How not to get caught out!

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How not to get caught out!

best place to buy generic accutane A contract is an important part of risk management and your quality assurance system. Without one you may get caught out with no where to turn if things go wrong.

source link Trading in China can be dangerous, especially when you don’t know who you are really dealing with. By taking the time to prepare a contract/s you will need to address a number of questions and provide a solution that both parties are agreeable to before you commence trade. Think of it as your guide to ensuring you tick all the boxes, as well as your action plan in the case of dispute or even worse – disaster!

In the case of a trade contract, you will need to address questions such as:

1. Who the two legal entities are?
2. When will production commence and when will it be complete?
3. What is the confirmed price and what does it include?
4. What are the agreed shipping terms, CIF, FOB, Ex-works…?
5. Who is responsible for quality assurance and do we both agree on the definition of quality?
6. Will third party inspection be relied upon?
7. What are the warranty terms and who pays for what?
8. If it all goes wrong, who will help us settle this dispute and where will it take place?

In the case of a confidentiality contract, you will need to address questions such as:

1. Who the two legal entities are?
2. Who owns the designs, logo’s or technology and who has the right to use them?
3. Who owns the tools or moulds made to produce the products?
4. Does the manufacturer understand the terms of confidentiality and do they agree to them?
5. If it all goes wrong, who will help us settle this dispute and where will it take place?

All your contracts will require revisions and a schedule should be prepared to remind you. In the case of a trade contract this revision may take place each time you place a new order.

Its not sufficient to rely on your supplier to provide a contract as legal matters are better left to the experts. The contract needs to be prepared in both English and Chinese, represent your interests and be prepared by ‘China-experienced’ lawyer. Simply googling ‘contract’ on the internet and pasting a few clauses at the end of an invoice will not do you any favours if something goes wrong. We know this from experience as many new importers come to us for help after they have been burnt and in 100% of cases they don’t have proper contracts in place.

Contracts are an important part of risk management. Don’t let anyone tell you business is done in China based on goodwill and relationship alone- this is just not good business practice.

Note: China Blueprint does not offer legal services, nor advise on legal matters. This information has been prepared purely as a guide.

Comments 1


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