Dealing with Chinese Counterparts (2): 6 Tips when Drafting a Contract or Placing an Order
Many of our foreign clients encountered similar situation when dealing with Chinese suppliers recently — after wire transfer the payment for goods, the Chinese suppliers either kept stalling to deliver the goods, or simply could not be reached. If you are planning to deal with a Chinese supplier in the future, or continue dealing with Chinese suppliers, we suggest you should pay extra attention to the following 6 points when placing a order or entering into a contract in order to avoid the above situation.
1. The contract/commercial order that you are about to sign must include at least the following elements, and you should double check their authenticity:
1.1 the party entering the contract;
1.1.1 name of your company.
1.1.2 registered name of the Chinese company, and make sure it is a real Chinese company that is registered and currently running .
1.2 the name, standard and the amount of goods to be delivered.
1.3 the delivery date.
1.4 Contact details
It goes without saying that the above information is essential and vital to your order; you should make sure that the information on the contract/commercial order is correct. You could find some of the information at the National Enterprise Credit Information Publicity System website (http://www.gsxt.gov.cn (http://www.gsxt.gov.cn/)), although this website does not have an English version.
When signing the agreement normally the Chinese counterparts shall sealed the contract and meanwhile their legal representative (for companies), the executive partner (for partnerships) or the person authorized by the entity (always check if the person has get written authorization letter). You can check if the person signing the contract is legal representative or the executive partner at the NECIPS website again.
1.4 dispute resolution clause (we always recommend setting arbitration as the means of dispute resolution for the reasons below).