Production and research and development of roll grinding machines
One of the earliest domestic enterprises to develop and manufacture roll grinding machines.
One of the earliest domestic enterprises to develop and manufacture roll grinding machines.
Third Session of the Legal Mini-Class: Enhancing Risk Awareness and Building Brand Reputation through Lawful Operations—Guiyang Xianfeng Conducts Legal Training on “Risk Prevention in Signing Sales Contracts”
2024-03-20
To continuously promote the normalization of optimizing the business environment through rule-of-law approaches, enhance enterprises’ capacity to prevent legal risks, and support their healthy and efficient development, on the afternoon of March 18, 2024, the Audit and Legal Affairs Department of Guiyang Xianfeng held a legal knowledge training session titled “Risk Prevention in Signing Sales Contracts” in the small conference room of the Marketing Center on the first floor of the company. Participants included heads of the Party and Mass Work & Human Resources Department, the Audit and Legal Affairs Department, the Production and Supply Department, and the Marketing Center, as well as purchasers and salespersons.
The photo shows the training venue (1).
This training session was led by Bao Demei, a staff member of the Audit and Legal Affairs Department. The content of the session focused primarily on product-related information in sales contracts, quality standards, inspection criteria, liability for breach of contract by both buyers and sellers, dispute-resolution mechanisms, and the formalities of contract signing. First, Bao Demei clearly emphasized the importance for enterprises themselves of effectively mitigating risks in sales contracts. As Guiyang Xianfeng is a manufacturing enterprise, its procurement of raw materials and sale of products all involve the signing of sales contracts, making this training particularly significant. Second, she pointed out that the product names used in contracts must be stated in their full official names and cannot be abbreviated or referred to by common nicknames. Moreover, details such as model numbers, units of quantity, quality standards, and shipping methods must all be specified precisely and unambiguously. Next, Bao Demei highlighted the most critical aspects of contracts: the rights and obligations of both parties, liability for breach of contract, and dispute-resolution mechanisms. Clearly defining the rights and obligations of both parties helps better hold the other party accountable for breaches and safeguard one’s own legitimate rights and interests. Regarding dispute-resolution mechanisms, both parties to the contract will typically choose a method that favors their own interests—for example, “the People’s Court or Arbitration Commission at the location of Party A or Party B.” However, the best approach is to specify the plaintiff’s jurisdiction, since ultimately determining which party will bring the lawsuit remains uncertain, thus ensuring greater fairness for both sides. Furthermore, either litigation or arbitration should be chosen exclusively; it is crucial not to include both options in the same contract—better to select just one.
Subsequently, we will analyze certain issues highlighted in Guiding Case No. 64—the “Liu Chaojie v. China Mobile Communications Group Jiangsu Co., Ltd. Xuzhou Branch Telecommunications Services Contract Dispute”—and explain how to distinguish between fundamental breach of contract and standardized terms, thereby enhancing risk awareness and safeguarding one’s legitimate rights and interests.
The photo shows the training venue (II).
After the training concluded, Peng Zhenhai, Head of the Party-Mass Work and Human Resources Department and Head of the Audit and Legal Affairs Department at Guiyang Xianfeng, emphasized the importance of contract content based on lessons learned from the company’s experience in contract disputes. He reminded all participants to carefully review the completeness of contract terms and identify potential risks when signing contracts. Furthermore, he stressed that every contract must be reviewed and approved by the audit and legal affairs personnel before it can be put into use, thereby minimizing potential contractual risks and safeguarding the company’s legitimate rights and interests. Finally, the audit and legal affairs department staff engaged in an in-depth discussion with the participants, addressing one by one the legal gray areas encountered in their daily work and providing more targeted guidance for their future tasks.
This training not only enhanced the participants’ awareness of the rule of law and risk prevention but also strengthened Guiyang Xianfeng’s capacity to proactively identify legal risks and resolve legal disputes. Meanwhile, for sales representatives in the marketing center and purchasers in the production and supply department—who frequently deal with contracts—being able to promptly identify risks in contracts provides crucial legal protection for safeguarding the company’s legitimate rights and interests.
Source: Audit and Legal Department, Bode Mei
Editor of this issue | Chen Yiting
Editor-in-charge: Peng Zhenhai, Huang Wanfen
Final Review | Wu Suping
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