Once again, the only way to resolve these problems is to confront them in advance with a detailed MDG agreement containing a solution to these issues that is fair to both parties. There is no simple and legal answer to any of these difficult questions. Or rather, the legal default in most countries will favor the position of the overseas plant. In the absence of a clear agreement on how to proceed, the foreign buyer will lose roughly every time. If we have written thousands of agreements with China, we know that there are some problems that need to be solved every time. So we work with our clients to identify these issues, and then we work with them on how they want to deal with these problems, and then we compiled the agreement to achieve our customers` goals. Of course, for some of these components, we use some of the language that has worked in the past in China as a basis. That`s the advantage of working with us: we know what works and we know what`s not working. But the resulting contract is unique in all cases. A manufacturing contract between you and your Chinese supplier would ideally include these three elements: I recently explained to an incredibly persistent E-Mailer why we would not sell him any of our existing Chinese contracts so that he could use it as a model: we don`t use « models » for our agreements. After a lot of analysis, if we find what the foreign buyer is trying to do fits into a model of a previous transaction that we did, we will of course use an agreement from a previous transaction as a model for the current transaction. But even in the simplest transactions, what we do is adapt it to the current transaction. I usually suggest each client three options for each important topic and I usually come up with these three of about a dozen possible.
Suppose there are 10 important issues in your contract — that is probably a fairly typical number. Each selection of an option affects all other options, often in a way we`ve encountered before. Before the client answers the questions, we don`t even know what structure to use. After answering questions, the only agreement that meets all their needs simply does not exist. We have never sold a Chinese treaty as a model and we will never do that. First of all, it would be a great disservice to you, because we have literally hundreds of contracts for everything we do, and if you do not keep us as lawyers, we would have no basis for determining which of these contracts is useful to you, if only as a starting point. Our decision is to advise you legally, and for that we should first conduct a conflict review, then embark as a client, and then work with you to determine the corresponding model contract.