If you’re wondering what to do if your Chinese supplier fails to deliver the goods, there are several steps you can take. First, make sure that you have a clear agreement with your supplier on a specific delivery period, as well as terms for termination and liquidated damages. If you don’t have such an agreement, you can give the supplier a reasonable period of time to deliver the goods. If the supplier still does not deliver, you can request the termination of the contract and a refund of any advance payment you may have made. It’s also advisable to settle any disputes with Chinese business partners in China, either through the courts or arbitration.
When it comes to dealing with Chinese courts, it’s important to include a delivery period in the contract and to make the terms easy for judges to understand. If you don’t specify a delivery period in the contract, you’ll need to give the supplier a reasonable period of time to deliver the goods and send notices informing them of the delivery period and potential termination of the contract. If the supplier ignores your notices, you can then initiate legal action.
If you need support with cross-border trade and debt collection, our law firm, Wolster & Co, offers a range of services, including trade dispute resolution, debt collection, judgments and awards collection, anti-counterfeiting and IP protection, company verification and due diligence, and trade contract drafting and review. Contact us today to learn more.