Contract review is a thinking process-a rational analysis. This process includes:
Clarifying contract-related facts, a measure of the feasibility of the contract, and a forecast of contract risks.
I. The Relationship between Contract Review and Risk Management Contract review is a thinking process-a rational analysis for a contract. This process includes: clarifying contract-related facts, a measure of the feasibility of the contract, and forecast contract risks.
Risk control is to predict and avoid contract-related risks in order to minimize the risks of our business, financial capital, as well as legal risk, in short, is a process to prevent damage that may occur. Contract review and control of legal risk show the relationships between means and purpose, as well as form and substance. The process of contract review is the process for controlling risk; Contract review aims at controlling risk. As a result, the essences of these two issues we are talking about are inseparable and complementary, or even in some way the same.
II. The Significance of the Contract Review and Classification
1. The meaning of contract review the significance of contract review depends primarily on the meaning of contract. Contract plays a crucial role on management, operations, business activities of enterprises, being the key for foreign economic activity, and deeply impacts on and decides the legitimate rights and interests of enterprises. Therefore, we must take contract review very serious.
2. Classification of Contract Review
Prior Review and Post Review
Operation Review and Legal Review
Formal Review and Substantive Review
III. How to Review a Contract (e.g. Lease Contract)
1. Formal Review
Review of the subject matter
Review of general information
Review of qualification
Review of credibility and contractual capacity
2. Substantive Review
Contract is made of various provisions. Any rights and obligations of both parties come out of the provisions by each piece of term. Therefore, we conclude that all the provision review plays the decisive role.