China Alert

    View Authors August 2012
    On 1 July 2012, judicial interpretations made by the PRC Supreme People’s Court concerning the sale and purchase contracts took effect. These interpretations clarify many existing aspects of existing PRC contract laws and offer guidance for the local people’s courts. In practice, these interpretations tend to be considered by courts and other authorities in China to have nearly the same effect as new legislation and, consequently, may affect the way businesses deal with each other.

    This alert covers key points of the interpretations including the effect on letters of intent, affiliated certificates, risk allocation, product inspection and liquidated damages. It also provides recommendations to safely comply with the Supreme Court’s new interpretations and to help avoid risk.

    If you would like to discuss any of these matters, please contact your principal Squire Sanders lawyer or any of the persons listed in this Alert.