Coal Supply Dispute Leads to Judgment for CNY 18,000
A coal supply dispute between a company and an individual buyer has resulted in a court order for payment of outstanding debt and interest. The Eastern China City court ruled that the defendant must pay CNY 18,000 in unpaid coal costs, plus interest calculated from the date the lawsuit was filed. The case highlights the legal obligations of buyers under valid sales contracts, even when they fail to appear in court.
The plaintiff, Eastern China City Coal Co., Ltd., originally known as Eastern China City Zhengda Fuel Chemical Co., Ltd., supplied coal to the defendant, Mr. Li, for his business operations. The total purchase price was CNY 26,000. On February 8, 2005, Mr. Li signed a payment agreement acknowledging the debt. He later paid CNY 8,000 in installments but left a balance of CNY 18,000 unpaid. After multiple demands for payment failed, the company filed a lawsuit in February 2012 seeking the remaining amount plus interest at the bank’s benchmark lending rate from the date of filing until full payment.
At the court hearing on March 20, 2012, the plaintiff presented two key pieces of evidence. The first was a business registration change document showing that the company had changed its name from Eastern China City Zhengda Fuel Chemical Co., Ltd. to Eastern China City Coal Co., Ltd. in July 2006. The second was the signed payment agreement dated February 8, 2005, which recorded the total debt of CNY 26,000 and confirmed that CNY 8,000 had been paid, leaving CNY 18,000 outstanding. The defendant, Mr. Li, was properly served with the complaint and evidence but did not appear in court or submit any written defense. The court noted that failure to attend constituted a waiver of the right to challenge the evidence.
The court found that the evidence presented by the plaintiff was lawful in source and form, authentic in content, and relevant to the facts in dispute. The court accepted the plaintiff’s admission that the defendant had already paid CNY 8,000. Based on the payment agreement and the uncontested facts, the court concluded that the sales contract between the parties was valid, as it reflected mutual consent and did not violate any legal prohibitions. The defendant’s receipt of the coal and the subsequent written acknowledgment of the debt established the remaining liability of CNY 18,000.
Under applicable Chinese contract law, a buyer is obligated to pay the agreed price for goods received. The court referenced Article 107 of the Contract Law, which holds that a party failing to perform contractual duties must bear liability for continued performance or damages. Articles 159 and 161 further require the buyer to pay the full price at the agreed time. Since the defendant had acknowledged the debt and made partial payment, the court ruled that the remaining balance was due. The court also awarded interest at the benchmark lending rate from the date of the lawsuit, as a measure of compensation for delayed payment.
The court issued a default judgment because the defendant, despite proper legal notice, did not appear. The order requires Mr. Li to pay CNY 18,000 plus interest within ten days of the judgment taking effect. If payment is delayed, additional interest will accrue at double the rate. The court also ordered the defendant to bear the reduced case acceptance fee of CNY 130. This case serves as a reminder that written payment agreements are enforceable, and failing to respond to a lawsuit does not prevent a court from entering a judgment. Parties in commercial transactions should keep clear records and respond promptly to legal proceedings.
Disclaimer: This article is for informational purposes only and does not constitute legal advice.