Court Orders Payment of CNY 100,356 for Unpaid Leather Goods
In a recent civil dispute, the court ruled in favor of a leather supplier who sought payment for goods delivered to two defendants operating an unregistered shoe business. The plaintiff, Mr. He, claimed that the defendants, Mr. Liu and Mr. Wu, failed to pay for cowhide purchases totaling over 100,000 CNY. After reviewing the evidence and applying relevant contract law, the court ordered the defendants to pay 100,356 CNY plus interest, and dismissed a portion of the claim due to insufficient proof.
The case arose from a series of commercial transactions between Mr. He and the two defendants, who jointly operated a business called Yilaisheng Shoes without formal registration. On October 28, 2010, a settlement was reached, and Mr. Wu issued a written receipt acknowledging a debt of 97,800 CNY. Mr. He then made two additional deliveries of cowhide in November 2010. The first delivery on November 6 was worth 3,665 CNY, and the second on November 11 was worth 2,556 CNY. These deliveries were received by the defendants’ warehouse keeper, Mr. Wang. The total claimed amount was 104,021 CNY, but the defendants never paid.
During the court hearing, Mr. He presented three pieces of evidence: a receipt for 97,800 CNY signed by Mr. Wu, and two warehouse receipt forms for the November deliveries. The defendants did not appear in court despite proper legal notice, and they did not file any defense or submit evidence. The court therefore accepted Mr. He’s evidence as presented, with one exception. The warehouse receipt dated November 6 lacked any signature or confirmation from the receiving party. Because of this, the court declined to accept that document as valid proof of the claimed 3,665 CNY delivery.
The court held that the contractual relationship between the parties for the sale of cowhide was lawful and enforceable. The evidence showed that Mr. Wu’s receipt of 97,800 CNY and the confirmed November 11 receipt for 2,556 CNY were sufficient to establish the debt. The court found that the defendants had breached the contract by failing to pay the total outstanding amount of 100,356 CNY. Since Yilaisheng Shoes was not registered, the individual defendants, Mr. Liu and Mr. Wu, were personally liable for the business obligations.
According to relevant law, specifically Article 159 of the Contract Law of China, a buyer must pay the agreed price for goods received. The evidence confirmed the defendants’ receipt of the cowhide and their acknowledgment of the debt. The court also applied procedural rules for default judgments, as the defendants failed to appear or respond. Interest was awarded from the date the lawsuit was filed, calculated at the central bank’s benchmark lending rate. The court rejected the claim for the unconfirmed November 6 delivery, as the plaintiff did not provide sufficient proof of the defendants’ acceptance.
This case illustrates the importance of maintaining clear and confirmed documentation for each delivery in commercial transactions. The court emphasized that receipts signed by the buyer or an authorized representative are critical to proving unpaid debts. Additionally, when a business is operated without formal registration, the individuals behind it may face personal liability for its debts. The ruling serves as a reminder for both suppliers and buyers to keep accurate records and to ensure that all deliveries are properly acknowledged.
Disclaimer: This article is for informational purposes only and does not constitute legal advice.