The situation: A foreigner pays a maintenance, decorating or IT company in advance, and the contractor stops work halfway through, refusing to complete the project or return the difference.
Applicable law: Articles 563-564 of the Civil Code (2021): fundamental breach of contract allows the injured party to rescind the contract. Article 577 requires the breaching party to fully compensate for actual damage and lost opportunity. On rescission: the advance payment is recovered plus compensation for harm from delay or non-delivery.
Typical outcome: A formal breach notice and request for rescission and refund, then court if necessary. Chinese courts issue immediate enforcement orders in civil debt cases.
📜 Civil Code (general rules) · Awareness case
Service Contract Breach — A Supplier or Contractor Who Does Not Deliver · Yalla China
🤝 Governing law: 民法典 / Civil Code Arts 509, 563-577 (Contract Breach)
You paid in advance to a contractor or service company and the work was not done. What right does Chinese law give you?
Illustrative, general educational examples — not real specific facts and not legal advice; for awareness only. For an actual situation, consult a licensed lawyer.
🎓 The lesson / takeaway
Lesson: Avoid paying the full amount in advance. Split payments into stages linked to the completion of specific work, and document every agreement in a written contract.
🕒 Updated: 16 March 2026