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Quick Question Friday, China Law Answers, Part XXXI

Friday, October 7, 2016 8:45
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(Before It's News)

China AttorneysBecause of this blog, our China lawyers get a fairly steady stream of China law questions from readers, mostly via emails but occasionally via blog comments as well. If we were to conduct research on all the questions we get asked and then comprehensively answer them, we would become overwhelmed. So what we usually do is provide a super fast general answer and, when it is easy to do so, a link or two to a blog post that may provide some additional guidance. We figure we might as well post some of these on here as well. On Fridays, like today.

Our China attorneys are often asked some version of the following question:

Why are you so concerned about getting the name of the Chinese party on my contract exactly right?

Answer: Because if it is wrong, the Chinese company may at some point argue (perhaps even successfully) that it is not bound by the contract.

We get this question especially often when our clients are dealing with China’s biggest companies like Baidu, Alibaba or on the other side. Our clients will ask us to draft a contract with Baidu, for example, but Baidu is really more of a brand name than a company. We then have to push our client to get from their Chinese counterparty (at whatever company it is with which they are actually dealing) the Chinese characters for the specific Baidu entity with which they will be contracting.

We will be discussing the practical aspects of Chinese law and how it impacts business there. We will be telling you what works and what does not and what you as a businessperson can do to use the law to your advantage. Our aim is to assist businesses already in China or planning to go into China, not to break new ground in legal theory or policy.

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