[Direct answer]In the Beijing area, the burden of proof for claiming compensation for losses is generally borne by the party who asserts the claim, that is, the party in breach of contract must prove the breach of contract, the actual occurrence of the losses, the causal relationship between the two, and the specific amount of the losses; if the party in breach of contract contends that the losses do not exist, that the losses have been reduced due to mitigation, or that the losses exceed the scope that could be foreseen at the time of concluding the contract, it shall also bear the burden of proof for its defense claims. According to the Civil Procedure Law of the People's Republic of China and relevant evidence provisions, the burden of proof is allocated based on the essential facts. It is recommended that the party in breach of contract systematically fix the contract, performance records, loss documents, and evaluation reports to prevent potential problems. For more details, please refer to the following link:Business and contract dispute resolution services for enterprises.

I. Problem Background and Typical Scenarios

The allocation of the burden of proof for compensation for losses is the key to winning or losing a lawsuit in contract disputes. Typical scenarios include: the party in compliance claiming for the loss of anticipated profits, but failing to provide a resale contract and profit calculation; the party in breach insisting that the other party failed to mitigate losses and the losses were exacerbated by itself, but lacking evidence; both parties having different opinions on the amount of losses and lacking supporting documents; and the parties mistakenly believing that "the other party should automatically compensate if they breach the contract", ignoring their own burden of proof. In practice, many claims are adjusted or even rejected due to weak evidence. Clarifying "who should prove what" is the first step in formulating a litigation strategy. For related creditor's rights that have been realized, they can be combined with other evidence to strengthen the case.Creditor-debtor relations and enforcement case servicesCoordinate and plan things in an organized and efficient way to achieve a specific goal or complete a task.

II. Key points of contention

There are three key points of the dispute. Firstly, the allocation of basic elements: the breach of contract, the loss, the causality, and the amount should in principle be proved by the party in breach of contract, which reflects the principle of "who claims, who proves". Secondly, the allocation of defense elements: when the party in breach of contract claims that the loss does not exist, has been mitigated, or exceeds the foreseeable range, it must provide evidence to support its defense, otherwise the defense will not be established. Thirdly, the standard of proof: the amount of the loss is often determined by "high probability", but if the specific amount cannot be accurately determined, the court may make a discretionary judgment. For cross-border evidence collection, it can be coordinated with relevant procedures.Financial capital and cross-border legal services involving foreign affairsEvaluate the evidence collection path.

III. Professional analysis by Hengluo Law Firm

Based on practical observations in handling contract dispute cases, the most common misunderstanding regarding the allocation of the burden of proof is that the party in compliance "emphasizes the breach of contract and neglects the losses". According to the provisions of the Civil Procedure Law on the burden of proof, the party in compliance not only needs to prove the existence of a breach of contract, but also needs to prove that the losses are real, the amount is clear, and caused by the breach of contract; otherwise, even if the breach of contract is established, the amount of compensation may be greatly reduced. Hengluo Lawyers usually adopt the "element disassembly" strategy in litigation: matching the evidence with the breach of contract, losses, causality, and amount one by one; preparing resale contracts, production schedules, and profit calculations for special benefits; and requiring the breaching party to provide evidence of its obligation to give notice and take reasonable measures to mitigate losses. In practice, we should also pay attention to the special circumstances of the reversal or transfer of the burden of proof, so as to avoid losing the case due to the misallocation of the burden of proof. For enterprise risk control, you can refer to it.Intellectual property protection and corporate legal servicesEstablish an evidence preservation mechanism.

IV. Practical suggestions and legal basis

The core basis is Article 577 (Liability for Breach of Contract), Article 584 (Scope of Damage Compensation), and Article 591 (Rules on Mitigation of Losses) of the Civil Code of the People's Republic of China (effective January 1, 2021), as well as the basic principles of burden of proof in the Civil Procedure Law of the People's Republic of China (amended on December 24, 2021 and effective January 1, 2022) and the provisions on the allocation of burden of proof and standards of proof in the Interpretation of the Civil Procedure Law of the People's Republic of China issued by the Supreme People's Court. Practical suggestions: Establish a performance file immediately upon signing the contract; Send a letter in a timely manner after a breach of contract occurs, and fix the records of communication and delivery; Quantify the losses with contracts, invoices, and third-party quotes; Prepare evidence of resale or production for the anticipated profits; Anticipate the other party's defense and collect counter-evidence in advance to avoid a gap in evidence presentation.

