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Larry Zhou’s Legal Team Assists US Client in Contracting with Chinese factory

By the end of 2023, a company in the United States sought to commission a factory in China to produce products according to their specifications, materializing ideas and designs, and subsequently mass-produce the products in the United States.


Contracting with Chinese factory

In order to protect their creative ideas, avoid factory theft or leakage to others, and to expedite the transaction while minimizing risks, the US enterprise contacted Senior Partner Larry Zhou's legal team at Landing (Shenzhen) Law Office. The foreign client expressed the desire for the legal team to conduct a comprehensive evaluation and assist in completing the transaction, taking necessary measures to avoid risks and unforeseen circumstances.


Upon formally accepting the US client's commission, our legal team, based on the client's needs, outlined the background of the transaction. During the examination of the confidentiality agreement previously signed between the US client and the factory, our lawyers discovered that the communicating entity and the signing entity were not the same company. This meant that if the client disclosed confidential information to the factory assumed to be manufacturing the products, but actually signed the confidentiality agreement with another entity, the NDA would not bind the factory. Therefore, our lawyers promptly clarified this risk to the client and guided them to properly sign a confidentiality agreement with the correct entity.


Regarding the contracting section, in addition to the client's basic requirements, our lawyers prepared relevant agreements for the entire production and delivery process, protecting the interests of the commissioning party, emphasizing the commitments and obligations of the commissioned party, product requirements, delivery times, and breach of contract responsibilities.


After several rounds of communication and agreement modifications, both parties completed the signing of the agreements. The client expressed great satisfaction with the professionalism and thoroughness of Larry’s team in providing legal services during this period.


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