We are seeing in an uptick in China-related matters involving cannabis brands. Here are three tips for cannabis brands that are getting their products made in China:
1. Sign a Contract
As I recently wrote in our sister blog, “while having a contract provides no guarantee of smooth operations or favorable dispute resolution, a well-drafted agreement can mitigate many risks.” Moreover, it “is almost guaranteed, though, is that if a dispute arises and you do not have a contract, you will have no chance of legal recourse in China.”
We see far too many companies doing business in China without proper contractual protection. In some cases, this is because they mistakenly assume a Chinese court would not enforce a contract anyway. Others assume that an exchange of emails and WhatsApp messages with their supplier would be considered a contract, if push came to shove.
The bottom line is that Chinese courts regularly enforce written contracts. Moreover, the existence of such a contract greatly reduces the likelihood of a dispute, precisely because the Chinese supplier is likely to know that a breach of a written contract is very damning in the eyes of a local court. At the same time, in
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