Important points of attention when signing a contract

A contract specifically defines a cooperative relationship between two parties. When the parties' rights and obligations are not clearly stated, disputes often result. To avoid misunderstandings, it is advisable to pay attention to the following points when signing a contract.

The signed contract should be a written document

Although oral contracts are legally binding in Chinese law, signed documentation provides clear and concrete guidelines in case of dispute.

Both parties must thoroughly understand the contract's terms and conditions

The contract should be signed only when each side thoroughly understands each item. In certain circumstances, there are special procedures.

Review the contract with the other party carefully If some part of the contract is vague “ common with foreign contracts due to language and time restraints “ review it with the other party to clarify the content.

Add applicable terms and conditions to the printed form contract
With contracts of a fixed form (ie real estate sales or rental), type or print applicable additional items when necessary. The addendum will be legally binding when both sides sign beside it. Each additional page should be numbered.

Signatures are needed to validate revision or deletion of terms in a contract
Signatures are needed when the complete deletion of a term in a contract is made. Partial revisions also require signatures from both sides.

Mark the blank spaces in a contract properly
When blank spaces are left in the contract, the notation 'blank below' should be printed to prevent unauthorised revision by either side.

The contract's terms should guard against future disputes

The contract's terms should be clear, specific and concrete to avoid future disputes. Its clauses should state the stipulations, bases and remedies for future disputes.