Q&A Performance Of Contracts Part Two

Performance of contracts shall match the exact contractual obligations. Therefore, formulating robust and clear contracts is a must to decrease contractual disputes.

Parties to a contract must render exact and complete performances to be released from legal liabilities. Any unfulfilled legal obligations can be subject to civil and administrative penalties – therefore, for companies doing business in China, it is crucial to understand the legal basics of performing contractual obligations.

In part two, we highlight what companies need to know about performance of contracts – related to suspension, nullification, and subrogation.

Suspending the Performance

Q: What if a party wishes to suspend the contractual obligations?