Software Development Contract Dispute Between an Xiamen Software Company and a Client

Case Summary

Plaintiff Xiamen [Software Company Name], a software technology company, and Defendant Fujian [Manufacturing Company Name], a manufacturing enterprise, entered into a "Custom Software Development Contract." The agreement stipulated that Plaintiff would develop a production management system for Defendant at a total contract price of 120 million RMB, payable in three installments. The final payment of 36 million RMB was due upon successful system acceptance. Plaintiff completed the system development, deployment, and launch according to the requirements document mutually confirmed by both parties. After 3 months of testing and usage, Defendant refused acceptance and withheld the final payment of 36 million RMB, citing functional discrepancies and system bugs. Plaintiff filed suit, requesting the Defendant to pay the outstanding development fees and liquidated damages.

Key Dispute

1.Does the software developed by the plaintiff comply with the requirements document confirmed by both parties?

2.Is the defendant's reason for refusing acceptance valid?

3.Does the plaintiff have the right to demand payment of the remaining balance and liquidated damages from the defendant?

Case Strategy

1.Fixed software development contract, requirements document, development progress log, test report, deployment record, and communication records between both parties as core evidence

2.The plaintiff has demonstrated that the system it developed fully complies with all requirements specified in the requirements document. The issues raised by the defendant regarding certain functions are either new requirements not covered in the original document or minor bugs that can be resolved through simple optimizations and do not affect the overall functionality of the system.

3.Prove that the Defendant has actually used System 3 for [number] months but refused acceptance on the grounds of minor issues, violating the principle of good faith.

4.Calculate the liquidated damages for the defendant's overdue payment based on the standard specified in the contract.

Processing Result

The court ruled that the Defendant shall pay the Plaintiff the remaining software development fees of 36 ten thousand yuan, plus overdue payment liquidated damages calculated at a rate of 0.03% per day on the principal amount of 36 ten thousand yuan from the due date until the date of actual payment; and the Defendant shall bear all litigation costs in this case.

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