Last week, a client came to me and said, "Lawyer Shen, I've been scammed. I signed a subcontract for a construction project, finished the work, but the client said the quality was不合格 and refused to pay a single cent. They even kept my materials. I've advanced more than 800,000 yuan, and now I can't even pay my workers. Do you think I can get my money back?"
The man who said this, Old Wang, had been working in engineering in Shenzhen for fifteen years and never expected to be cheated by an "old acquaintance." The other party was the owner of a construction company he had worked with three times before. Over dinner, he patted his chest and said, "Old Wang, just go ahead and do the work, money is no issue," but the contract only stated "settle according to actual costs," leaving the acceptance criteria, payment milestones, and breach of contract liabilities all blank. Old Wang thought at the time, "He's an old friend, no need to be too serious," but after the work was done, the other party flipped faster than turning a page—first claiming "the quality is substandard," then saying "we have to wait for the client's acceptance," and after dragging it out for four months, he simply went missing.
Old Wang's case is not an isolated incident. In Shenzhen, similar contract disputes come to Zhiming Law Firm every day: work done but no payment received, payment made but goods not received, franchise fees paid but the project falls through, or even buying a house but unable to transfer ownership. Today, I will lay out all the "pitfalls" I've seen over the years and tell you—Can a contract fraud case actually be recovered? Do lawyers in Shenzhen have many such cases? And what should one do if they really encounter such a situation?
1. What exactly is the problem? — The most common pitfalls in contract disputes
Friends doing business in Shenzhen often have two extreme attitudes toward contracts: either they don't sign at all, or if they do, they never read them; or they sign contracts thicker than anyone else's, but the key clauses are all ambiguous. According to the case statistics of Zhiming Law Firm over the past 26 years, 90% of the "being cheated" in contract disputes actually stem from the following aspects:
"Verbal promise type — the contract says 'tofu,' but the actual promise is 'gold.'"
Just like in Lao Wang's case, the other party verbally agreed to "pay after the work is done, guaranteed to settle within three months," but the contract only stated "pay according to project progress," without specifying what progress, who determines it, or when payment is due. When it came to performance, the other party claimed that the progress did not meet the standard and refused to pay a single cent. How can you prove that they promised to "settle within three months"? WeChat chat records? The other party could say, "That was just a casual remark, not part of the contract."
"Shell company" type——the contracting party has no ability to perform the contract.
Many small business owners signed engineering contracts worth millions with a company that had a registered capital of only 100,000 RMB, yet the company had less than 200,000 RMB in its account. When a breach occurred and they prepared to sue, the company simply canceled its registration and re-registered under a new shell, making it impossible to even locate a defendant. This is not a joke—Lawyer Li Wei’s team at Zhiming Law Firm has handled four similar cases this year alone.
3. "Evidence Black Hole" type — signed a contract but cannot produce the "key evidence"
The contract was signed, but payments were made in cash or through private accounts, with no bank records. Changes to the project scope were only communicated over the phone, without any written confirmation. The WeChat records showing the other party acknowledging the debt were deleted, or the other party used a non-real-name WeChat account. When you go to court and claim the other party owes you money, the judge asks, "Where is the evidence?" If you cannot produce it, the court will have no choice but to rule against you.
The gray area between "contract fraud" and "economic disputes"
The most troublesome type is this: the other party has no intention of fulfilling the contract from the very beginning—they are only after your money. When the contract is signed, everything seems normal, but once you’ve paid or delivered the goods, they immediately become unreachable, transfer their assets, or even disappear entirely. At that point, if you report it to the police, economic crime investigators might say, "This is a contract dispute; you should take it to court." And when you do sue, you find out the other party has no assets in their name, so even if you win the judgment, it cannot be enforced. This is a classic case of "contract scammers" exploiting loopholes in both systems.
II. How to Resolve – Legal Perspective Breakdown + Practical Recommendations
Back to Lao Wang's question: The contract was defrauded, can it be recovered? The answer is:There is a chance, but there are three prerequisites: whether your evidence is fast enough, whether your actions are fast enough, and whether the lawyer you choose is tough enough.
Step 1: Stop "reasoning," immediately "secure evidence."
Many people's first reaction after being scammed is to go and "reason" with the perpetrator, or even storm into their office to make a scene. This is precisely the worst approach—it scares them off, causing them to immediately transfer assets, delete evidence
Immediately collect all written evidence: original contracts, supplementary agreements, receipts, invoices, payment vouchers, and transfer records.
