Navigating Chinese contracts can be a daunting task, especially for foreign businesses unfamiliar with the legal and cultural intricacies of China. A well-drafted contract is crucial to protecting your interests and ensuring a smooth business relationship. However, certain terms and clauses can become pitfalls if not carefully reviewed. This article highlights key terms to watch out for in Chinese contracts, complete with examples.
1. Governing Law and Dispute Resolution
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管辖法律 (Guǎnxiá fǎlǜ) – Governing Law
Example:
Běn hétong shòu Zhōnghuá Rénmín Gònghéguó fǎlǜ guǎnxiá.
本合同受中华人民共和国法律管辖。
This contract shall be governed by the laws of the People’s Republic of China.
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仲裁 (Zhòngcái) – Arbitration
Example:
Rènhé zhēngyì yīng tíjiāo Zhōngguó Guójì Jīngjì Màoyì Zhòngcái Wěiyuánhuì zhòngcái.
任何争议应提交中国国际经济贸易仲裁委员会仲裁。
Any disputes shall be submitted to the China International Economic and Trade Arbitration Commission (CIETAC) for arbitration.
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诉讼 (Sùsòng) – Litigation
Example:
Shuāngfāng tóngyì jiāng suǒyǒu zhēngyì tíjiāo Běijīng Shì Rénmín Fǎyuàn sùsòng jiějué.
双方同意将所有争议提交北京市人民法院诉讼解决。
Both parties agree to submit all disputes to the Beijing People’s Court for litigation.
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争议解决 (Zhēngyì jiějué) – Dispute Resolution
Example:
Zhēngyì jiějué tiáokuǎn shì běn hétong de zhòngyào zǔchéng bùfèn.
争议解决条款是本合同的重要组成部分。
The dispute resolution clause is an essential part of this contract.
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调解 (Tiáojiě) – Mediation
Example:
Zài zhòngcái huò sùsòng zhīqián, shuāngfāng yīng chángshì tōngguò tiáojiě jiějué zhēngyì.
在仲裁或诉讼之前，双方应尝试通过调解解决争议。
Before arbitration or litigation, both parties shall attempt to resolve disputes through mediation.
2. Force Majeure
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不可抗力事件 (Bùkě kànglì shìjiàn) – Force Majeure Event
Example:
Bùkě kànglì shìjiàn bāokuò zìrán zāihài, zhànzhēng hé zhèngfǔ xíngwéi.
不可抗力事件包括自然灾害、战争和政府行为。
Force majeure events include natural disasters, war, and government actions.
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免责条款 (Miǎnzé tiáokuǎn) – Exemption Clause
Example:
Bùkě kànglì shìjiàn fāshēng shí, shuāngfāng kě yījù miǎnzé tiáokuǎn zàntíng lǚxíng hétong.
不可抗力事件发生时，双方可依据免责条款暂停履行合同。
When a force majeure event occurs, both parties may suspend contract performance under the exemption clause.
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通知义务 (Tōngzhī yìwù) – Notification Obligation
Example:
Fāshēng bùkě kànglì shìjiàn hòu, shòu yǐngxiǎng fāng yīng zài 7 tiān nèi lǚxíng tōngzhī yìwù.
发生不可抗力事件后，受影响方应在7天内履行通知义务。
After a force majeure event occurs, the affected party shall fulfill the notification obligation within 7 days.
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合同终止 (Hétong zhōngzhǐ) – Contract Termination
Example:
Rúguǒ bùkě kànglì shìjiàn chíxù chāoguò 30 tiān, rènhé yīfāng yǒuquán zhōngzhǐ hétong.
如果不可抗力事件持续超过30天，任何一方有权终止合同。
If the force majeure event continues for more than 30 days, either party has the right to terminate the contract.
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履约延期 (Lǚyuē yánqī) – Performance Extension
Example:
Bùkě kànglì shìjiàn dǎozhì de lǚyuē yánqī bù yīng shìwéi wéiyuē.
不可抗力事件导致的履约延期不应视为违约。
Performance delays caused by force majeure events shall not be considered a breach of contract.
3. Payment Terms and Currency
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预付款 (Yùfùkuǎn) – Advance Payment
Example:
Hétong qiāndìng hòu, yǐfāng xū zhīfù 30% de yùfùkuǎn.
合同签订后，乙方需支付30%的预付款。
After the contract is signed, Party B shall pay a 30% advance payment.
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分期付款 (Fēnqī fùkuǎn) – Installment Payment
Example:
Shèngyú kuǎnxiàng jiāng fēn sān qī zhīfù, měi qī zhīfù 30%.
剩余款项将分三期支付，每期支付30%。
The remaining amount shall be paid in three installments, with 30% paid each time.
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违约金 (Wéiyuē jīn) – Penalty for Breach
Example:
Rú wèi ànshí fùkuǎn, xū zhīfù měi rì 0.1% de wéiyuē jīn.
如未按时付款，需支付每日0.1%的违约金。
If payment is not made on time, a penalty of 0.1% per day shall apply.
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货币兑换 (Huòbì duìhuàn) – Currency Exchange
Example:
Fùkuǎn yīng yǐ rénmínbì zhīfù, huìlǜ àn fùkuǎn dāngrì Zhōngguó Yínháng gōngbù huìlǜ wéi zhǔn.
付款应以人民币支付，汇率按付款当日中国银行公布汇率为准。
Payment shall be made in RMB, and the exchange rate shall be based on the rate published by the Bank of China on the payment date.
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发票 (Fāpiào) – Invoice
Example:
Jiǎfāng yīng zài shōudào fùkuǎn hòu 7 tiān nèi tígōng zhèngshì fāpiào.
甲方应在收到付款后7天内提供正式发票。
Party A shall provide an official invoice within 7 days of receiving payment.
4. Intellectual Property (IP) Protection
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知识产权归属 (Zhīshí chǎnquán guīshǔ) – IP Ownership
Example:
Běn hétong qījiān chǎnshēng de suǒyǒu zhīshí chǎnquán guī jiǎfāng suǒyǒu.
本合同期间产生的所有知识产权归甲方所有。
All intellectual property created during this contract shall belong to Party A.
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保密协议 (Bǎomì xiéyì) – Confidentiality Agreement
Example:
Shuāngfāng yīng zūnshǒu bǎomì xiéyì, bùdé xièlòu hétong nèiróng.
双方应遵守保密协议，不得泄露合同内容。
Both parties shall comply with the confidentiality agreement and shall not disclose the contents of the contract.
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专利 (Zhuānlì) – Patent
Example:
Yǐfāng bùdé shànzì shǐyòng jiǎfāng de zhuānlì jìshù.
乙方不得擅自使用甲方的专利技术。
Party B shall not use Party A’s patented technology without permission.
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商标 (Shāngbiāo) – Trademark
Example:
Wèijīng xǔkě, yǐfāng bùdé shǐyòng jiǎfāng de shāngbiāo.
未经许可，乙方不得使用甲方的商标。
Party B shall not use Party A’s trademark without authorization.
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侵权责任 (Qīnquán zérèn) – Liability for Infringement
Example:
Rú yǐfāng qīnquán jiǎfāng zhīshí chǎnquán, yīng chéngdān quánbù qīnquán zérèn.
如乙方侵犯甲方知识产权，应承担全部侵权责任。
If Party B infringes Party A’s intellectual property rights, Party B shall bear full liability for infringement.
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