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  • Writer's pictureAllen

Landing Lawyer Successfully Assisted a Client to Recover Loss of USD 150,000

Larry Zhou, senior partner of Landing Law Offices China, provided a one-stop legal service for an American company, including drafting a sales contract with a Chinese supplier, communicating and negotiating, drafting a refund commitment, preparing for arbitration, etc., and finally recovered the loss of USD 150,000 for the client.

In cross-border sales transactions, buyers may encounter the following risks, such as the inconsistency between the contract signing entity and the actual seller, the buyer makes the advance payment while the seller does not deliver the goods, the seller agrees to refund the money to the buyer but delays the payment time by time, etc. So, how to avoid these risks?

In September 2020, Larry Zhou and his team from Shanghai Landing (Shenzhen) Law office accepted the engagement of a client from America to draft a sales contract. The seller's address was in mainland China, but it was actually a Hong Kong company; if there would be a dispute between the two parties in the future, it was not conducive to the property preservation against Hong Kong company in mainland China. Therefore, it is suggested that American client signed the contract with the related parties of the Hong Kong company as well, which were the mainland company and the mainland shareholder as sellers, and the related parties should bear joint and several liability in the future if breaching the contract.

In October 2020, American client paid the seller a total of USD 150,000 as advance payment; however, after receiving the advance payment, the seller admitted it could not perform the contract. Larry Zhou and his team assisted the client to negotiate with the seller as soon as possible. After several rounds of negotiation, the seller refunded a total of USD 138,000, saving most of the loss for American client.

In addition, Larry Zhou and his team were still actively recovering the remaining loss for the client. Finally, the seller agreed to pay the remaining USD 12,000 to client. Larry Zhou and his team drafted a refund commitment for the client, which clearly stipulated the deadline for refund, overdue payment interest and dispute resolution.

However, the seller did not refund the remaining advance payment in accordance to the refund commitment. On behalf of the client, Larry Zhou and his team issued a demand of letter and drafted an arbitration application to put pressure on the seller.

After the continuous efforts of Larry Zhou and his team, the seller has recently paid the remaining advance payment to American client, and has saved the client a total loss of USD 150,000.



Mobile: +86 133 4293 1852 Larry

WhatsApp:+86 133 4293 3571 Tammy

Wechat: zhoushichaozsc


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