5. Henglu Law Firm's Advice

Providing evidence is the lifeline of compensation for losses. Never let the situation be that "you win the breach of contract case, but lose the amount of compensation". The party in compliance should maintain an awareness of evidence throughout the entire process of performance: contract, order, delivery and acceptance records, reminder letters, and classified archiving of loss documents. When claiming for the loss of profits, prepare the resale contract and profit calculation. At the same time, anticipate the defendant's possible defenses of mitigation and foreseeability, and prepare counter-evidence in advance. The party that fails to provide sufficient evidence or cannot do so will bear adverse consequences, which is an ironclad rule in litigation. If you need to organize a list of evidence, you can use the following tools to assist you:Special services and other case servicesEvaluate the shortcomings of the evidence.

VI. Frequently Asked Questions

Q1: If I file a lawsuit for damages, does that mean I'll definitely get the money if the other party breaches the contract?

No. The establishment of a breach of contract is just a prerequisite. Whether you can obtain compensation and how much you can get depends on whether you can prove that the loss is real, the amount is clear, and it is caused by the breach of contract. The court follows the principle of "who claims, who provides evidence". The party in compliance must provide evidence for the breach of contract, the loss, the causality, and the amount item by item; if the loss is vague, lacks documentary evidence, or the causality is broken, even if the breach of contract is established, the compensation may be adjusted or even rejected. Therefore, it's not uncommon to "win the breach of contract but lose the amount of compensation". It is recommended to systematically organize evidence before suing, and prepare resale contracts and profit estimates for the foreseeable benefits, so as to turn the victory in the lawsuit into actual compensation.

Q2: For a lawsuit seeking compensation for damages, what evidence do I need to prepare?

The core evidence includes: contracts and supplementary clauses (proof of obligations and breach of contract agreements), records of performance and breach of contract (delivery, acceptance, reminder letters), proof of losses (replenishment contracts, invoices, resale contracts, profit calculations, lists of losses due to suspension of work), explanations of causality, and records of mitigation measures. The organization of evidence revolves around the four points of "breach of contract facts - real losses - direct causality - clear amounts". For parts where the amount cannot be precisely determined, prepare evaluation reports or third-party quotes for the court to consider. When materials are missing, apply to the court to retrieve logistics, reconciliation, or inspection records. Never give up on reasonable claims just because the evidence is weak.

Q3: If I hire a lawyer to handle a compensation case for damages, what would the approximate cost be?

The litigation fees shall be paid in accordance with the "Measures for the Payment of Litigation Fees", calculated cumulatively based on the amount of the litigation request, and shall be borne by the losing party. In the case of partial victory, the fees shall be shared proportionally; the higher the amount of the subject matter in property cases, the lower the fee rate will be. The attorney's fees are related to the complexity of the case, the amount of the subject matter, and the attorney's qualifications. They are usually charged on a per-case, hourly, or percentage basis of the subject matter, with the specific terms subject to the contract of entrustment. There is no unified government pricing, and risk-based attorney's fees are subject to a percentage cap in civil and commercial cases involving property relations. It is recommended to estimate the provable losses before suing, compare them with the fees to evaluate the cost-benefit ratio, and actively remove unsubstantiated parts to enhance the economic efficiency of protecting rights.

Q4: How long does it typically take to reach a verdict and receive compensation in a loss compensation case?

The first-instance ordinary procedure generally concludes within six months, and the summary procedure within three months; cases with clear facts and definite subject matters are more likely to apply the summary procedure. If there is an appeal, the second-instance procedure generally takes three months. After the judgment takes effect, if the other party refuses to perform its obligations, it is necessary to apply for compulsory enforcement, and the enforcement period will depend on the situation of the property investigation and control. Overall, simple cases may take several months from filing the lawsuit to recovering the money, and complex cases may take more than a year. It is recommended to apply for property preservation to freeze the other party's accounts during the litigation to prevent the transfer of assets, shorten the actual time of recovering the money, and pay attention to the three-year statute of limitations starting from the date when the party knows that its rights have been infringed.

Q5: I want to claim compensation for the losses. What should I do specifically in the first step?

It is recommended to proceed in four steps: First, sort out the contract and the performance process, and confirm the facts and key points of the other party's breach of contract; Second, immediately fix the evidence, including the contract, orders, delivery and acceptance records, reminder letters, and communication records; Third, quantify the losses, collect replenishment contracts, invoices, resale profit estimates or evaluation reports, and record the amounts in vouchers; Fourth, anticipate the other party's possible defenses of mitigation and foreseeability, prepare counter-evidence in advance, and then sue or arbitrate according to the contract within the statute of limitations. Keep all materials throughout the process, and if necessary, entrust a lawyer to issue a list of evidence to preemptively resolve the risk of losing the case.

The above Q&A is mainly based on the judicial practice in Beijing. There may be differences in the interpretation of the law 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 relevant evidence materials, so as to avoid missing the statutory time limit.Business and commercial legal services·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.