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  • 2023-11-01
  • 5 minutes Read
The concurrence of the liabilities for breach of contract regarding the same behavior

In order to effectively constrain the counterparty’s behavior and reduce the risk of breach of contract, a contract may prescribe more than one liability for breach of contract regarding the same behavior. For example, if a party failed to pay on due date, it shall bear the interest for overdue payment, in addition, it shall also bear the liquidated damages for overdue payment. When a contract prescribes different liabilities for breach of contract regarding the same behavior, whether the non-defaulting party could claim for all? It shall be determined case by case. Regarding lending contracts, the current judicial interpretation has…

  • 2023-11-01
  • 4 minutes Read
Can you check your employees’ medical records?

The biggest headache for the HR department is the fake sick leave, such as, an employee went to a hospital and registered for an appointment with the doctor, however, he left after got the registration receipt; an employee brought a fake sick leave certificate; or an employee asked for sick leave regarding his back pain continually. In order to eliminate the fake sick leave, many enterprises require employees to submit documents related to sick leave in their rules and regulations. Those documents including registration receipts, sick leave certificates, medical records, drug lists, inspection reports, hospitalization summaries, etc., by which the…

  • 2023-10-09
  • 3 minutes Read
The “Implementing Measures for the Administrative Provisions on the Registration of Enterprise Names” will be implemented from October 1, 2023

On August 29, 2023, the SAMR issued the “Implementing Measures for the Administrative Provisions on the Registration of Enterprise Names” (hereinafter referred to as the “New Measures”), which revised the 2004 version and will come into effect on October 1. The main reason for this revision is that the upper-level law ” Administrative Provisions on the Registration of Enterprise Names ” came into effect on March 1, 2021, which changed the legal approval system for enterprise names to the voluntarily declaration system for enterprise names, and changed the prior review to the post supervision. Therefore, it is necessary to adjust…

  • 2023-10-09
  • 5 minutes Read
“Tanking”, when the counterparty breaches the contract

Recently, we received a consultation from company A, stating that its counterparty had breached the contract, whether they could “Tanking”? For example, they can suspend the supply. When there is an economic downturn, defaults become common. Many companies may have the same concern as company A. From the perspective of litigation, such concern involves the issue of fulfilling the First Performance of the Right of Defense. Article 526 of the “Civil Code” stipulates that, “Where both parties have obligations towards each other and there is an order of priority in respect of the performance of the obligations, and the party…

  • 2023-10-08
  • 4 minutes Read
“Take a back seat” in the management of retirement

A company with a longer history may have more senior managers who are going to retire. The successors are ambitious. As the old saying goes, “There is a radish in every pit”, so there must be conflicts of interest between those senior managers and their successors. In Japan, many companies implement a “fixed service year system”, which means that companies would adjust the positions of those senior managers from the management positions to the assistant positions or other specialized positions. The purpose is to vacate the “pit”, allowing the successors to have longer time to take over relevant responsibilities. Then,…

  • 2023-09-01
  • 4 minutes Read
The “Working Regulations of the Supreme People's Court Concerning Entrusted Appraisal in Pre-litigation Mediation (Trial)” has been implemented since August 1, 2023

The pre-litigation property preservation, pre-litigation evidence preservation, and pre-litigation injunction are all special pre-litigation measures taken by the court in accordance with the “Civil Procedure Law” to protect the rights and interests of the plaintiff. These pre-litigation measures are unilateral, that is, the defendant’s consent is not required. However, pre-litigation mediation is not the case. It relies on the “People’s Mediation Law” and other relevant laws and regulations, and the people’s court acts as a window to assign the received cases to specially invited mediators or other mediation organizations for mediation after confirming that both parties agree to mediation. Because…

  • 2023-09-01
  • 6 minutes Read
When a company's business license is revoked, whether shareholders are jointly and severally liable for the company's debts?

Mr. Wong invested in his friend’s company many years ago. The company has not made any profit for those years. Wong did not care, because he only subscribed for 5% of the company’s registered capital, which is not a real loss. Last year, the company’s business license was revoked, but the rest shareholders remained silent. Wong held the opinion that the company’s business license was revoked, which has the same consequence as a person’s death, the shareholders would only bear the limited liability equal to their subscribed capital contribution, for him, the maximum loss would be CYN 50,000. Unexpectedly, Wong…

  • 2023-09-01
  • 5 minutes Read
Practical Guidelines for the Management of Retirement

Among all kinds of labor disputes, the retirement dispute is the fewest. However, there are many details regarding the management of retirement. Here is a Q&A list for those details for reference. (* The retirement age is a complicated topic, and we have analyzed in the previous article, so this list will not mention this topic.) Q1: When will a labor contract of a retiring employee be terminated? A1: There are two choices, that is, an employee enjoys basic pension insurance benefits or reaches retirement age. However, when an employee reaches retirement age before he/she could enjoy basic pension insurance benefits, can…

  • 2023-07-31
  • 7 minutes Read
Provisions on Prohibition of the Abuse of Intellectual Property Rights to Exclude or Restrict Competition

Recently, the SAMR issued the “Provisions on Prohibition of the Abuse of Intellectual Property Rights to Exclude or Restrict Competition” (hereinafter referred to as the “New Provisions”), which will come into effect on August 1, 2023. As one of the supporting regulations of the “Anti-Monopoly Law”, the revised “New Provisions” has increased the number of articles from 19 to 33 compared to the previous version issued in 2020. The main modifications are as follows: Regarding the monopoly agreements Item Key amendments 1 Article 3 of the previous version stipulates that the illegal act starts from the time point of “implementing”…

  • 2023-07-31
  • 5 minutes Read
When can I unilaterally terminate a contract?

Miss A ordered a piece of furniture at a store. The next day, the store called and begged her to modify the order with the reason that, “the furniture ordered by Miss A is an old model which has been just sold out, there is a similar new model at the same price.” Miss A refused the store’s suggestion and planned to cancel the order. Coincidentally, Miss B also ordered a piece of furniture at the same store, and she even paid a prepayment. Later, Miss B wanted to cancel the order, but the store refused Miss B’s cancellation and…