What Should You Do If Chinese Vendors Do Not Comply with the Proforma Invoice

Federico Delgado Mora: send $ 7,700 to a company in China, to buy a product.
they sent the proforma to the terms 30% in advance, 20% against review of loading and 50% against documents, now they tell me they can not meet
to be paid in advance 50%
anyone knows how can require, legally in China to fulfill what was negotiated in the proforma

陈穆商 Morris Chen: I‘m trying to answer your inquiry. According to Chinese law, where buyer paid the fee for a deal and the seller sent the proforma as an acceptance to price, quantity, quality of the offer, the agreement deems to be established. A legally established contract is one protected by law and binds relative parties to the contract. That is to say, where a contract is formally deemed effective, either party who breaches the contract will burden the adverse consequence imposed by law, such as paying the defaulting damages or compensating the damages.

If, as you described, you have paid the money and they explicitly express their nonperformance of the agreements following receipt of the contractual amount, you have the right to demand a return of the amount; or they are obligated to perform the agreement and thus do as what the contract originally intended to do.

In the event of their neither returning your money nor continuing performance of the delivering the product, you have the right to sue them to the court, claiming whatever you are entitled to.

Jovi Tang: Well, start a international lawsuit for this? There is a law, but to enforce it takes time and money, doesn’t worth it.

Marcus Yap Teck Lee: I took back my money without talking about law but “loh”. Connect me and we shall talk more about it.

Peter McCann: There is the legal question, which was well answered by Morris Chen. There is the business question, which is ‘is it better to sue than to negotiate or to walk away.

On the business question, if the amount is small, try to negotiate and if that does give results, walk away. If the amount is large, go to China and negotiate (using Chinese professionals). I know one case in PRC where a large multinational company used a retired diplomat to negotiate.

My experience is that sometimes the other company is bad; but, often the other company may have important viewpoints that merit open discussion. Try to find a mutual solution before starting a fight. In business and life, we need more friends than enemies.

The lesson is, of course, to do research and investigation before sending money to any company, in China or your home country!

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