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Tag Archives: China contract

How To Write A China Contract. Liquidated Damages.

Posted in Legal News

Many months ago, I was in on an email exchange between a couple of our China lawyers regarding a liquidated damages provision in a product development agreement where our client was paying a Chinese manufacturer a lot of money to develop a new product that could be taken into production. Our biggest concern with the… Continue Reading

China Contracts: Is That A Real Seal/Chop?

Posted in China Business, Legal News

Was cc’ed on an email between one of our China lawyers and a client that sets out what our client can do to help ensure that the seal (a/k/a chop) on its China contract corresponds with the actual seal held by the Chinese company with whom our client is conducting its China business. Thinking the… Continue Reading

Your China Contract Should Be In Chinese. Here’s Why.

Posted in Basics of China Business Law, Legal News

It is widely believed by American lawyers that their clients should do whatever they can to avoid finding themselves in a Chinese court.  This widespread belief is usually wrong.  It is usually wrong because most of the time it is the American company that will want to sue the Chinese company, not vice-versa. That being… Continue Reading

Drafting China Contracts Using Ken Adams’ “A Manual Of Style For Contract Drafting”

Posted in Legal News, Recommended Reading

Though most of the contracts my law firm writes for our China clients are in Chinese, the first draft is virtually always in English (though sometimes they are in Spanish, Russian, German or Korean).  We draft the contract in English and provide that draft to the client for their review.  Once the client has given… Continue Reading

The Three Rules For Your China Contract

Posted in Basics of China Business Law, Legal News

In several recent posts (see here and here), I have stressed that written contracts are the key to the next wave of doing business in China. I mentioned that relying on written contracts now makes sense in China because of the major improvements in the legal system that have been implemented in China over the past… Continue Reading

Signing And Chopping A China Contract. It’s Complicated.

Posted in Legal News

“Stole” the below from an email on which I was cc’ed from one of my firm’s China lawyers setting forth who from a China SOE (State Owned Entity) should sign its China contract. 1. SOEs have business licenses just like other Chinese companies. 2. Each Chinese company has only one “legal representative” (a term of… Continue Reading

Do You Know What Your China Contract Says?

Posted in Legal News

A potential client recently sent me a contract written in both Chinese and in English. The English portions were silent about the controlling language but the Chinese portion made crystal clear that the Chinese language portion would control.  And guess what? The Chinese language portion was very different from the English language portion. So different,… Continue Reading

Drafting A China Manufacturing Agreement. Watching The Sausage Get Made. Part II.

Posted in Legal News

Yesterday, I did a post, entitled, “Drafting A China Manufacturing Agreement. Watching The Sausage Get Made,” seting out many of the questions we typically ask our clients before we begin drafting their OEM agreements. A reader, Phil,  left us the following comment to that post: Can I ask about the wording of your agreements in… Continue Reading

China Contracts. Why Even Bother?

Posted in Basics of China Business Law, Legal News

I am often asked (usually right after I quote our fee) whether a China contract I am proposing to write “is even enforceable in China.” I always give the same answer, which is more or less the following. There are three reasons why it makes sense to have a contract with your Chinese counter-party, and… Continue Reading

China Legal For Business. The Basics And Nothing But.

Posted in China Business, Legal News

A few months ago, the general counsel of a company for whom we had done some China work asked me to spend a few minutes alerting her to the “typical” legal issues American companies face when they do business with China. She wanted a legal checklist to give to the executives at her company so… Continue Reading