When drafting a contract with your supplier, you should include a forum selection clause that states, aside from how disputes will be resolved, where disputes will be resolved. Article 25 of China’s Civil Procedure code allows contracting parties to agree where they will go to settle their disputes. Some common examples are where one of the parties resides or where the contract was signed. But here’s tip. Whether you are working with one Chinese supplier or many, you may want to have the dispute in your territory. Where’s your territory? Well if you hire a lawyer to draft the contract or translate the contract, it’s best to have the forum to settle disputes near the lawyer’s office. This way your lawyer will be familiar with the procedures of the court, and the inconvenience (cost and time) of traveling to the forum will lie on the other party. This may even help dissuade someone from brining suit, or encourage settling, especially if they have to travel half way across the country.

 

1 Comment

  1. Avatar Kay Hyde on November 19, 2012 at 2:38 pm

    In having business deals contracts are very important because this is your binding agreement and this is your hold towards your supplier and to you. There are many things that you should agree upon and everything should be put into writing for clarity of your agreement.



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