Jiazhuang contracted with a third party for the fit-out of a karaoke venue at a contract price of RMB 7.4 million. Jiazhuang then sub-contracted the works to Wang under an internal contracting arrangement on a labour-plus-materials basis, with disputes to follow the main contract. After partial payment, Wang signed a settlement agreement fixing the price at RMB 1.3 million and a joint measurement protocol.

Issue

Whether the settlement and measurement documents conclusively fixed the sums due, and whether the sub-contractor could claim beyond them on the basis of the main contract.

Outcome

The court accepted the defendant’s case that the settlement agreement governed and dismissed all of the claimant’s requests. The judgment confirms that a signed settlement supersedes earlier contractual entitlements absent fraud or material mistake.