What causes the disputes to arise at the time the contract is formed?
There are several causes of foreign trade contracts being disputed, some of which are as follows:
1. Differences between Chinese law and Western laws regarding contract form: Western laws generally do not impose any special requirements with respect to the form of a contract provided it contains the essential elements to constitute a legal agreement, that is, capacity, intention, offer, acceptance and consideration The contract can be in a written or oral form. However, Chinese law requires that a foreign trade contract be in written form.
2. Inappropriate application of flexible provisions of the United Nations Convention on Contracts for the International Sale of Goods (CISG): The CISG sets out detailed provisions relating to offer and acceptance, most of which are flexible. Chinese foreign trade operations sometimes fail to fully understand such flexible provisions giving rise to another cause of dispute.
Back
