[Direct answer]In the Beijing area, can the deposit for software development failure be claimed to be refunded in double? This is a practical issue of widespread concern among parties involved. According to the Contract Chapter of the Civil Code of the People's Republic of China (effective January 1, 2021) and the Civil Procedure Law of the People's Republic of China (amended on December 24, 2021 and effective January 1, 2022), when handling such matters, it is necessary to grasp the core elements and evidence and assert rights in accordance with the law. Whether a favorable outcome can be achieved depends on the clarity of the facts, the adequacy of the evidence, and the choice of procedures, rather than on the promise of the outcome. It is recommended to sort out the materials as soon as possible, fix the key evidence, and formulate a plan with the assistance of a professional lawyer to avoid losing rights due to exceeding the statutory time limit or insufficient evidence. For more details, please refer to the following link:Corporate commercial legal services.

1. Problem background and typical scenarios

Can the deposit for software development failure be claimed back in double the amount? Such demands are also quite common in the Beijing area. When handling such cases, it involves both substantive rights and procedural choices. Taking this into account, the following analysis will be conducted from the perspectives of substantive rights and procedural choices.Contract dispute legal servicesBased on practical experience, it is recommended that the parties first clarify their legal relationships before deciding on the path of protecting their rights or negotiating with the other party.

II. Key points of dispute

The disputes in such cases often focus on three points: firstly, the validity and formation of the contract, and whether the subject qualifications and the expressions of intent are genuine; secondly, the performance and determination of breach of contract, who constitutes a breach of contract and the degree of the breach; thirdly, the calculation of liability and losses, the adjustment of the breach of contract penalty, and foreseeable rules. Each of these points requires written evidence to support them.

III. Professional analysis by Hengluo Lawyers

Based on the practical observations of handling commercial contracts by Henglu Law Firm, many enterprises lose lawsuits due to vague contract terms or insufficient evidence of contract performance. Lawyers usually recommend that major contracts be drafted or reviewed by lawyers to clarify breach of contract and jurisdiction; that email, signature, and reconciliation records be fully preserved during the performance process; and that breach of contract be promptly notified and preservation measures be applied to prevent the other party from transferring assets.

IV. Practical suggestions and legal basis

The legal basis mainly includes the provisions on the conclusion, effectiveness, performance, breach of contract and termination of contracts in the Contract Chapter of the Civil Code of the People's Republic of China (effective from January 1, 2021) (starting from Article 463); the provisions on shareholders and transactions in the Company Law of the People's Republic of China (amended on December 29, 2023 and effective from July 1, 2024); and the provisions on jurisdiction and preservation in the Civil Procedure Law of the People's Republic of China (amended on December 24, 2021). Practical suggestions: Review the subject and creditworthiness before signing the contract; clearly define the subject matter, payment, and breach of contract in the contract terms; fix the evidence of performance and communication when disputes arise; and apply for property preservation in a timely manner. For debt recovery, it can be combined with other measures.Creditor-debtor relations and enforcement case servicesAdvance.

5. Henglu Law Firm's Reminder

In commercial contracts, the provisions and evidence determine the outcome of the dispute. There are three key points: review the other party's creditworthiness and performance capability before signing the contract; clearly define the subject matter, payment terms, breach of contract provisions, and jurisdiction clauses in the contract; and maintain communication and delivery receipts during the performance of the contract. If a dispute arises, take prompt measures to preserve evidence. If professional support is needed, you can seek assistance from relevant professionals.Special services and other case servicesThe docking team.

In commercial contracts, the terms and evidence determine the outcome. It is recommended to review the other party's creditworthiness and performance ability before signing the contract. Major contracts should be drafted or reviewed by lawyers, with clear definitions of the subject matter, payment terms, breach of contract provisions, and jurisdiction clauses. During contract performance, it is important to keep communication and delivery records, and promptly send letters of default and apply for preservation measures in the event of a breach. Disputes often focus on contract validity, who constitutes a breach of contract, and loss calculation. Evidence should be organized around three points: establishment of the contract, performance of the contract, and breach of contract. Hiring a lawyer can help systematically sort out contract and performance evidence, evaluate litigation or arbitration paths and cost-effectiveness, and avoid the risk of losing the case due to ambiguous terms or insufficient evidence of performance. For breach of contract penalties that are too high or too low, courts and arbitration institutions can adjust them according to law. The claimant should prepare evidence of actual losses to counter the defendant's possible defense of reduction, ensuring that the compensation request is supported.

