On May 20, 2024, Attorney Yi Dingxing’s lawyer–enterprise integration team represented a case in which two former lovers, after breaking up, ended up taking each other to court in a legal battle over their relationship.
1
Case Background
In this case, the plaintiff and the defendant were once close friends and romantic partners, and they lived and worked together from 2018 to 2021. The defendant, acting as the general agent for a micro-business platform, jointly operated with the plaintiff businesses including a clothing store and a beauty and wellness center. Although the parties entered into a cooperation agreement, only the defendant signed it, and the two parties discussed the terms of the cooperation in their WeChat chat records.
Since the breakdown of relations between the two parties in 2022, the plaintiff has coerced the defendant into signing a promissory note for RMB 300,000 through threats. In 2023, the plaintiff recharacterized the expenses incurred from their joint business operations as a loan and filed a lawsuit against the defendant on the grounds of private lending, seeking repayment of a total of RMB 1 million, comprising principal and interest.
Two
Legal Analysis
1. Determination of Partnership Relationships
According to Article 967 of the Civil Code of the People's Republic of China, partners shall jointly bear the risks and share the profits of partnership affairs. In this case, the plaintiff and the defendant jointly operated a business, and their WeChat chat records contain discussions regarding their cooperation, which is sufficient to establish that a partnership exists between the two parties.
Although the parties did not jointly sign the cooperation agreement, pursuant to Article 502 of the Civil Code, the contract is deemed to have been concluded when the expressions of intent of both parties are consistent; the WeChat chat records may serve as evidence of such expressions of intent.
2. Capital Investment and Return
According to Article 970 of the Civil Code, partners’ contributions to partnership affairs shall be subject to the agreed-upon distribution of profits and allocation of losses. In this case, the funds invested by the plaintiff have already been consumed and returned through methods such as distribution of goods, personal living expenses, and profit-sharing during the course of the joint operation, and therefore do not need to be repaid again.
3. Legal effect of an IOU
According to Article 146 of the Civil Code, a contract entered into by one party through fraud or coercion, thereby causing the other party to conclude the contract against its true intention, is void. In this case, the defendant issued the promissory note under duress from the plaintiff, which does not reflect its true intention and should therefore be deemed invalid.
Three
Agent’s and Counsel’s Arguments
1. The parties are in a partnership, and the funds contributed by the plaintiff have already been consumed and returned during the course of their joint business operations; therefore, no further repayment is required.
2. The promissory note issued by the defendant was written under duress from the plaintiff and does not reflect the defendant’s true intention; therefore, it should be deemed invalid.
Four
Evidence materials
The evidence in this case comprises over 1,500 pages, meticulously compiled through the collaborative efforts of the team’s lawyers and the client over countless days and nights. The evidence includes, but is not limited to, the cooperation agreement signed by both parties, WeChat chat records, bank transfer records, and business accounting records, which fully substantiates the partnership between the two parties as well as the details of capital contributions and repayments.
Five
Court proceedings situation
The court hearing lasted from 3 p.m. to 7 p.m., during which both sides debated key issues such as the partnership relationship, capital contributions and their repayment, and the legal validity of the promissory note. The judge has gained a general understanding and formed an initial assessment of the case. Due to time constraints, the hearing could not be completed this time, and the court is adjourned to schedule a second hearing at a later date.
In summary, the plaintiff’s claims lack both factual and legal basis; the court is therefore requested to dismiss the plaintiff’s lawsuit in accordance with the law.
lawyer Introduction
Lawyer Yi Dingxing
Full-time lawyer at
Senior Corporate Compliance Officer
Business areas
Corporate legal counsel, corporate compliance, corporate governance, civil and commercial disputes, labor disputes, criminal matters, etc.
Classic cases or specialized services:
1. In a second-instance case involving a partnership contract dispute related to Hong Kong, we acted on behalf of the defendant, leveraging legal strategies to reverse the unfavorable situation and ultimately ensure that our client bears no liability. The court dismissed all claims brought by the plaintiff and upheld the original judgment.
2. In a dispute over a sales contract, one week before the first-instance court hearing, through the application of legal techniques, business acumen, and negotiation skills, a settlement was successfully reached, recovering RMB 2 million in outstanding payments, with the defendant bearing all litigation costs, attorney fees, and preservation fees. (Total time:
45days)
3. Due to the pandemic, a large number of security service personnel could not be reassigned. On behalf of a state-owned enterprise’s security service company, I handled a collective labor lawsuit involving nearly 400 individuals, and all their claims were properly resolved.
4. Represented a district security service company in a personal injury compensation dispute and represented an eyewear technology company in a dispute over the failure to sign a written employment contract, successfully fulfilling all client demands in both cases.
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Zhiheng · Introduction