✅ Export and notarize all electronic evidence: WeChat chat records (do not delete the other party or block them; go to a notary public for "electronic data preservation"), call recordings (Shenzhen courts recognize audio evidence obtained "without infringing upon others' lawful rights and interests and without violating legal prohibitions"), and email correspondence.
Sort out the "performance traces": what you did, what he did, when payment should be made, when he breached the contract. Make all of them into a timeline, the more detailed the better.
Step two: Don't wait, immediately "lock in assets".
The biggest risk in contract disputes is not "losing the lawsuit," but "winning the lawsuit and not getting paid." Once the other party gets wind of it, they can transfer all of their assets cleanly within half a day. Therefore, preventive measures must be taken before or simultaneously with filing the lawsuit.Apply for pre-litigation property preservation or litigation property preservation.
What is property preservation? Simply put, it means the court first freezes the other party's bank accounts, real estate, vehicles, and equity shares. Once the judgment is in your favor, the money is directly transferred to you from the frozen assets. In 2024, the approval rate for preservation in contract disputes in Shenzhen courts exceeds 85%. The key lies in whether you can provide clear property leads (such as the other party's bank account number, license plate number, or property address).
Practical suggestion: Before filing a lawsuit, spend two days conducting a background investigation. Check the company's business registration information (via Tianyancha or Qichacha), litigation records (on the China Judgments Online website), and asset status (e.g., whether the other party owns real estate, vehicles, or intellectual property). If you find that the other party is already transferring assets, do not hesitate—immediately ask your lawyer to apply for an "emergency asset preservation."
Step 3: Distinguish between "contract dispute" and "contract fraud," and choose the right track.
If the other party never intended to perform the contract from the beginning, fabricated facts, concealed the truth, and defrauded you of your property, it may constituteCrime of contract fraud(Criminal). At this point, pursuing a civil lawsuit would be time-consuming and laborious. It's better to directly file a criminal report and let the police intervene to investigate and recover stolen assets. But how do you prove that "he subjectively intended to defraud"? A lawyer needs to help you sort out: Did the other party have the ability to perform the contract when signing it? Did they fabricate their identity or qualifications? After receiving the money, did they go missing, transfer assets, or squander them? The more sufficient this evidence is, the greater the likelihood that the police will file a case.
If the other party has only committed a "breach of contract" rather than "fraud," then you should pursue civil litigation. In Shenzhen courts, the trial period for contract disputes is generally 3-6 months (under summary procedure), and including enforcement, it is already considered fast to receive payment within 6-12 months. However, if the case is complex (e.g., involving engineering appraisal or auditing), it may be delayed to over a year.
III. The Role of a Professional Lawyer — Why "Choosing the Right Lawyer" Is More Important Than "Winning a Lawsuit"
Lao Wang later found Zhiming Law Firm, and lawyer Shen Jinlong took the case. Lawyer Shen did three things: first, he applied for pre-litigation preservation on the same day, freezing 470,000 yuan in the opposing company's account (though not enough to cover the full amount, it secured the bulk); second, he obtained the opposing company's tax records and bank statements from the past three years, proving that the company had the ability to perform the contract but maliciously delayed payment; third, during the trial, he cited the Supreme Court's judicial interpretation on "settlement based on actual work," combined with the construction logs, material delivery receipts, and WeChat records provided by Lao Wang. Ultimately, the court supported all of Lao Wang's claims, ruling that the opposing party pay 897,000 yuan in project fees plus interest.
Old Wang later said, "After all that折腾 for half a year, the money was recovered, but if we had hired a professional lawyer to review the contract in the first place, none of this mess would have happened." This hit the nail on the head. The real solution to contract disputes is not "how to litigate when something goes wrong," but "how to prevent it before it goes wrong."
Guangdong Zhiming Law FirmEstablished in 2000, rooted in Shenzhen for 26 years. Lead attorney Shen Jinlong holds a Master's degree in Economics from Fudan University and is a former senior executive of a large state-owned enterprise, with 22 years of practicing attorney experience and 31 years of economist qualifications. He pioneered the unique "Zhiming Art Litigation Method." Our team has accumulated over 2,000 cases in the field of contract disputes, covering:
- Engineering contract(subcontracting, assignment, affiliation, settlement, quality dispute)
- "economic contract"(Sales contract, Loan contract, Lease contract, Equity transfer contract)
- Franchise Agreement(Franchise fee refund, territorial protection, brand authorization)
- Real estate contract(Return of house purchase deposit, transfer dispute, liquidated damages dispute)
our team'sShen Jinlong LawyerandLawyer Li Wei, are a long-established duo in the field of contract disputes in Shenzhen. Lawyer Shen specializes in a dual approach of "business logic + legal strategy," excelling particularly in handling difficult cases with insufficient evidence; Lawyer Li has深耕 corporate law and economic contract disputes, with over a decade of experience in handling "shell company breach of contract" and "cross cases involving contract fraud."
