As expats living in China, we must often sign agreements with local Chinese parties. Whether they’re regarding our rental agreements, or salaries, it is important to know how to stay properly protected.
We recently interviewed a contract lawyer, Laura Shang of Shanghai Know-How Law Firm to give us clarity on this. Here are the most important tips we learned:
Components in Each Contract
These 8 provisions should be included in the contract:
Thorough Due Diligence on the Counter-Party
Doing your own research on the other party is vital. These below resources offer a wealth of legal information about companies registered in China:
Research Past Legal Disputes
Taking the time to thoroughly research the past proceedings of the party on the other side of the deal is often overlooked. Use these resources to look up previous legal disputes:
Terminating the Contract
If the deal must be terminated, you must follow specific steps to make sure it is officially nullified. The reasons below give you ability to legally end the agreement:
These resources merely scratch the surface of what one must do to make sure they are fully protected under Chinese law. While they are a good place to start, we recommend finding an expert in the field to give you a professional opinion. There are many law offices in Shanghai that specialize in both individual and corporate contract law.
Interviewer: Deusa Duarte, O&G Capital
Interviewee: Laura Shang, SHanghai Know- how law Firm
About the O&G Research Team
The O&G Research Team holds Series 65 and Series 3 certifications and are experienced traders in international financial markets.
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