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Chinese Attorney: What Can You Do If You Cannot Pay Your Sales Contract

Case Background:

A US Company (hereinafter the “Buyer”) reached a Contract of Sale with Chinese Supplier (hereinafter the “Seller”)in oder to purchase some equipment (hereinafter the “Goods”) from the Seller, the total value of which is about USD 100,000. According to the said Contract of Sale, the Seller shall delivery the Goods after the receipt of full payment from the Buyer, the side USD 100,000.


After USD 70,000 had been transferred into the account of the Seller, the Buyer intends to reduce the amount of Goods from the said USD 100,000 into USD 70,000 of the said Contract of Sale, which means the Buyer only wants to purchase the Goods in total value of USD 70,000. Thus the Buyer has no intention to transfer the remaining balance, in the amount of USD 30,000, with the negotiation with the Seller changing the content of the said Contract of Sale.



However, the Seller refused to accept the said demand from the Buyer or return the amount of USD 70,000 paid by the Buyer, demanding the Buyer continuously perform the said Contract of Sale and transferring the rest USD 30,000 has not been paid to its account, thus the Seller could ultimately delivery the Goods, in the original value of USD 100,000 to the Buyer.


In the case mentioned above, how to protect the benefits of the Buyer if the Seller refuses to change the content of Contract of Sale is a serious issue.


Here are some useful advice provided by Chinese attorney in our Landing Office: