Trade Contracts in China
Trade Contracts in China

Is It a Problem if My Counterparty Is a Chinese Trader, Not a Manufacturer?

Doing business with a large business trader may be better than directly with a small manufacturer.

Be Cautious with Contract Templates, as It May Lead Failure to Recover Debts

Be Cautious when you use a contract template, otherwise, this may lead to an awkward situation where you have to apply for arbitration to an institution out of nowhere.

Incoterms CIF: Should Buyers Pay THC at Destination Port?

No. Sellers shall pay the cost of Terminal Handling Charges (THC) according to the International Rules for the Interpretation of Trade Terms 2010 (2010年国际贸易术语解释通则) (“Incoterms 2010”).

What Happens to a Chinese Enterprise’s Shareholders if It Goes Bankruptcy?

When a Chinese enterprise is adjudged bankrupt, it generally means that its assets are insufficient to pay off all its debts, so its shareholders cannot recover their capital contributions through bankruptcy procedures.

Is CISG Automatically Applicable in China?

The answer is YES, as long as the international sales of goods contracts are concluded between parties whose places of business are in different Contracting States of the United Nations Convention on Contracts for the International Sale of Goods (the “CISG”). In such cases, the Chinese courts shall apply the Convention automatically.

How Does A Chinese Court Determine Your Right to Claim If There Is Only A Simple Contract

If the content of the purchase order or contract entered into between you and the Chinese company is very simple, Chinese court may refer to China’s Contract Law to interpret your transaction between the Chinese supplier.

Can I Ignore the Transaction If the Goods of the Chinese Supplier Are Poor-quality?

You’d better not turn your back on your deals with Chinese suppliers. You shall terminate your contract in accordance with reasonable procedures.

How Can A Chinese Court Determine the Transaction Content If there Is Only A Simple Order?

If the contents of the purchase order or contract between you and the Chinese supplier are very simple, a Chinese court may refer to China’s Contract Law to interpret your transaction between the Chinese supplier.

How to Avoid Fraud by Chinese Company: Find Trustworthy Company & Write Good Contracts

If you are required to pay a deposit or make a prepayment before you can get the goods delivered by Chinese suppliers, then you need to beware of moral hazard. The best way is to find a trustworthy company and sign a good contract.

How Do I Terminate a Contract With a Company in China?

You are entitled to unilaterally terminate a contract with a Chinese company only if the conditions for rescission as agreed in the contract or under Chinese law mature. Otherwise, you can only terminate the contract with the consent of the other party.