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Explanatory Notes
Chinese Contract Template for Hire of Premises
This contract is in two parts: (A) A letter to be written by the owner of the premises setting out the precise terms - date of event, rooms to be reserved and approximate numbers of people and the services to be provided. It also sets out the charges, payment terms and cancellation fees; and (B) Terms & Conditions designed to further regulate the arrangements between the owner and the hirer. Clearly, the precise details will vary depending upon the type of premises and the events being catered to, but we hope the document provides a structure which can be developed for any use. Matters such as payment terms, cancellation charges etc are clearly going to vary. An agreement in the form of a letter is just as effective as a document headed "Agreement", provided that it is signed by the sender and then countersigned by the recipient. One thing to watch - if the recipient countersigns but changes some of the terms or sends a covering letter amending some of the terms, that does not constitute an agreement unless those amendments are themselves agreed. Try to ensure, when you are preparing any agreement, but particularly a letter, that it is countersigned by the other party without any qualifications. Otherwise difficulties can arise. The letter should be sent to the Hirer in duplicate with a copy of the Terms & Conditions attached. Terms & Conditions The Terms & Conditions are reasonably self-explanatory. As with the form of letter, they may not be appropriate for all circumstances but they give a basic framework. The Chinese version contains the following text dealing with governing language, governing law and jurisdiction: “1. The governing language of this agreement is Chinese/English/other. 2. This agreement shall be governed by and interpreted in accordance with English/Chinese law. 3a. The parties will negotiate in good faith any dispute arising between them and if they cannot resolve the dispute within 15 days, either party may bring legal proceedings in the courts of [ ]; or 3b. The parties will negotiate in good faith any dispute arising between them and if they cannot resolve the dispute within 15 days, either party may commence arbitration in [Beijing, China/London, England] in accordance with the rules of the [China Arbitration Centre/ .....................]. There will be an arbitration tribunal comprising three arbitrators and the award of the arbitrators will be final.”
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