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.
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.
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.
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.
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.
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.
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.
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.