Larry Helped UAE Client Resolve Dispute with Chinese Companies, Facilitating Contract Continuation
In 2022, a client from U.A.E entered into two product purchase agreements with a Qingdao based Chinese enterprise. The Qingdao enterprise, impersonating the name of a large company in XinJiang China and registered an offshore company in Hong Kong, China, signed the contracts using its offshore company and directed the client to make payments to the bank account of the Hong Kong entity.
However, upon receiving the client’s payment, the supplier only delivered the goods under the first contract but refused to perform the second contract. Despite multiple communications, the supplier refused to fulfill the second contract nor refund the payment the client has made for the second contract.
Facing this challenge, the client from U.A.E sought assistance from Attorney Larry Zhou and Associate Bryan from Landing (Shenzhen) Law Office. Upon being retained, our legal team promptly initiated investigations into the suppliers’ background, collected essential documents, and guided the client in strengthening their evidence. We discovered through an investigation of the Hong Kong company that the supplier had fraudulently used the name of the Xinjiang company, and we identified a mainland company in Qingdao operating behind the Hong Kong company. We subsequently dispatched legal letters to both the Chinese mainland enterprise and the Hong Kong company.
Upon the supplier received the legal letters, our legal team immediately engaged in direct communication with the supplier. After several rounds of negotiation, the supplier agreed to proceed with the performance of the contract, provided the client with the latest shipping schedule, and expressed their willingness to assume responsibility for any losses incurred by the client.
Upon the client's confirmation of their acceptance of the supplier's commitment to continue delivery, our team delivered comprehensive risk advisories to the client and instructed the client to undertake evidential measures regarding the quantity and quality of the goods upon receipt, with the aim of preempting potential disputes.
Ultimately, with our assistance, our client successfully reached a settlement with the supplier and obtained the goods under the second contract.
With the intervention of Landing lawyers, a significant amount of economic losses were recuperated for the client, and the cooperative relationship with the supplier was successfully reinstated.
How to recover from default suppliers? | Chinese Lawyer | Your Lawyers In China