Contracts in China
How to Ask for Samples from Chinese Manufacturers?
When you buy tailor-made products in bulk from a Chinese manufacturer, you need to get the samples first.
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”).
Application of CISG in Arbitration in China: A Case Study with CIETAC
A study on how the CISG is applied by CIETAC sheds light on the ins and outs of its application in arbitration in China.
Want to Sue a Chinese Company? Do You Have a Contract under Seal?
If you don’t have a contract with the seal of this Chinese company, this Chinese company may deny having transacted with you.
Why Consistency between English and Chinese Versions of Trade Contract Matters?
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.
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.
What Is the Chinese Company Stamp and How to Use It?
In China, the official company seal or stamp is a symbol of corporate power.
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.
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 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.