What If the Chinese Supplier Asks You to Pay to Different Bank Accounts?
When you make payments to Chinese suppliers, they may ask you to pay to several different bank accounts that may not belong to themselves.
Trade Contracts in China
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.
Do I Need to Get the Chinese Company to Stamp the Contract?
Absolutely Yes. Anything stamped with the official company seal is considered to be on behalf of the company’s will in China.
Who Can Sign On Behalf of the Chinese Company?
The legal representative of the Chinese company, whose name is on its business license, can sign the contract on behalf of the company.
How to Identify a Fake Company Seal?
If a Chinese company affixed a fake official company seal when signing a contract with you, probably you are in a scam.
How Should I Sign a Contract With a Chinese Supplier?
The most important thing is to get the Chinese company to stamp the contract. In addition, it is better to have the contract also signed by the legal representative whose name is on the company’s business license.
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.
Can I Claim Compensation for the Loss That I Compensate My Customers All Caused by Chinese Supplier’s Fraud or Breach of Contract?
You should state in your contract such loss may be incurred in advance. As such, at least you should inform the supplier of such loss in the course of execution of the contract and seek his/her consent.
Can I Sue the Chinese Supplier Only With Emails Instead of a Written Contract?
Chinese courts prefer to accept written contracts with the parties’ signature.
However, with certain preparations made, contracts and orders confirmed by emails may still be accepted by Chinese courts.
3 Things You Have to Know About How Chinese Judges Think in Commercial Litigation
Chinese judges lack commercial knowledge, flexibility and time to understand transactions beyond the contract text.
How Do the Chinese Courts Interpret Commercial Contracts?
Chinese judges like to see a formal contract with well-written terms signed by both parties. In the absence of a contract, the court may accept purchase orders, emails, and online chatting records as a written informal contract.
What if a Chinese Supplier Does Not Deliver the Products?
You probably want to terminate the contract and get a refund or even compensation.
Execute a Contract With a Chinese Company: Which Language Is Better?
You will need a bilingual contract, preferably with the same content in both languages.
Execute a Contract with a Chinese Company: How to Make it Legally Effective in China
You shall have the Chinese company stamp on the contract and have its legal representative sign hereon.