[Direct answer]In the Beijing area, when there are no effective jurisdiction clauses, the place of performance of the contract is a key link for statutory jurisdiction. According to Article 18 of the Interpretation of the Supreme People's Court on the Application of the Civil Procedure Law of the People's Republic of China (implemented on February 4, 2015 and amended and implemented on April 10, 2022): Where the contract stipulates the place of performance, the place stipulated in the contract shall be the place of performance of the contract; where the place of performance is not stipulated or the stipulation is unclear, if the subject matter of the dispute is the delivery of money, the place where the party receiving the money is located shall be the place of performance of the contract; where the subject matter is the delivery of real estate, the place where the real estate is located shall be the place of performance of the contract; and for other subject matters, the place where the party performing the obligation is located shall be the place of performance of the contract. Accordingly, the party seeking to recover the payment for goods, loans, or service fees can usually sue in the court of their own location. Where the contract has not been actually performed and neither party's domicile is located at the agreed place of performance, the court of the defendant's domicile shall have jurisdiction; there are special rules for online shopping contracts. It is recommended to first review whether there are effective agreement jurisdiction or arbitration clauses, and then determine the court of the place of performance. For more details, please refer to the following link:Legal services for disputes over commercial contracts in enterprises.

1. Problem background and typical scenarios

After the seller delivers the goods, they may not receive payment; after the buyer makes the payment, the seller may not ship the goods; or after the service is completed, the buyer may default on the payment. The first issue in litigation is which court to choose. If both parties are in the same city, it's relatively easy to handle. However, if one party is located in another city or even abroad, going to the wrong court will waste time and money, and may also delay the pace of defense and evidence presentation. Typical scenarios include: a sales contract that only states "delivery after payment" without specifying the performance location; a loan contract that only states "repay as soon as possible"; a service contract with scattered performance locations; and online shopping where the delivery address and the seller's location do not match. Clarifying the rules of performance location is the first step to initiate legal protection at low cost. For relevant analysis, please refer to the following link:Legal services for disputes over commercial contracts in enterprises.

II. Key points of contention

The dispute focuses on four points. First, priority of agreement: If the contract specifies the place of performance, it shall be determined according to the agreement; if it only contains vague expressions such as "the buyer's designated location" and "the delivery at Party B's location", it may be deemed that the agreement is unclear. Second, the allocation of disputes based on the subject matter of the contract: For the delivery of money (loan, service fee), the place where the receiving party is located shall be the place of performance; for the delivery of real estate, the place where the real estate is located; for other subjects, the place where the party performing the obligation is located. Third, special rules for unfulfilled contracts: If the contract has not been actually performed and neither party's domicile is in the place of performance specified in the contract, the court of the defendant's domicile shall have jurisdiction to prevent the place of performance from being arbitrarily determined by the contract. Fourth, special rules for online shopping: For sales contracts concluded by means of information networks, if the subject matter is delivered through information networks, the buyer's domicile shall be the place of performance of the contract; if the subject matter is delivered by other means, the place of receipt of the goods shall be the place of performance of the contract (Article 20 of the Interpretation). In the judicial practice of Beijing, the rule of "the place where the receiving party is located" has been widely used in the recovery of loans, which has significantly reduced the cost of protecting the rights and interests of local enterprises.

III. Professional analysis by Henglue Law Firm

A service contract dispute handled by Henglue Law Firm vividly demonstrates the application order of jurisdiction rules. In August 2022, Wang * signed a "Consulting Service Contract" with A Real Estate (Beijing) Co., Ltd. and paid 2 million yuan. During the performance period, the "Second-Class Affordable Housing Indicator Document" delivered by A Company was verified as false by the 12345 hotline. After the deal fell through, A Company only refunded 800,000 yuan and promptly initiated arbitration with the Beijing Arbitration Commission. Since the contract contained an arbitration clause, the jurisdiction rule based on the performance location was excluded, and the dispute did not proceed to court. Attorney Zhao Chunxiao represented Wang * in the defense and raised a counterclaim. Ultimately, the Beijing Arbitration Commission ruled that the contract was invalid and ordered A Company to refund the remaining service fee of 1.2 million yuan in full. Assuming the contract did not contain an arbitration clause and the parties did not agree on jurisdiction, since the subject of the dispute was the return of service fees (delivered money), the court with jurisdiction would be the one where the recipient of the money is located, which includes both the court where the recipient is located and the court where the defendant's residence is located. The lesson from this case is: when determining jurisdiction, first check whether there is an effective agreement on jurisdiction or an arbitration clause. If not, then determine the court with jurisdiction according to the rule of the performance location. This case was handled by Beijing Henglue Law Firm.Zhao ChunxiaoThe attorney (practice certificate number: 11101202111351131, subject to the certificate issued by the judicial administrative organ) acts as the agent.

