[Direct answer]In the Beijing area, if the other party only pays half the amount, whether you can deliver only half the goods depends on the order and agreement of contractual obligations, rather than being able to "split it in half" automatically. If there is no prioritization of delivery and payment obligations between the two parties, and they are mutually dependent on each other's performance, you can exercise the right of defense of simultaneous performance according to Article 225 of the Civil Code of the People's Republic of China, and refuse to deliver the goods before the other party performs its obligation; if the contract stipulates that you deliver the goods first and the other party pays later, you can exercise the right of defense of prior performance according to Article 226, and suspend performance until the other party fulfills its obligation. However, the scope of refusing to deliver goods should be commensurate with the degree of the other party's breach of contract, and it is strictly prohibited to unilaterally stop delivery completely and thereby breach the contract yourself. It is recommended to first send a letter to confirm the fact that the other party owes you money, and then assert the right of defense. For more details, please refer to the following link:Business and contract dispute resolution services for enterprises.

1. Problem background and typical scenarios

"Pay half, deliver half" is the most prone to disputes in the performance of sales contracts. Typical scenarios include: in batch supply contracts, the buyer only pays the down payment but demands the delivery of all goods; in customized processing contracts, the client defaults on progress payments, and the contractor hesitates whether to continue production; and under long-term supply framework agreements, the buyer withholds part of the payment on the grounds of quality disputes. Many sellers worry that "not delivering all the goods constitutes a breach of contract", but they are also afraid that "delivering all the goods will result in unpaid money". When handling similar cases in Beijing, the court pays more attention to the order of performance by both parties and the symmetry of the exercise of the right to demand payment and the right to defense, which directly affects the determination of breach of contract and the allocation of losses.

II. Key points of contention

The focus of the dispute lies in three aspects. Firstly, the order of obligations: whether the contract stipulates the priority of payment and delivery, and determines whether to apply the principle of simultaneous performance or the right of defense of prior performance. Secondly, the symmetry of defense: the value of the refused delivery should be roughly equivalent to the unpaid amount by the other party. Obviously, a significant mismatch may be deemed as an abuse of the right of defense and constitute a breach of contract. Thirdly, the reminder and evidence: whether to first remind the other party to perform their obligations, and whether to keep the evidence of the other party's arrears and the party's own inventory. The court usually requires the defending party to prove that the other party breached the contract first and that their own refusal was reasonable, rather than simply refusing all obligations on the grounds of "not being paid enough".

III. Professional analysis by Hengluo Lawyers

Based on the practical experience of handling commercial contract disputes for enterprises in our firm, the most common problem in such disputes is "excessive exercise of the right of defense". Hengluo Lawyers usually advise clients to: first, clarify the order of performance stipulated in the contract and determine whether they can claim simultaneous performance or exercise the right of defense first; then urge the other party to make up the payment by written letter and clarify the position that "only deliver the goods in proportion to the payment received before receiving the full payment", so that the right of defense can be traced back; at the same time, keep the vouchers of stockpiling, warehousing and the other party's arrears to avoid being counter-accused of unauthorized production suspension or delay. For long-term cooperative clients, we will also suggest pre-agreeing on the corresponding nodes of installment payment and installment delivery in the contract, eliminating the ambiguity of "paying half and delivering half" from the source. For collection of payments, it can be combined with other legal means.Creditor-debtor relations and enforcement case servicesCoordinate and plan everything in an organized and efficient manner to ensure the smooth progress of the project.

IV. Practical suggestions and legal basis

The core basis is Article 525 of the Civil Code of the People's Republic of China (effective January 1, 2021) (Where the parties have mutual debts and there is no order of performance, one party may refuse to perform the other party's request before the other party performs, that is, the right of defense of simultaneous performance); Article 526 (Where there is an order of performance and the party who should perform first fails to perform, the party who should perform later may refuse to perform the other party's request, that is, the right of defense of prior performance); and Article 577 (Liability for breach of contract). Practical suggestions: When signing the contract, clarify the payment and delivery nodes and ratios; after the other party makes a partial payment, first send a written reminder and state that the goods will be delivered in proportion; retain evidence of collection and stockpiling; if no agreement can be reached, the party may claim the right of defense of uncertainty or request continued performance and compensation for breach of contract. Where performance guarantees are involved, they can be combined with other legal provisions to safeguard the legitimate rights and interests of the party.Special services and other case-related services.

