A UNIVERSITY professor has been found in breach of contract over a failed business venture with a former student.

　　In December last year, professor Wang of Guangdong Agricultural University signed a contract with one of his former students, Mr. Yu, who was president of a Shenzhen-based Company.

　　According to the contract, Wang would lease a factory from Yu for five years after paying a deposit of 10,000 yuan (US$1,200). Wang did not pay the deposit.

　　On December 31, Yu told Wang he had canceled the contract because the deposit had not been paid.

　　Knowing the contract had been canceled, Wang went ahead and imported more than US$20,000 worth of production equipment.

　　The two quarreled over the lapsed contract and the relationship worsened.

　　Wang then took the dispute before Shenzhen Arbitration Committee.

　　Yu’s defense was that Wang did not pay the deposit.

　　The arbitration committee found that since Wang had not paid the deposit, the contract was invalid. It also found that Wang should bear the loss because of his breach of contract.(Winton Dong)