Clients often ask, “My supplier is not delivering goods, causing me significant losses. My downstream customers have left, and I’ve lost profits. My reputation in the local market is tarnished. Can I claim compensation?”
 
The answer is yes.
 
According to Chinese law, if a supplier fails to deliver, it violates the agreement between you. If you have a contract that clearly specifies liquidated damages for such breaches, you can demand compensation from the supplier as per the contract terms. If there is no contract between you or if the liquidated damages specified in the contract are insufficient, we can assist you in claiming compensation under Chinese law.
 
The compensations you can claim include:

1.Request a refund of the payment already made.

2.Demand compensation for your losses, including actual damages and loss of expected profits.

3.Pursue the payment of liquidated damages based on the agreement , and so on.

Regarding the second point above, claiming compensation for actual losses, these actual losses could be expenses incurred for shipping goods or lost profit due to the situation. Please note that you need to provide evidence to substantiate your losses, whether actual or potential profit losses.
 
Regarding the third point above, if liquidated damages are agreed upon in the contract, you can demand compensation from the supplier for actual losses, lost profits, and liquidated damages. However, if the agreed liquidated damages exceed your actual losses by more than 30%, the excess amount may not be supported by law.
 
Concerning the above point 3, under the circumstances where the parties to a contract agree on liquidated damages, you can seek actural losses, acquirable interest losses, as well as liquidated damages. But when the agreed liquidated damages exceed 30% of your losses, the court is likely to support the amount of 30% of your losses. If there is no agreed liquidated damage, you can only seek actural losses and acquirable interest losses.
 
The above is the compensation that you can claim in the lawsuit according to Chinese law. We have successfully assisted many clients to get the maximum benefit they can get, and have fully protected their rights and interests.

If you also have the above situations, please do not hesitate to contact our professional lawyers.