With respect to sales contract dispute arising from failure to refund prepayment made by an electronic trading company in Shanghai (hereinafter referred to as 'Electronic Trading Company' or 'Plaintiff') to an electronic technology company in Shanghai (hereinafter referred to as 'Electronic Technology Company' or 'Defendant') for purchasing electronic component, and the Electronic Trading Company filed a lawsuit against the Electronic Technology Company to Shanghai Pudong New Area People's Court, claiming the refund of the prepayment. Veritas represented electronic trading company and won in the first instance on Oct. 8, 2019 (the date of judgment).
After accepting the Plaintiff's entrustment, Veritas first understood the basic information of the case. In this case, the Plaintiff purchased electronic components from the Defendant and the two sides did not sign a written sales contract. The Plaintiff placed an order by e-mail and paid the advance payment by bank draft, transfer, and etc.. The Defendant delivered the goods by express delivery and issued an invoice. The two sides establish a long-term cooperative relation with rolling checkout. After the adjustment of the Plaintiff's business, the two sides no longer cooperate. Afterwards, the Plaintiff repeatedly asked the Defendant to refundthe advance payment, but always failed, and therefore filed the lawsuit. After elaborate pretrial preparations, comprehensive and in-depth evidence organization, well-founded court statements and effective communication with the court, Shanghai Pudong New Area People's Court finally granted judgment in favor of the Plaintiff and ordered the Defendant to return the advance payment and assume case acceptance fee.
This case is a typical case in a sales contract dispute. The winning of the case has the following guiding significance for the sales contract: in the actual transaction, a written sales contract is required; if the payment is made by means of cheques, bank drafts, and etc., the person who receives the bill must issue a receipt. The buyer and the seller shall settle the accounts on a regular basis and properly keep the documents such as orders, receipts, invoices, and settlement statements.
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