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Tag Archives: Liquidated damages

You Can’t Make A Good Deal With A Bad Chinese Company

Posted in China Business, Legal News

The title is stolen from the Warren Buffett line, “You can’t make a good deal with a bad guy, regardless of any piece of paper. And it is so true. Our China lawyers are always telling our clients the following: Legitimate Chinese companies do not want to get sued. In our experience, they are even… Continue Reading

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

In Which We Turn You Into A China Lawyer. NOT!

Posted in Legal News

Got the following message on linkedin a few weeks ago: Been following [China Law Blog] for about 8 or 9 months — it’s been helpful as I’ve been setting up a foreign branch here (sourcing appliances for overseas), preparing employment contracts, renegotiating OEM deals, etc. The site is by far the most useful, practical, concise… Continue Reading

China Contracts Make Sense

Posted in Legal News

I am constantly asked whether it makes sense to bother having a written contract with a Chinese company.  This question is usually followed by the statement that Chinese companies “never follow their contracts” or that “it is impossible to enforce a contract in a Chinese court, anyway.” I always give the following answer: It absolutely… 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

How Not To Lose Your Molds In China.

Posted in China Business, Legal News

Every other month or so, we get a harried call from someone wanting our help in “getting their molds” back from their Chinese supplier. Though I know this cannot be the case, it does seem that nearly every time a foreign company decides to terminate its Chinese manufacturer, the Chinese manufacturer refuses to return the… Continue Reading

Good China Patent Infringement Case? Tell Me Lots More.

Posted in Legal News

Someone called KAS just left us the following comment: We have a pretty blatant patent infringement where the Chinese manufacturing company (with whom we have a contract) has sold the product to Australia. Our goal is to shut down the sales in countries outside of China, e.g. Australia. Under these circumstances, would it make any… Continue Reading

Want Your China-Based Molds? You’re Probably Too Late For That.

Posted in Legal News

Every few months we get a frantic call from someone wanting our “immediate” help in getting them their molds back. These situations usually present themselves as follows: Small to mid-sized company (“SME”) has spent $25,000 to $250,000 building a mold(s) for manufacturing their product in China. SME provided this mold to its one Chinese supplier… Continue Reading

China Manufacturing Agreements. Make Liquidated Damages Your Friend.

Posted in Legal News

One of the hallmarks of a good China OEM Contract is that it provides for very specific penalties if the Chinese manufacturer fails to abide by its crucial terms. These penalties will typically be in the form of a liquidated damages provision, which Wikipedia defines as follows: Liquidated damages (also referred to as liquidated and… Continue Reading