1. Identify the Type of Contract and Relevant Legal Provisions

• Determine the type of contract to apply the appropriate legal framework, such as:
  • Civil Code 2015
  • Commercial Law 2005
  • Related specialized laws and regulations.

2. Verify the Legal Capacity of Contracting Parties

• For individuals:

  • The individual signing the contract must have full legal capacity and civil act capacity as prescribed by law.

• For organizations:

  • Verify legal entity status (business license, corporate seal, etc.).
  • Check the authority of the legal representative/authorized representative signing the contract (title, power of attorney, scope of authority, etc.).
  • Confirm the authenticity of signatures and seals on the contract.
  • Verify compliance with licensing requirements for specific fields such as transportation, finance, accounting, law, banking, etc.

3. Review the Contract Content

• Contract subject matter:

  • Clearly and comprehensively describe the subject matter (goods, products, services, quality, warranty, exemption rates, etc.).
  • Ensure it does not violate the law or prohibited regulations.

• Price and payment:

  • Agree on clear and appropriate pricing (fixed or variable).
  • Review payment methods, deadlines, and conditions.

• Performance timeline:

  • Check the contract’s term, effective date, and conditions for extension or renewal.

• Rights and obligations of the parties:

  • Ensure full compliance with obligations to avoid contractual breaches.

• Transportation:

  • Specify transportation methods, cost responsibilities of each party, risk transfer timing, inspection processes, and complaint procedures if necessary.

• Penalties and damages:

  • Ensure this clause complies with the Commercial Law (maximum penalty of 8% of the breached obligation’s value).
  • Include obligations to notify the other party of any violations.

• Termination/Cancellation of the contract:

  • Review conditions, circumstances for termination or cancellation, legal consequences, and responsibilities of the parties.

• Force majeure/hardship circumstances:

  • Clearly define force majeure or hardship circumstances for exemption from obligations.
  • Specify measures to mitigate risks in such cases.

• Supplementary clauses:

  • Review additional clauses to protect the parties’ rights (security measures, product warranties, goods insurance, confidentiality clauses, etc.).

• Disputes:

  • Clearly stipulate the choice of commercial arbitration or court jurisdiction.
  • Ensure arbitration clauses comply with the rules of the selected arbitration center.
  • Consider location and governing law.

4. Review and Retain Contract-Related Documents

• Verify and store all documents and evidence accompanying the contract, such as:
  • Business licenses, conditional licenses, or professional practice licenses.
  • Purchase orders, framework agreements, delivery records, and evidence of asset ownership.

5. Contract Form

• Ensure the contract form complies with legal requirements: written form, notarization, or other applicable forms.

Important Notes:

• During the signing and performance of the contract, retain all contracts and related documents to serve as evidence in case of disputes.
• Archive signatures, handwritten notes, and mutual confirmations via email or written correspondence.