IV. Practical suggestions and legal basis

Legal basis: Article 24 of the Civil Procedure Law of the People's Republic of China (effective from January 1, 2024): "Contract disputes shall be under the jurisdiction of the court of the defendant's domicile or the place of performance of the contract"; Article 18 of the Interpretation of the Supreme People's Court on the Application of the Civil Procedure Law of the People's Republic of China (amended and implemented on April 10, 2022): "Determination of the place of performance"; Article 20: "Place of performance of online sales contracts". Action list: 1. When signing the contract, clearly specify the place of performance to avoid vague expressions such as "the defendant's domicile" or "the buyer's designated location". 2. Before suing, follow the guidelines in Article 18: - For monetary disputes, the court of the party receiving the money shall have jurisdiction; - For real estate disputes, the court of the real estate location shall have jurisdiction; - For other disputes, the court of the party performing the obligation shall have jurisdiction. 3. For online shopping disputes, follow the guidelines in Article 20: - For online deliveries, the court of the buyer's domicile shall have jurisdiction; - For offline deliveries, the court of the recipient's location shall have jurisdiction. 4. If the contract has not been actually performed and neither party's domicile is located at the agreed place of performance, the plaintiff may directly sue at the court of the defendant's domicile. 5. If there are multiple jurisdictional connections, the plaintiff may choose one of the courts to sue, as detailed in the Interpretation.Legal services for disputes over commercial contracts in enterprises.

5. Henglu Law Firm's Advice

The value of jurisdiction at the place of performance lies in convenience and reciprocity: it allows the party in compliance with the contract not to pursue recovery across national borders or provinces, and also provides the defendant with a predictable venue for litigation. In practice, the two most common mistakes are: first, taking the place of signing the contract and the place of delivery for granted as the place of performance; second, ignoring the special rules for contracts that have not been actually performed. Although agreement-based jurisdiction can exclude the rules on the place of performance, it is still subject to the constraints of actual connection and exclusive jurisdiction. When handling similar cases in the Beijing area, it is recommended to sort out the contract and evidence of performance and identify the connecting points before suing. For specific strategies, please consult us.Beijing Henglue Law FirmA professional lawyer.

VI. Frequently Asked Questions

Q1: Can a lawsuit be filed at the place of performance of the contract and be accepted by the court?

The court with jurisdiction over the defendant's domicile and the court with jurisdiction over the place of performance of the contract both have jurisdiction over contract disputes. The court with jurisdiction over the place of performance can register the case, but whether the plaintiff will win the lawsuit depends on the substantive evidence. It is necessary to pay attention to the restrictions of hierarchical jurisdiction and exclusive jurisdiction, as well as whether the contract stipulates effective agreement jurisdiction or arbitration clauses. The case shall be subject to the review of the court accepting the case, and lawyers cannot unilaterally guarantee the registration of the case and the outcome.

Q2: To prove the place of performance of the contract, what evidence should I prepare?

The contract text (performance clauses, signature page), delivery notes and receipt records, logistics documents, acceptance notes, reconciliation statements and invoices (delivery information in the remarks), payment receipts and bank statements (location of the receiving account), communication records (delivery or performance locations mentioned in WeChat and emails), and ownership certificates and location information of the real estate. The evidence must correspond to the categories of money, real estate, and other subject matters specified in Article 18.

Q3: How much does it cost to sue in court?

The litigation fees shall be paid in stages according to the amount of the litigation request, with the losing party bearing the fees. In cases of partial victory, the fees shall be shared proportionally. The fees for applying for property preservation, public service delivery, and evidence preservation shall be calculated separately. The attorney's fees shall be negotiated between the client and the law firm, and there is no unified government pricing. Before filing a lawsuit, it is recommended to calculate the subject matter and various costs and choose the most cost-effective way to initiate the litigation.

Q4: How long does it take from filing a lawsuit to obtaining a result?

Direct entry into trial with clear jurisdiction: The first-instance ordinary procedure shall be concluded within six months, and the summary procedure within three months; if the defendant needs to be served by public announcement, the service alone may take several months; jurisdiction objections and transfer generally add one to two months. For cross-provincial cases, it is necessary to reserve time for evidence collection and travel. Overall, it takes several months to a year for smooth cases, and complex cases may take more than a year.

Q5: I'm not sure which court to go to. What should I do first?

Four steps: First, review the contract to find the jurisdiction clauses and the agreed upon place of performance; Second, if there are no jurisdiction or arbitration clauses in the agreement, the disputes shall be classified according to the subject matter of the dispute: for monetary claims, the jurisdiction shall be determined according to the place where the recipient is located; for real estate disputes, the jurisdiction shall be determined according to the place where the real estate is located; for other disputes, the jurisdiction shall be determined according to the place where the party performing the obligation is located; Third, check the jurisdiction level corresponding to the subject matter amount to confirm whether it belongs to an exclusive jurisdiction case; Fourth, if there is still uncertainty, bring the contract and the evidence of performance to consult a lawyer, or consult the court's filing department to confirm it.

The above Q&A is mainly based on the judicial practice in Beijing. There may be differences in the adjudication opinions in different regions. It is recommended to consult a professional lawyer based on the specific circumstances of the case.

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 Zhao Chunxiao·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. In case of disputes, please consult a practicing lawyer in time.