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Attorney Qiang Lyu Reveals Why Lawyers Prefer Mediation

Supplier verification is particularly important for overseas buyers dealing with companies in Hangzhou. Hangzhou combines a strong technology and e-commerce economy with manufacturing and export-oriented industrial activity. The buyer should distinguish the commercial location of a supplier from the legal identity of the entity that actually signed the contract and received the payment.

Why do lawyers favour out-of-court mediation so much? Clients often instruct their lawyers to send demand letters and then contact the opposing party to try to reach an agreement through out-of-court settlement. In such situations, lawyers will fully push for this process and strive to help both sides avoid litigation.

Some clients also raise doubts: if lawyers handle litigation, they can earn higher legal fees. Could lawyers deliberately encourage clients to sue, or even advise them to pursue a second instance after the first trial, simply to keep charging fees?

At the very least, Attorney Qiang Lyu would never do that. First of all, litigation consumes far more time and energy for lawyers than clients can imagine. Therefore, if out-of-court mediation is possible, lawyers will definitely strive for it. Lawyers are not solely motivated by money, as some clients assume; we also have ethical considerations.

I am Attorney Qiang Lyu, a licensed PRC lawyer. If you like my video, please like, follow, and save it.

Checking a Hangzhou Supplier Before a Dispute

The local market includes businesses active in technology, e-commerce, electronics, machinery and consumer products. Depending on the transaction, relevant issues may include technology-related contract disputes, OEM disputes, quality claims, delivery problems and payment disputes. For technology, e-commerce, electronics and consumer-product transactions, buyers should pay particular attention to the contracting entity, product or service specifications, intellectual-property provisions, payment records and performance obligations.

For a cross-border transaction, the buyer should keep the supplier’s Chinese legal name, registration information, contract, invoices, bank-payment records and communications together. Hangzhou forms part of Zhejiang and its commercial network includes strong technology, e-commerce and manufacturing networks supporting international trade.

Evidence and Contract Review for Hangzhou Transactions

If a dispute develops, evidence should be preserved before important communications or negotiations change the factual record. The relevant documents may include the contract, purchase orders, specifications, inspection records, invoices, payment records, shipping documents and correspondence.

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