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Top 7 Essential Facts You Need To Know Before Signing a Contract

According to the law, a contract is an agreement voluntarily made between two or more parties as a form of a legal binding arrangement. Contracts can be either bilateral or unilateral. In a bilateral contract, both the parties make one or several promises to each other. While in a unilateral contract, only one party makes a promise whereas the other side does not promise anything.

According to the law, the perspective of a contract in China is totally different from any other country. The Chinese have a reputation of not enduring to the contract and often changing the valid terms, even after the agreement is made and finalized. The people here think that a contract is merely to set out the basis of a business relationship.

They think that if an agreement is based on the terms and conditions, it must be enough to reach a consent regarding other specific matters. Want to know more about the contracts formed in China, get hold of the Chinese Simplified contracts documentation translation services.

In China, people coming from other countries use the different translation services widely, because a lot of them are not aware of the Chinese language. While a trial can most of the times be your only option, it can also be a result of signing a bad contract. Here are 7 things to know before signing a contract which can help protect not only your business but also your assets.

Know the Other Party

The first thing you need to know about the other party, is that if it that business is registered in the state where you are operating. You don’t want any problem to occur later on so it is better to check this matter on beforehand. In addition, if the business is not accurately registered in the state, there may be a probability of legal issues in the state. The other party also has to be licensed in the specific type of business, it is showing.

Pricing Issues

It does not matter whether you’re a buyer or a seller, the most important thing that matters is having knowledge of the amount you are either paying or getting paid. You also need to be sure when the amount is to be paid as well as where it is being paid.

A lot of this contract information is usually printed in the form of a document. Since, Chinese is not an easy language; numerous people are not familiar with it. What they can do is, hire the best document translation services, making it easier for everyone to understand.

Information about the Exact Product or Service

While this may seem very evident, there are thousands of lawsuits that are filed on a daily basis just on this issue. Be completely sure about the product the other party is selling out to you, both factually and symbolically.

Delivery of the Product

You have to specify the exact time frame when the product has to be delivered. Along with this, you also need to have knowledge about when the payment is due in regards to this time frame.

Here in China, there are several professionals who take care of the Chinese people, to the best of their level. That is why the Chinese people make use of the certified translation services thus, creating a wonderful way out for the people coming from other regions.

Condition of the Product

Make a note of the fact that the product you have purchased, if it is new or used. If the product is new, it will be originally packaged or maybe even repackaged. If you’re going to sign a service contract, you have to know who is providing this service along with his credentials.

Warranty of the Product

This is the most important point that you need to know about the product. For instance, it is a must to know what the product or service guarantees, for what period of time do they cover and what the procedure is, if you want to repair or replace the product or service.


There are several ways by which you can default on a contract. The 2 common ways are either not making a payment or not giving any performance or service. The non-payment way can include not getting paid in full, on time or not at all. Whereas the non- performance way can include not doing the job properly, not completing the job on time or not how you have expected it to be done.

In different areas, a lot of people are unknown to the Chinese language. You can take help from the Chinese Simplified Contracts Documentation translation services, if you have any more questions about the points you need to know while signing a contract.