Useful Tips Before You Sign Your Next Contract in China

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:

​1. https://www.qixin.com/  
2. http://www.gsxt.gov.cn/index.html
3. https://www.tianyancha.com/

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:

​1. wenshu.court.gov.cn/ 
2. zhixing.court.gov.cn/search/ 
3. zxgk.court.gov.cn/zhixing/new_index.html 

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. 

Interview 8/29
Interviewer: Deusa Duarte, O&G Capital
Email: Deusa.duarte@olivar-greb.com
Interviewee: Laura Shang, SHanghai Know- how law Firm