Hotel Ordered to Pay CNY 252,950 for Seafood Supplies
A court in Eastern China City has ordered a hotel company to pay CNY 252,950 to a seafood supplier for unpaid goods delivered over a one-year period. The judgment also requires the hotel to compensate the supplier for interest losses calculated from the date the lawsuit was filed. The case highlights the legal consequences of failing to pay for delivered merchandise under a valid contract.
The plaintiff, Mr. Li, operated a seafood business at a local market in Eastern China City. The defendant, Eastern China City Hotel Co., Ltd., purchased seafood from Mr. Li between January and December 2011. According to the plaintiff, the parties agreed to settle accounts on a monthly basis. However, the hotel did not pay the full amount. After repeated requests for payment, the hotel refused. On December 22, 2011, the parties conducted a reconciliation, and the hotel acknowledged an outstanding balance of CNY 252,950. The defendant’s employees signed sales records confirming this amount. Mr. Li then sued, seeking the principal sum plus interest from the filing date at the benchmark lending rate set by the People’s Bank of China.
During the hearing, Mr. Li presented five bound sales ledgers containing numerous invoices, each signed by staff of the hotel. The defendant did not dispute the authenticity or relevance of these documents. The hotel argued that the amount claimed was incorrect, asserting that it had paid CNY 30,000 to the plaintiff on October 8 and 9, 2011. However, the defendant provided no evidence to support this claim. The hotel also objected to the request for interest, stating that no interest had been agreed and that its financial difficulties made such a payment unfair. The court examined the evidence and found that the ledgers were credible and had full probative value.
The court held that a sales contract had been lawfully formed between Mr. Li and the hotel. Once the plaintiff delivered the seafood, the defendant became obligated to pay. Failing to do so constituted a breach of contract. Regarding the alleged partial payment of CNY 30,000, the court noted that the defendant had not provided any documentary proof. Thus, the court rejected that defense. The court also ruled that Mr. Li was entitled to interest from the date of the lawsuit, January 4, 2012, as compensation for the losses caused by delayed payment. This interest was to be calculated at the People’s Bank of China’s benchmark rate for the same period until the date the court set for performance.
According to relevant law, specifically Articles 159 and 161 of the Contract Law, a buyer must pay the agreed price at the agreed time. Where no time is specified, payment is due upon receipt of the goods. Article 107 provides that a party failing to perform its obligations must bear liability for breach, including continuing performance, remedial measures, or compensation for losses. The court applied these provisions to conclude that the hotel’s delay in paying for the seafood entitled the supplier to claim interest as damages. The court also noted that if the hotel fails to pay within the specified period, it must pay double the interest on the debt for the period of delay, as required by procedural law.
This judgment serves as a clear reminder that businesses must honor payment obligations under valid purchase agreements. Sellers should maintain signed delivery records as evidence, as the court relied heavily on them here. Claimants may also recover interest from the date of filing even if no specific interest term was stated in the contract. The hotel is now required to pay the full principal of CNY 252,950 plus interest, and bear half of the litigation costs. If the hotel wishes to appeal, it must do so within fifteen days of receiving the judgment. This case reinforces the principle that courts will enforce payment for goods delivered and compensate for financial harm caused by late payment.
Disclaimer: This article is for informational purposes only and does not constitute legal advice.