the other party to negotiate; but it is not a necessary procedure for all cases. If the other party obviously lacks the willingness to perform or there is a risk of transferring property, we should simultaneously consider litigation and property preservation to avoid missing the opportunity by just sending a letter.

Q3: Was the contract still being performed during the dispute period?

In principle, the contract should continue to be performed unless there are statutory or contractual circumstances requiring its termination. The contract remains valid until it is rescinded or revoked, and both parties should continue to fulfill their respective obligations. Unilaterally stopping performance may lead to a breach of contract on their part. If there are indeed circumstances where continuing to perform the contract would cause significant losses, it is recommended to first consult a lawyer and handle the matter legally through the right of defense, amendment of the agreement, or termination procedures.

Q4: Do verbal agreements count as legally binding?

It may be effective, but it's difficult to provide evidence. If the oral settlement or amendment reached by both parties during the dispute is later denied by the other party, it's hard to prove its content. Therefore, the results of the negotiation should be fixed in writing in a timely manner, such as signing a settlement agreement, a supplementary agreement, or at least confirming it via email or WeChat, and keeping the correspondence records to prevent the dispute from recurring.

Q5: How long should I wait before suing if we can't reach an agreement through negotiation?

It is advisable to take action as soon as possible within the statute of limitations. The purpose of negotiation is to save costs, but it should not affect the statute of limitations and the preservation of evidence. If there is no progress in the negotiation for a long time, or if you find that the other party is transferring property or their ability to perform obligations is declining, you should promptly file a lawsuit or apply for arbitration and consider asset preservation to avoid being unable to enforce the judgment after winning the case. The specific timing should be determined based on the circumstances of the case and the statute of limitations.

The above content is based on the compilation of judicial practices in the Beijing area. The facts of individual cases and the jurisdiction of the court may affect the conclusions. Welcome to consult Henglue Lawyers about specific situations.

If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the evidence materials, to avoid missing the statutory time limit. →Business and commercial legal services·Attorney Xue Suhua·Beijing Henglue Law Firm

Disclaimer: This article is compiled based on the current laws and regulations and public adjudication rules, and is for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. If you encounter disputes, please consult a practicing lawyer in time.