[Direct answer]In the Beijing area, it is generally possible to claim for a refund or compensation in the form of a discount. According to Article 566 of the Civil Code of the People's Republic of China (effective January 1, 2021), after the contract is terminated, the party that has not yet performed the obligation shall terminate its performance; and for the party that has already performed the obligation, the party may request restoration of the original state or take other remedial measures according to the performance situation and the nature of the contract, and have the right to claim compensation for losses. Therefore, the paid amount can generally be claimed for a refund; if the subject matter can no longer be returned or is not suitable for return, the party may claim compensation in the form of a discount. If the termination is due to the breach of contract by one party, the non-breaching party may also claim compensation for the losses incurred, such as interest on the use of funds, the difference in price of alternative transactions, and other reasonable expenses. It should be noted that the calculation method and amount of the discount must be based on evidence, usually determined in combination with the contract provisions, the performance situation, and market prices. When making a claim, it is advisable to submit payment receipts, delivery records, and value proof materials.

1. Problem background and typical scenarios

After the contract is terminated, the most concerned issue for both parties is how to handle the paid amount and the delivered subject matter. Typical scenarios include: the buyer pays the money but the seller breaches the contract, and the buyer terminates the contract and demands a refund; the seller delivers the goods but the buyer breaches the contract and terminates it, and the seller demands the return of the goods or compensation in the form of a discount; the subject matter has been used, consumed, or resold, and it is impossible to return the original item; the contract is terminated after the performance of part of the service, and how to calculate the fees; and there are significant disagreements between the two parties regarding the time of termination and the handling of the consequences. When adjudicating such cases in Beijing, the court will determine the method of return or compensation in the form of a discount based on the performance of the contract and its nature, and handle the corresponding compensation for losses.

II. Key points of contention

First, the applicable conditions for restoring the status quo and compensating with a discount. Second, the calculation standards and basis for the discount. Third, how to determine the time of rescission and the effectiveness of the notice. Fourth, whether the penalty for breach of contract and the compensation for losses can be used concurrently. Fifth, the handling of the parts that have been consumed or resold. Sixth, how to fulfill the ancillary obligations after rescission.

III. Professional analysis by Henglue Lawyers

Henglue Lawyer once represented a contract dispute case: On September 1, 2023, Liu * and Li * signed a car purchase contract, which stipulated that Liu * would deliver the vehicle and 130,000 yuan, and Li * would use the Beijing A-licensed two-wheeled license plate under his name as the counter-performance and handle the transfer of ownership. After Liu * fulfilled his obligations, Li * delayed handling the transfer of ownership. Liu * therefore notified Li * to terminate the contract and demanded compensation. The lawyer represented Liu * and argued that the contract was valid and that the defendant should pay compensation after the contract was terminated. The court adopted the lawyer's opinion, ruled that the car purchase contract was terminated, and ordered the defendant to pay the plaintiff 420,000 yuan. The court held that after the contract was terminated, the defendant should return the vehicle and 130,000 yuan. Since the vehicle could not be returned, the plaintiff had the right to claim compensation based on the vehicle's value. Based on the statements in the courtroom and the practices of the transaction market, the court determined that the amount of compensation should be set at 420,000 yuan. This case shows that the termination of a contract does not mean that the paid amount is irreversible. Parties can claim restoration of the original state or compensation based on the value of the vehicle in accordance with Article 566 of the Civil Code, but the amount of compensation must be supported by facts and practices, and the parties should provide evidence of payment, delivery, and value when making such claims. 恒略律师曾代理一起合同纠纷案件：刘某与李某于2023年9月1日签订购车合同，约定刘某交付车辆及13万元，李某以其名下京A黄牌两轮牌照作为对价并办理过户。刘某履行后，李某迟迟未办理过户，刘某遂通知解除合同并要求赔偿。律师代理刘某主张合同有效、解除后应折价赔偿。法院采纳代理意见，判决确认购车合同解除，并判令被告给付原告款项42万元。法院认为合同解除后被告应返还车辆及13万元，因车辆无法返还，原告享有折价赔偿的权利，结合庭审陈述与交易市场惯例，酌定返还金额以42万元为宜。该案说明，合同解除并不意味着已付款项一去不回，当事人可依第五百六十六条主张恢复原状或折价补偿，但折价数额需有事实与惯例支撑，主张时应提供付款、交付与价值证明材料。

