Lawyer Qiang Lyu explains civil fraud.
Supplier verification is particularly important for overseas buyers dealing with companies in Linyi. Linyi is an important commercial and manufacturing center in Shandong with strong wholesale and industrial supply chains. 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.
What is civil fraud? According to Article 148 of the Civil Code of the People’s Republic of China, If the defendant fabricates facts or intentionally conceals material facts, thereby causing losses to the plaintiff, the plaintiff may apply to an arbitration institution or a court for revocation within one year from the date the fraudulent act occurred.
If the defendant acted with the purpose of illegal possession from the very beginning, the conduct may constitute criminal fraud, in which case the plaintiff may report the case to the public security organ.
In addition, if the defendant is a business operator and the plaintiff is a consumer, the plaintiff may claim refund plus threefold compensation in accordance with the Consumer Rights and Interests Protection Law.
I am Qiang Lyu, a PRC lawyer. If you like my video, please remember to subscribe to my channel.
Checking a Linyi Supplier Before a Dispute
The local market includes businesses active in wood products, building materials, machinery and wholesale trade. Depending on the transaction, relevant issues may include quality disputes, quantity disputes, delivery problems and payment disputes. For wholesale, building-materials, wood-product and machinery transactions, buyers should pay particular attention to product specifications, quantities, inspection records, delivery arrangements and the identity of the actual contracting supplier.
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. Linyi forms part of Shandong and its commercial network includes a broad wholesale and manufacturing network serving domestic and export markets.
Evidence and Contract Review for Linyi 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.
The information provided in this article is for general informational purposes only and does not constitute legal advice. Laws and legal procedures may vary depending on the specific facts and applicable jurisdiction. No lawyer-client relationship is created by reading this article or contacting us through this website. For advice regarding a specific matter, please consult a qualified lawyer after a formal engagement has been established.
Legal Contributors
Legal professionals contributing to this article and related legal analysis.
Qiang Lyu
His practice also includes China company law, intellectual property matters, and commercial contract disputes involving foreign-invested businesses and cross-border commercial activities.