What Should You Pay Attention To When Signing A Processing Contract And What Legal Provisions Are There?

What should you pay attention to when signing a processing contract and what legal provisions are there?

Many bosses think that it is very easy to find a factory to make riveted and welded parts. They just need to talk orally or sign a simple order. In fact, this idea is extremely risky. Once there is a quality problem or delivery is delayed, there is no way to protect your rights. Before signing the contract, you must say the unpleasant words first and write them clearly in black and white on white paper.

Clarify technical standards and drawings

Don't just talk about the terms that need to be paid attention to when signing a riveting and welding processing contract "according to conventional standards". Be sure to attach detailed drawings and technical parameters.

Specify acceptance methods and objection period

Acceptance cannot be based on feeling, and specific testing methods must be agreed upon, such as ultrasonic flaw detection or magnetic particle testing. It should also be made clear that the buyer must raise objections within a few days after receiving the goods. If the objection is exceeded, the goods will be regarded as qualified. This can prevent the other party from delaying the acceptance indefinitely, or suddenly claiming that the quality is poor six months after receiving the goods to lower the price.

Detailed payment nodes and methods

Never make the payment in full at once, and never delay the entire balance for too long. The suggestion given is to adopt a staged payment method, for example, there is an advance payment, a delivery payment, an acceptance payment and a warranty deposit. The proportion of the warranty deposit is generally in the range of 3% to 5%, and will be retained for about one year. By doing this, you need to pay attention to what terms you need to pay attention to when signing a riveting and welding processing contract . You can keep a bargaining chip in your hand, so that the other party will pay attention to after-sales service and quality issues.

Set overdue liquidated damages ratio

Many people ignore the cost of breach of contract and what legal provisions they should pay attention to when signing a processing contract, causing the other party to feel no distress even if the delivery is delayed. The contract must state the proportion of liquidated damages to be paid for each day overdue, such as three thousandths. At the same time, a ceiling must be set, for example, it cannot exceed 20% of the total contract amount. In this way, the other party can not only abide by the agreement, but also comply with the reasonable scope supported by the law.

Agree on the place of jurisdiction for dispute resolution

If a dispute arises, the cost of going to the other party's location to file a lawsuit is quite high. It is best to stipulate in the contract that the court in the place where you are located will have jurisdiction, or choose arbitration. In this way, a large amount of travel expenses and legal fees can be saved to increase the other party's breach of contract costs, and it can also occupy a more favorable proactive position during negotiations.

Which payment in the riveting and welding processing contract do you think is most likely to cause subsequent disputes? Feel free to leave a message in the comment area to start the discussion. Like and share it so that more bosses can avoid the trap.