IV. Practical Suggestions and Legal Basis

Action list: First, send the notice of termination in a timely manner and keep the delivery receipt, specifying the termination time; Second, organize payment receipts, delivery records, and communication records to form a complete performance chain; Third, if the subject matter cannot be returned, collect materials such as market prices, similar transactions, and depreciation to provide a basis for depreciation; Fourth, claim compensation for the losses that have occurred, such as interest and the price difference of substitute transactions; Fifth, for the parts that have been consumed or resold, truthfully describe them and propose a reasonable depreciation plan. For contract disputes, you can refer to the relevant provisions.Business and contract disputes in enterprises; Regarding the execution of the funds, it can be combined withCreditor's rights and debts, and enforcementColumn. Legal basis: Articles 565, 566, 577, and 584 of the Civil Code of the People's Republic of China (effective as of January 1, 2021). The specific application shall be subject to the currently effective laws, regulations, and judicial rulings. This case is handled by Beijing Henglue Law Firm.Tian Jia YanThe attorney (practice license number: 11101202111381309, subject to the certificate issued by the judicial administrative organ) acts as the agent.

5. Henglu Law Firm's Advice

Firstly, the paid amounts can, in principle, be claimed back, and if they cannot be returned, compensation in the form of a discounted price may be offered. Secondly, the amount of the discounted price must be supported by the market price and the performance of the contract. Thirdly, the notice of termination should be issued promptly and documented, as the time of termination affects the calculation of the consequences. Fourthly, the losses caused by the breach of contract can be claimed together to avoid only discussing the return of the payment. If you are currently facing similar issues, you can seek assistance through the following channels:Business and contract disputes in enterprisesWe provide a comprehensive solution for services, which includes the integration of payment execution.Creditor's rights and debts, and enforcement板块。

VI. Frequently Asked Questions

Q1: Can the money paid after the contract is terminated be refunded?

Generally, the return of the subject matter can be claimed. According to Article 566 of the Civil Code of the People's Republic of China, after the contract is rescinded, the party who has performed the contract may, based on the performance of the contract and the nature of the contract, request the restoration of the original state or take other remedial measures, and have the right to claim compensation for losses. If the subject matter cannot be returned, the party may claim compensation in the form of a discount. Whether the subject matter can be fully returned and the amount of compensation shall be determined based on the performance of the contract and the liability for fault.

Q2: Can I get a refund if I've already used the items?

There may be a need for a discount. If the subject matter has been used, consumed, or resold and cannot be returned in its original state, the party may claim compensation in the form of a discount, that is, the amount to be returned shall be determined based on the actual value of the subject matter and its usage. When making such a claim, the party shall provide records of delivery and usage, as well as evidence of market prices and depreciation. The court will make a comprehensive determination based on the contractual provisions and transaction practices.

Q3: Can I still claim the breach of contract penalty after the contract is terminated?

This can be claimed, but it should be coordinated with the compensation for losses. The termination does not affect the assumption of breach of contract liability. The non-breaching party may claim the breach of contract penalty according to the contract and claim compensation for the actual losses exceeding the breach of contract penalty; duplicate parts are generally not supported repeatedly. It is recommended to specify the basis and calculation method of the request to avoid being adjusted due to overlapping requests.

Q4: When will the notice of termination take effect?

According to Article 565, the contract is terminated when the notice reaches the other party. Therefore, the time of termination is usually determined by the arrival of the notice. It is recommended to deliver the notice in a traceable manner and keep the relevant evidence. If the termination is claimed through litigation, the date on which the copy of the complaint is served to the other party shall be the time of termination. The determination of the time of termination directly affects the calculation of losses and the scope of liability.

Q5: What should I do if the other party refuses to refund the money?

It can be resolved through negotiation or litigation. If negotiation fails, a lawsuit can be initiated to request the return of the payment, compensation in the form of a discount, and damages; to prevent the other party from transferring assets, an application for property preservation can be made before or during the litigation. If the other party still fails to perform after obtaining an effective judgment, an application for enforcement can be made. Keeping complete payment and communication evidence is the basis for asserting rights.

The above answer is based on the judicial practice in Beijing. The adjudication guidelines in other provinces and cities may vary. For specific cases, please refer to the local rules and evidence situation.

If you are currently facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the relevant evidence materials to avoid missing the statutory time limits. →Corporate commercial legal services·Attorney Tian Jiayan·Beijing Henglu Law Firm

Disclaimer: This article is compiled based on the current effective laws and regulations and open 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.