What compensation can you claim against the Chinese suppliers who did not deliver goods?
We have met a lot of clients who purchased goods from Chinese suppliers but could not get the goods because the Chinese suppliers did not deliver the goods. After multiple unproductive talks, our clients usually had no option but to file claims against the Chinese suppliers.
If you bring a suit in China, what compensation will you get from the Chinese suppliers? You would probably love to raise the following claims against the opposite party:
To refund the payment that you have already paid;
To compensate your losses caused by the breach of contract, including the interests receivable after the performance of the contract;
To pay liquidated damages if a clause regarding the liquidated damages is included in the contractual terms between you and the opposite party.
In terms of the above point 2, the “losses caused by the breach of contract” can be the deposit you have paid or other expenses relating to contracting. With regard to the “interests receivable after the performance of the contract”, let us give you an example first. Let’s say your purchase cost is USD 5,000 and you are going to sell the goods with a price of USD 8,000. Then price differences are the “interests receivable after the performance of the contract”. To be brief, the “interests receivable after the performance of the contract” is the profits that you probably could earn if there was no breach of contract. Please kindly note that you are supposed to provide evidence to prove your losses, either your actural losses or acquirable interest losses.