Potential risks related to "Fake Contract"
In 2008, Company A purchased a set of equipment from Company B, but it failed to pay the rest 50% payment on time. After Company B’s requests for several times, Company A agreed to make the payment by a bank acceptance. However, when Company A applied the bank acceptance, the bank said that the bank acceptance would be issued upon the contract and invoice within 1 year. Company A asked Company B to sign a “fake contract” for the rest 50% payment, and issue the corresponding invoice. Company B was eager to collect the rest payment, so it did as…