You must be alert to fraud when the following situations occur.
The director of the foreign company can sign.
It depends on the identity of the middleman.
When you buy tailor-made products in bulk from a Chinese manufacturer, you need to get the samples first.
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.
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”).
A study on how the CISG is applied by CIETAC sheds light on the ins and outs of its application in arbitration in China.
If you don’t have a contract with the seal of this Chinese company, this Chinese company may deny having transacted with you.
This is because conflicting clauses in the different versions will be deemed to have no effect. Therefore, you should review each clause of the Chinese contract carefully.
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.
In China, the official company seal or stamp is a symbol of corporate power.
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.
You’d better not turn your back on your deals with Chinese suppliers. You shall terminate your contract in accordance with reasonable procedures.
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.
Absolutely Yes. Anything stamped with the official company seal is considered to be on behalf of the company’s will in China.
The legal representative of the Chinese company, whose name is on its business license, can sign the contract on behalf of the company.
If a Chinese company affixed a fake official company seal when signing a contract with you, probably you are in a scam.
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.
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.