An equipment company contracted to supply and install kitchen equipment for a hotel for RMB 490,000. The contract was amended in handwriting to record an 80 per cent discount on the purchaser’s own consumption at the hotel, signed by its general manager. Additional equipment worth RMB 200,000 was later supplied, recorded in a financial schedule, and the supplier issued demands for payment.

Outcome

The first-instance court ordered the hotel to pay the additional equipment cost and interest; the Shanghai No. 2 Intermediate People’s Court dismissed the hotel’s appeal and upheld the judgment.

Note

Where a contract is amended by hand, the amendment is effective if signed by a person with authority. The case is a reminder that informal annotations on a signed contract can create enforceable obligations.