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
Tag Archives: Liquidated damages
China Contracts. Why Even Bother?
Posted in Basics of China Business Law, Legal NewsI 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 NewsEvery 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 NewsSomeone 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 NewsEvery 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 NewsOne 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
"...the widely respected China Law Blog"
"Clear and compelling"
