CNY 12,600 Sand and Stone Supply Dispute Judgment Upheld
A dispute over unpaid sand and stone supply for a textile factory construction project in Eastern China City has been resolved by the court. The plaintiff, Mr. Wang, claimed that the defendant, Mr. Lv, failed to pay the outstanding amount of CNY 12,600 despite several written promises. The court ruled in favor of the plaintiff, ordering the defendant to pay the full sum plus legal costs.
The case originated in 2008 when Mr. Lv needed construction materials for a textile factory project in Eastern China City. He purchased sand and stone from Mr. Wang without a formal written contract. Mr. Wang delivered the materials to the construction site as requested. After delivery, Mr. Wang repeatedly asked for payment. Mr. Lv made verbal promises to pay after the project ended. On May 27, 2010, Mr. Lv issued an IOU confirming he owed CNY 12,600 for various sand and stone supplies. He later added a handwritten note on November 12, 2010, promising to pay CNY 5,000 by December 30, 2010, and the remaining balance by June 2011. He never kept these promises.
During the court hearing, the plaintiff presented the IOU as key evidence. The defendant, Mr. Lv, was properly served with a summons but did not appear in court. He also did not file any written defense. The court noted that the defendant’s absence meant he waived his right to challenge the evidence. After reviewing the IOU and the plaintiff’s testimony, the court accepted the document as valid proof of the debt.
The court found that a valid sales contract existed between the parties based on their true intentions. Mr. Wang had fulfilled his obligation to deliver the materials, and Mr. Lv was legally required to pay. The IOU and subsequent payment promise demonstrated the defendant’s acknowledgment of the debt. The court held that the defendant had no valid reason to refuse payment. Since the IOU did not indicate any intention by the plaintiff to forgive part of the debt, and the defendant provided no evidence of partial payment, the full amount was due.
According to relevant law, the court applied the principles of contract formation under the Contract Law of the People’s Republic of China. It noted that when payment terms are not agreed upon, the buyer must pay upon receipt of the goods. The defendant’s failure to pay either the promised installment of CNY 5,000 or the remaining CNY 7,600 was unjustified. The court therefore ordered Mr. Lv to pay the entire CNY 12,600 within ten days of the judgment, plus double interest for late payment if not paid on time. The defendant was also ordered to bear the reduced court fee of CNY 57.50.
This case illustrates the importance of clear written records in business transactions, especially when no formal contract exists. The court’s decision confirms that an IOU and subsequent payment promises can serve as binding evidence of a debt. Parties should note that failing to appear in court does not prevent a judgment from being entered. The ruling reinforces the legal principle that a seller is entitled to full payment once goods are delivered, even if the buyer later makes partial promises. Practical note: always keep detailed delivery notes and payment agreements to protect your rights.
Disclaimer: This article is for informational purposes only and does not constitute legal advice.