Sale and Purchase Contract is one of the most popular documents needed for international business. In this article, I set out some of the legal questions over the sales/purchase contract which is regularly consulted to me, in accordance with laws of China.

1. Question: is a written contract necessary for concluding a contractual relationship?

Answer by Lawyer Jingzhan.Wang: As per China legal practice, a contract may be made by oral or written. So, a written contract is not mandatory as per law of China. However,from my experience, it’s better for you to have a contract by written, formally and duly signed by parties. Many disputes have been raised where there is absence of formal contract. It make it difficult to prove the right and obligation agreed between parties. It’s a disadvantage for the party who is responsible for the proof. In practice, if indeed there is lack of a formal contract,  keeping delivery notes, receipt, settlement statement, invoices and etc, would be helpful for the party to prove the contractual relationship and rights and obligations. Continue reading →