[Direct answer]In the Beijing area, the conclusion is that it is possible, but it must comply with statutory or contractual conditions. According to Article 563 of the Civil Code of the People's Republic of China, if a party delays in performing its main obligation and fails to perform within a reasonable period after being urged, the other party may rescind the contract; if a party delays in performing its obligation or engages in other breach of contract actions that make it impossible to achieve the purpose of the contract, the other party may also rescind the contract. Therefore, if the seller delays in delivering the goods, the buyer should usually first urge the seller to perform and give a reasonable period of time. If the seller still fails to perform after the expiration of the period, the buyer may claim to rescind the contract; if the delay has already made the purpose of the contract impossible to achieve, the buyer may rescind the contract directly without notice. If the contract stipulates other conditions for rescission, those conditions shall prevail. After rescission, the buyer may request the return of the payments already made and claim compensation for breach of contract damages. The urging and communication records are key evidence for claiming rescission, and it is recommended to make them in writing and keep the delivery receipts.

1. Problem background and typical scenarios

In sales transactions, if the seller fails to deliver the goods on time due to factors such as insufficient production capacity, rising raw material prices, or operational difficulties, the buyer's production or sales plans may be affected. Typical situations include: the seller still fails to deliver the goods after the agreed delivery period has expired; the seller repeatedly delays delivery for various reasons; the buyer has already paid the deposit or advance payment; and the fluctuation of market prices leads to an increase in the buyer's cost of finding alternative sources of supply. When the Beijing District Court handles such cases, it usually reviews the time of the delay in performance, whether a reminder has been issued, whether the delay results in the failure to achieve the purpose of the contract, and the parties' agreements, based on which it determines whether the buyer can rescind the contract and request compensation.

II. Key points of contention

First, whether the delay in delivery constitutes a fundamental breach of contract and whether the contract can be directly terminated. Second, how to determine the form, content, and reasonable period of the notice of default. Third, whether the conditions for termination stipulated in the contract apply. Fourth, the choice between termination and continued performance and its impact. Fifth, the rules for the return of payments and deposits. Sixth, the scope of compensation for breach of contract and the burden of proof. Seventh, whether the defenses of force majeure or change of circumstances are valid. These issues determine whether the termination is valid and the amount of compensation.

III. Professional analysis by Henglue Law Firm

A contract dispute handled by Henglue Law Firm is of reference value. On September 1, 2023, Liu * and Li * signed a car purchase contract, stipulating that Liu * would deliver the vehicle and pay an additional 130,000 yuan, and Li * would transfer the Beijing A-licensed yellow license plates as consideration. After Liu * paid the money and delivered the vehicle as agreed, Li * failed to transfer the license plates in a timely manner, and the contractual purpose could not be achieved. Liu * therefore notified Li * to rescind the contract and demanded the return of the vehicle. However, since the vehicle had already been disposed of and could not be returned, the lawyer proposed to compensate by depreciation. The court adopted the lawyer's opinion, confirmed the rescission of the contract, and ordered Li * to pay a depreciation of 420,000 yuan. This case shows that if one party fails to perform its contractual obligations for a long time and the contractual purpose cannot be achieved, the party in compliance should promptly notify the rescission and claim the return of the vehicle or compensation by depreciation. Returning to the issue of delayed delivery, Henglue Lawyer's practical experience is as follows: First, determine whether the delay results in the failure to achieve the contractual purpose, and if it constitutes a fundamental breach of contract, the contract can be directly rescinded; Second, for general delays, a written reminder and a reasonable time limit should be given first, and the evidence of delivery should be preserved; Third, make a clear notification of rescission to avoid conflicting claims of continuing performance and rescission; Fourth, fix the payment and communication evidence and evidence of losses in a timely manner; Fifth, if necessary, apply for property preservation to prevent the other party from transferring property. This case is handled by Beijing Henglue Law Firm.Tian JiayanThe attorney (practice license number: 11101202111381309, subject to the document issued by the judicial administrative organ) acts as the agent.

