How to avoid contract dispute
Original: Wang Gang, Australia, lawer Australian Law Pioneer, 2017 / 08 / 01
Business litigation is expensive and lengthy, and the outcome is unclear. In order to avoid commercial litigation, it is necessary to do well the basic skills before signing the contract. The following is a summary of law to avoid contract disputes for readers' reference.
1. Conduct an investigation into each other. Investigate each other's creditworthiness, finances, and involvement in economic disputes before signing the contract.
2. Confirm the contract in writing. Oral contracts have many shortcomings and can easily lead to disputes.
3. Use an easy-to-understand language. Avoid any language that may be controversial.
4. Determine the contract execution time. Try not to start performing the contract until the contract is signed.
5. Understand the responsibility of the guarantee person in the contract. If a party fails to perform the contract in accordance with the contract, the guarantee party may be liable for all or part of the breach. Guarantee people must be clear whether they have limited or unlimited responsibility.
6. Check the insurance mechanism. Before performance, check the other party's ability to compensate for breach of contract.
7. Define service standards or quality of goods. What is acceptable service standards and quality of goods is essential to the performance of the contract.
8. Consider the mechanism of contract change. If a party thinks that there may be some circumstances that may not be taken into account when signing the contract, then there is a need to change the terms of the contract.
Without either, the parties to the contract may be involved in lengthy and costly litigation.
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Wang Gang, lawer, Herald Legal, law Consulting vx: heraldlegal3 for Chinese in Australia