Contract strategy · PRACTICAL GUIDE
Which Law Should Govern a Contract with a Chinese Supplier?
The familiar governing law is not always the most practical choice. The clause should be designed backwards from the likely dispute, assets and place of enforcement.
Law and forum are different choices
A contract may choose one law while sending disputes to a court or arbitration institution elsewhere. That can add proof, translation and expert-law costs.
The clause must be valid, sufficiently specific and consistent across the contract, purchase orders and incorporated terms.
Design for enforceability
Consider where the supplier and assets are located, whether interim measures may be needed, the value and complexity of likely claims, language, cost and the recognition route for the eventual decision.
There is no universally best clause. A short review before signature can prevent a much larger jurisdiction dispute later.
Initial document checklist
- Likely defendant and assets
- Chosen law
- Court or arbitration institution
- Seat and language
- Recognition and enforcement route