VI. Frequently Asked Questions

Q1: If the developer stops the construction midway, can I get back the deposit I've paid, doubled in amount?

In order to claim double refund, three conditions must be met: the deposit has been actually paid, the developer who received the deposit fails to perform or performs in a manner inconsistent with the agreement, resulting in the failure of the contract purpose; and the amount of the deposit does not exceed 20% of the subject matter of the main contract. According to Articles 586 and 587 of the Civil Code of the People's Republic of China (effective January 1, 2021), the portion exceeding 20% does not have the effect of a deposit and can only be treated as a prepayment. If the developer is only in delay but can still continue to deliver, usually only the continuation of performance and the claim for breach of contract can be requested, and the double refund cannot be directly applied.

Q2: Before claiming double refund, which delivery and acceptance certificates need to be collected in full?

The following five sets of materials are required: 1. The software development contract and its requirements annex, as well as change orders; 2. Evidence of down payment payment and bank transaction records; 3. Phase acceptance reports, test reports, and delivery records; 4. Written notifications of demanding continued performance, announcing a work stoppage, or terminating the contract, along with delivery receipts; 5. Source code hosting or version repository submission logs. The above materials must prove that the payment in question is a down payment rather than an advance payment, and that the other party's breach of contract has rendered the contractual objectives unattainable. Chat records and emails should be exported in their original format and, if necessary, notarized.

Q3: For lawsuits seeking to recover double deposits, how are the filing fees calculated based on the amount of the claim?

The acceptance fee is calculated cumulatively according to the amount of the dispute. For cases involving less than 10,000 yuan, the fee is 50 yuan per case; for cases involving between 10,000 yuan and 100,000 yuan, the fee is 2.5% of the amount; and for cases involving between 100,000 yuan and 200,000 yuan, the fee is 2% of the amount, in accordance with Article 13 (1) of the "Measures for the Payment of Litigation Fees" (implemented on April 1, 2007). Lawyer's fees are subject to market regulation and may be charged according to the proportion of the subject matter, on a per-case basis, or in stages, in accordance with the "Measures for the Administration of Lawyer's Service Fees" (implemented on April 1, 2007). The maximum amount of contingency fees shall not exceed 30% of the subject matter value. The higher the claimed amount, the higher the absolute value of the acceptance fee will be. Before filing a lawsuit, it is necessary to first calculate the enforceable assets.

Q4: The lawsuit demands double repayment. What is the time limit for the first-instance trial?

The time limit for the first-instance trial of ordinary procedures is six months from the date of filing, and for summary procedures, it is three months, in accordance with Articles 152 and 161 of the Civil Procedure Law of the People's Republic of China (effective January 1, 2022). The statute of limitations for claims for the return of the deposit is three years, calculated from the date when the plaintiff knows or should have known that his rights have been infringed, in accordance with Article 188 of the Civil Code of the People's Republic of China (effective January 1, 2021). If the case involves the appraisal of software functions, the appraisal period will not be included in the time limit for the trial, and the actual period will be significantly extended. Therefore, when suing, the plaintiff should allow for this additional time period.

Q5: We found that the developer has gone bankrupt. Which written notice should we send first to formalize the breach of contract?

Today, I will do three things first: First, check whether the deposit exceeds 20% of the total contract price. The excess part will not be included in the base for double refund; Second, send a written reminder to the developer, stating the deadline for resuming development and delivery. If the deadline is exceeded, the contract will be terminated and double refund will be claimed. Send it by express mail and keep the receipt; Third, export the emails of requirement changes, chat records, and payment vouchers, and arrange them in a timeline by date. After the expiration of the reminder period, I can sue them. If I find that the other party has transferred equipment or accounts, I will apply for property preservation when suing them.

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.Business and commercial legal services·Beijing Henglu 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.