5. Henglu Law Firm's Advice

The principle of "the other party pays half, and I pay half" does not automatically apply. It must be based on contractual agreements and rules of right of defense. The safest approach is to first send a letter confirming the amount of the debt and stating that payment will be made proportionally, rather than stopping delivery of all goods in silence, otherwise it may be deemed a breach of contract and result in the company being liable for damages. It is recommended that enterprises correspond the payment milestones with the delivery ratio in the contract, and formalize their position in writing when disputes arise. Never replace specific and appropriate defenses with a general statement of "if they don't pay, I won't deliver". If you need to formulate defense and collection plans, you can refer to the following materials for reference:Business and contract dispute services for enterprises.

VI. Frequently Asked Questions

Q1: If the other party only pays half of the amount, do I have a good chance of refusing to deliver the full goods?

The success of your refusal to perform depends on two factors: whether the contract stipulates the order of performance, and whether your refusal is proportionate to the unpaid debt. If the obligations of both parties are not sequential, you can claim the right of simultaneous performance to refuse accordingly; if your obligation is posterior, you can claim the right of prior performance. As long as the scope of your refusal to deliver roughly corresponds to the other party's unpaid amount, and you have given prior notice, there's a high chance of success. However, if the contract explicitly stipulates that you must deliver all the goods first, or if your refusal is obviously excessive, you may breach the contract yourself. A lawyer can help you assess the basis for your right of defense, but cannot guarantee its inevitably establishment.

Q2: To assert the right of defense, what evidence do I need to prepare?

The core evidence includes: the sales contract and payment terms; the other party's payment receipts, proving that they only paid half of the amount; proof of your inventory preparation, warehousing, or production inputs; written demand letters and records of the other party's responses; and communication evidence proving that the other party breached the contract first. The evidence should be organized around "the other party's failure to make payments" and "the party's reasonable refusal to perform," to avoid being accused of unilaterally suspending performance. It is recommended to document each demand and statement in writing to form a complete chain of evidence.

Q3: How much does it usually cost to hire a lawyer to handle such contractual disputes?

The attorney's fees are negotiated between the law firm and the client. Common charging methods include fixed fees or fees based on a percentage of the case value, with the specific terms subject to the client contract. There is no nationwide standard pricing. If the case involves large amounts, cross-border transactions, or requires property preservation, the fees will increase accordingly, and there may be third-party expenses such as litigation fees and preservation guarantee fees. It is recommended to request a detailed fee breakdown, clarify the stages of representation and whether travel expenses and litigation fees are included, and then evaluate the cost based on the amount of the dispute and the right to claim breach of contract damages.

Q4: How long does it usually take from the other party owing the money to resolving the issue?

If the focus is on sending letters of reminder and consultation, it is often possible to reach a payment or delivery-proportionate solution within several weeks to months; if the case proceeds to litigation, the first-instance ordinary procedure will be concluded within six months, and the summary procedure within three months. However, if it involves quality appraisal or jurisdiction objections, the process may be extended. Overall, it often takes several months from the occurrence of the debt to obtaining the payment or establishing rights. It is recommended to send a written reminder and keep the evidence when the other party defaults for the first time, so as to avoid delaying and exacerbating the losses.

Q5: If the other party only pays half of the total amount, what should I do in the first step?

It is recommended to proceed in four steps: First, check the payment and delivery sequence stipulated in the contract to determine which defense right is applicable; Second, send a written notice to the other party to make up the remaining payment and clarify the position that "only deliver the goods in proportion to the payment received before receiving the full payment"; Third, keep the evidence of stockpiling, warehousing, and the other party's arrears to prevent being accused of breaching the contract; Fourth, if no agreement is reached, promptly initiate litigation or arbitration and, with the help of a lawyer, claim continued performance, breach of contract compensation, or contract termination. Throughout the process, fix all statements in writing to avoid being passive due to vague refusals to deliver the goods.

This article is written based on the common judicial interpretations in the Beijing area. If the case occurs in other regions, it is recommended to consult local lawyers to verify the regional differences.

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

Disclaimer: This article is compiled based on the current effective 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.