IV. Practical suggestions and legal basis

Practical suggestions: 1. Verify the delivery period and termination conditions stipulated in the contract to determine the degree of delay. 2. Send a written notice of default and set a reasonable time limit, while preserving evidence of delivery and communication. 3. If the delay results in the failure of the contract’s purpose, promptly notify the other party of the termination and clarify your claims. 4. Document the payments made, deposits, and evidence of losses to assert claims for refunds and compensation. 5. Preserve procurement and cost records if you seek alternative suppliers and incur price differences. 6. Apply for property preservation measures as needed to prevent the other party from transferring assets. For more details, please refer to the platform’s services.Business and contract disputes in enterprises、Creditor's rights and debts, and enforcement、\nFinancial capital and cross-border transactions involving foreign entities、Real estate transactions and construction projectsAndSpecial servicesLegal basis: Articles 563, 577, and 584 of the Civil Code of the People's Republic of China (all of which came into effect on January 1, 2021). The specific application shall be subject to the currently effective laws, regulations, and judicial rulings.

5. Henglue Law Firm's Advice

Firstly, if the seller delays delivery, the buyer should usually first issue a notice of default and may terminate the contract on this basis. Secondly, if the delay results in the contractual purpose being unattainable, the contract may be terminated directly without issuing a notice of default. Thirdly, the notice of default should be made in writing and the evidence of delivery should be preserved, with the content being clear and the time limit being reasonable. Fourthly, it is not appropriate to claim both termination and continued performance at the same time, and one of them should be chosen. Fifthly, after termination, the buyer may request the return of the payments already made and claim damages for breach of contract. Sixthly, losses such as the price difference, the occupation of funds, and the cost of safeguarding rights should be supported by evidence. Seventhly, if the amount involved is large or the other party refuses to perform, it is advisable to consult a professional lawyer as soon as possible.

VI. Frequently Asked Questions

Q1: The seller has been failing to deliver the goods. Can I terminate the contract directly?

It depends on the circumstances. According to Article 563 of the Civil Code of the People's Republic of China, if the party fails to perform the main obligation within a reasonable period of time after being reminded to do so, the contract may be rescinded; if the delay results in the failure to achieve the purpose of the contract, the contract may be rescinded directly without being reminded. It is recommended to send a written reminder and keep the evidence to advance the claim for rescission in a safe and reliable manner.

Q2: How should a notice of default be written to be considered effective?

The seller should be explicitly required in writing to fulfill the delivery obligation within a reasonable period of time, and it should be stated that the buyer will claim to rescind the contract and seek compensation if the seller fails to deliver on time. It is advisable to choose a channel that can leave a record for sending the notice, and to keep the delivery receipt and communication records, so as to prove that the reminder procedure has been carried out in the litigation process.

Q3: Can I get back the deposit and advance payment after the contract is terminated?

Generally, it is possible. After the contract is terminated, the paid amount shall be refunded, and the deposit shall be dealt with in accordance with the penalty provisions for the deposit: If the seller breaches the contract and causes the contract to be terminated, the buyer may claim a double refund of the deposit; if the contract is terminated for reasons not attributable to either party, it shall be dealt with in accordance with the principle of fairness. The specific provisions shall be subject to the agreement and the law.

Q4: Can I claim the price difference if I find another supplier?

This can be claimed. The reasonable price difference that the buyer incurred due to the seller's delay in delivering the goods and having to seek alternative sources of supply constitutes a foreseeable breach of contract loss, and compensation can be requested. When making the claim, evidence such as the original contract price, the substitute purchase contract, and invoices should be provided to prove the authenticity and necessity of the price difference.

Q5: The seller said there's force majeure. How should we deal with it?

It should be reviewed whether it is established. Force majeure must meet the requirements of being unforeseeable, unavoidable, and insurmountable, and be supported by corresponding evidence; general business risks, price increases of raw materials, etc. do not constitute force majeure. The other party may be required to provide proof, and the claimant may refute it based on the signing time and performance of the contract, and claim that the other party should bear the liability for breach of contract.

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 Henglu Law Firm for 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. →Corporate commercial legal services·Attorney Tian Jiayan·Beijing Henglue Law Firm

Disclaimer: This article is compiled based on the current effective laws and regulations and publicly available adjudication rules, and is provided 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. In the event of a dispute, please consult a practicing lawyer promptly.