The contract is a direct manifestation of the business operation. The enterprise will inevitably sign a large number of contracts in the operation to regulate the rights and obligations of both parties and protect each other’s interests. It can be said that at present, contract risk is the biggest legal risk of our company and even Chinese enterprises. Below, Xiaozhi will answer questions about how to achieve contract legal risk prevention.
Contracting entity qualification survey system
All contracts that need to be reviewed before signing are the partners who have the qualifications for the contract. Because our country’s laws restrict the qualifications of certain industries, units and individuals that do not have qualifications may not engage in specific business. If we sign such contracts with unqualified entities, we will bring economic losses to us.
Contracted entity credit investigation system
Investigate the business reputation and performance capabilities of the partners. As far as possible, conduct on-the-spot investigations of the partners, or entrust professional investigation agencies to investigate their credit status. It mainly investigates the property status, production and operation capabilities of the other party. Investigate whether the business operation status of the enterprise is normal, whether it can meet the conditions for fulfilling the contract items, whether the contract is subject to disputes or is sealed up, detained, frozen, etc. by the judicial administrative organ, so as to avoid the performance of the other party after signing the contract. At the same time, it is necessary to pay attention to the business reputation of the other party’s business history and customer evaluation.
Authorized agency system
The management and control of the contract authorization of enterprise employees is also the top priority of our prevention of contract risks. Since it is impossible for a company to concentrate all contract signings on the legal representative or the person in charge, in the actual operation process, the company often gives a certain amount of sales to those sales representatives or sales offices abroad. A blank letter of introduction with a corporate seal or a format contract with a corporate seal to facilitate the signing of the contract at the appropriate time. This is actually a kind of authorization behavior of the enterprise, but legal risks often appear here. This is because the irregularity of the authorization can easily lead to unauthorised agents or agents acting, thus causing legal disputes.
Risk and prevention of contract clauses when contract signing
According to the quality of our products, we clearly stipulate the quality standards and stipulate the time limit for quality objections. At the same time, carefully review whether the standards agreed in the contract and customer needs are consistent. If no objection is filed beyond the quality objection period, the quality is deemed to be in conformity with the agreement, except where the state provides for a warranty period. If the goods are delivered to the local area, the delivery location should be clearly stipulated, because this is related to the jurisdiction of the court at the time of dispute handling; if the goods are sent to other places, try not to specify, but should strive to be agreed by the local court. In addition, the name of the receiver of the consignee should be listed in the contract. The purpose of this is to prevent the fact that the other party does not recognize the receipt of the goods after leaving the manager, which brings difficulties to the evidence in the lawsuit. In addition, the time for payment should be clearly stated. The ambiguous agreement will give the partner the reason for delaying the payment, and the contract for the sale of the goods should avoid the risk of losing money and goods by signing the “cash on delivery”. Pay attention to the review of the contract drafted by the other party, whether there is unequal liability for breach of contract and the liability for breach of contract that aggravates our liability. In the process of drafting and signing the contract, our company must clearly stipulate the liability of the other party for breach of contract, and whether the purpose of entering into a contract with our company can be fulfilled as a standard.
Enterprises should strengthen their management of printing
According to the current laws of China and the use of corporate seals and contract chapters, the company’s official seal and contract chapter have statutory legal effects. In the contract, even if there is no signature of the legal representative or the authorized person of the enterprise, as long as the official seal or the contract chapter is stamped, the contract will be legally binding on the enterprise. Therefore, the enterprise should strengthen the management of the enterprise to reduce the printing. Legal Risk.
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