Key elements of enforceable contracts with Chinese suppliers
In China manufacturing, many relationships start with verbal agreements. A written contract is essential for protecting your interests, especially regarding quality, delivery, and IP.
| Clause | What It Should Cover |
|---|---|
| Scope of Work | Product specs, drawings, material grades, tolerances |
| Price & Payment | Unit price, MOQ, milestones (typically 30/70) |
| Delivery Terms | Incoterms, lead time, shipping schedule |
| Quality Standards | AQL, inspection process, sampling plan |
| IP Protection | NDA, mold ownership, non-compete |
| Dispute Resolution | Governing law, arbitration venue |
Vague specifications, missing IP clauses, and unclear acceptance criteria are the most common sources of disputes in China supply contracts.