Hotel Ordered to Pay CNY 213,045 for Unpaid Vegetable Supply
A court in Eastern China City ruled that a hotel company must pay a local vegetable supplier CNY 213,045 for goods delivered between July and December 2011. The supplier, Mr. Yu, filed the lawsuit after the hotel failed to settle the balance despite repeated demands. The court found the contract valid and the debt clearly established, ordering payment within ten days of the judgment.
Mr. Yu, an individual vegetable seller operating at a farmers market in Eastern China City, had been supplying vegetables to the defendant hotel from July through December 2011. The total value of the goods delivered reached CNY 241,045. The hotel made a partial payment of CNY 28,000 in November 2011, leaving an outstanding balance of CNY 213,045. After multiple unsuccessful attempts to collect the remaining amount, Mr. Yu initiated legal proceedings in February 2012, initially seeking the full sum but later reducing the claim to reflect the partial payment.
During the court hearing held in March 2012, Mr. Yu presented monthly statements and invoices as evidence of the transactions. The documents showed the hotel had confirmed the total debt. The court noted that the defendant had been properly summoned but did not appear at the hearing and submitted no written defense or evidence. As a result, the court treated the defendant as having waived its rights to contest the facts or challenge the evidence. The invoices and account statements were found to be consistent and credible, and the court admitted them as valid proof.
The court held that the vegetable supply contract between Mr. Yu and the hotel was based on the genuine intentions of both parties and did not violate any mandatory legal provisions. It therefore constituted a lawful and effective agreement. The evidence clearly demonstrated that the hotel owed CNY 213,045 and had failed to pay on time, amounting to a breach of contract. The court ordered the hotel to pay the full outstanding amount within ten days after the judgment took effect, and also to bear the reduced court fee of CNY 2,248.
Under relevant Chinese contract law, a party that fails to perform its payment obligations must bear liability for breach. In this case, the court applied Article 107 of the Contract Law, which holds a breaching party responsible for continuing performance or compensating for losses. The defendant’s absence did not prevent the court from proceeding, as the law allows a default judgment when a properly summoned party fails to appear without justification. The court also noted that if the hotel did not pay within the specified period, interest would accrue at twice the standard rate for delayed payment, as provided in the Civil Procedure Law.
This case illustrates the importance of maintaining clear records of commercial transactions, such as signed statements and invoices, especially when dealing with small businesses or individual suppliers. The court’s willingness to rely on documentary evidence and proceed with a default judgment reinforces the principle that parties cannot avoid liability by ignoring legal proceedings. For suppliers, prompt documentation and timely legal action are essential to recovering unpaid debts. The judgment also highlights that even partial payments do not discharge the entire obligation unless the parties agree otherwise.
Disclaimer: This article is for informational purposes only and does not constitute legal advice.