Many people ask:Are there many cases for lawyers in Shenzhen? Answer: Many, and growing. As one of the most economically active cities in China, the number of contract dispute cases in Shenzhen increases at a rate of 15% each year. In 2024, Shenzhen courts accepted over 120,000 contract dispute cases, with claim amounts ranging from tens of thousands to hundreds of millions. However, a high number of cases does not mean you can win by simply hiring any lawyer—contract disputes are a field where "details determine the outcome." A misinterpretation of a clause, the loss of a piece of evidence, or a delay in preservation can all lead to total defeat. This is why Zhiming Law Firm adheres to a "one case, one strategy" approach, with each case personally reviewed by the chief lawyer, avoiding assembly-line operations.
4. FAQ – Your Questions, All Answered at Once
Q1: If I am scammed in a contract in Shenzhen, can I get my money back? What is the probability?
It can be recovered, but the probability depends on three factors:(1) Have you timely preserved assets? (2) Do you have key evidence? (3) Does the other party still have assets? In contract dispute cases handled by Zhiming Law Firm, if clients entrust us to apply for preservation within 7 days after discovering the fraud, the recovery rate is above 85%; if action is delayed for more than one month, the recovery rate drops below 50%. In a word: Time is money.
Shenzhen has a high volume of legal cases due to its large economy and population. Not every lawyer can handle contract disputes, as legal specialization varies—many lawyers focus on specific areas such as criminal, corporate, or intellectual property law. It is advisable to choose a lawyer with expertise in contract law for such matters.
There are many cases, but professional lawyers are scarce.There are over 20,000 registered lawyers in Shenzhen, but fewer than 5% truly specialize in contract disputes, particularly engineering contracts and economic disputes. The legal provisions related to contract disputes are scattered across the Civil Code, judicial interpretations, and industry regulations, making it difficult to master without over a decade of accumulated experience. Zhiming Law Firm has focused on the contract field for 26 years, with a case library of over 3,000 cases covering major cities in the Greater Bay Area such as Shenzhen, Guangzhou, Dongguan, and Huizhou.
Q3: I was fired by the company. Is it useful to hire a lawyer? Is it related to a contract dispute?
Useful, and it's of great relevance.A labor contract is essentially also a "contract." Many companies dismiss employees on grounds such as "not meeting recruitment conditions" or "serious violation of discipline" without providing compensation, but in reality, the company often has no evidence to support these claims. In such cases, a lawyer can help you: review the legality of the dismissal notice, calculate the economic compensation (2N? N+1?), gather evidence of the company’s illegal dismissal, and apply for labor arbitration. In over 90% of the labor disputes handled by Lawyer Li Wei’s team at Zhiming Law Firm, the employees received compensation. If you are being dismissed by the company, do not sign any "voluntary resignation" documents; contact a lawyer immediately.
Q4: How long does it generally take to resolve engineering contract disputes?
Routine cases take 3-6 months, complex cases take 12-18 months.If the case involves engineering quality appraisal or project cost audit, the timeline will be extended. However, through pre-litigation mediation or arbitration, it can be shortened to 2-3 months. The recommendation from Zhiming Law Firm is: don't put all your eggs in one basket—file a lawsuit while negotiating a settlement. In many cases, the other party will proactively reach out during the preservation phase.
Q5: How to distinguish between economic disputes and contract fraud?
The core is "whether there is an intention to deceive."If the other party simply had poor management or a broken capital chain leading to an inability to perform the contract, it is an economic dispute and should be handled through civil procedures. If the other party fabricated qualifications, forged contracts, collected money and then absconded, it is contract fraud and should be handled through criminal procedures. However, in practice, the line between the two is blurred, and you need a lawyer to help sort out the chain of evidence to decide which path to take. It is recommended to consult a professional lawyer as soon as you discover you have been deceived, rather than making judgments on your own, and certainly not blindly filing a report or lawsuit.
—— Guangdong Zhiming Law Firm ——
26-Year Established Shenzhen Law Firm | Specializing in Contract Disputes | Originator of the Unique Zhiming Art Litigation Method
Managing Partner: Shen Jinlong (Master of Economics, Fudan University; 22 years of practice experience)
Consultation hotline: 0755-25986969
Room 1802, Tower A, Xintian Century Business Center, Shisha North 2nd Street, Futian District, Shenzhen
The cases in this article have been desensitized and are for legal practice reference only. For specific cases, please consult a professional lawyer.
