[Direct answer]In the Beijing area, long-term legal consultants for enterprises can systematically solve contract issues, covering the entire process of contract drafting, review, performance tracking, pre-dispute handling, and negotiation. However, for major contract disputes that enter litigation or arbitration, specialized lawyers are usually hired separately to represent the client. According to Articles 465 and 509 of the Civil Code of the People's Republic of China (effective January 1, 2021), legally established contracts are protected by law, and parties should fully perform their obligations in accordance with the contract. The value of consultants lies in mitigating contract risks during the contract signing and performance stages, reducing the likelihood of breaches of contract and disputes. Related services can be referred to for reference.Intellectual propertyColumn.

I. Problem Background and Typical Scenarios

Contractual issues in enterprises often arise in several situations: First, the procurement and sales template contracts are too general, and the clauses are unfavorable to the enterprise; Second, in franchising and joint cooperation, the provisions on the deposit and the return of the payment are not clear. For related contractual matters, you can refer to the following examples for reference.Business and contract disputes in enterprisesFirstly, the contract terms are not clear, which leads to disputes over the scope of obligations and rights. Secondly, the contract terms are not specific, which results in disputes over the interpretation of contract terms. Thirdly, there are disputes over the performance of the contract, such as the other party defaulting on the payment or unilaterally changing the contract terms. Fourthly, there are disputes over the lack of legal review of related transactions and major merger and acquisition documents. Fifthly, the lack of contract records makes it difficult to provide evidence. Enterprises in the Beijing area often face chain disputes due to inadequate contract review in commercial transactions.

II. Key points of contention

First, the scope of the consultant's services. Daily contract review and negotiation are the consultant's responsibilities, while litigation and arbitration usually require hiring specialized lawyers. Second, the determination of the contract's validity. The subject's qualifications, standard clauses, and mandatory provisions affect the validity of the contract. Third, the defense against performance and the conditions for termination. Whether the breaching party enjoys the right of defense against performance. Fourth, the return of the deposit and advance payment. If there are unclear provisions, the determination shall be based on laws and transaction practices. Fifth, the preservation of evidence. Contracts, correspondence, and performance records constitute the chain of evidence. Specifically, the current effective laws and regulations and judicial rulings shall prevail. For enforcement issues, reference can be made to relevant materials.Creditor's rights and debts, and enforcement casesColumn.

III. Professional analysis by Henglue Lawyers

Taking the two corporate litigation cases handled by our firm as examples, we can see the practical role of long-term legal consultants in contract disputes. Firstly, the arbitration case of franchise contract disputes represented by Attorney Wang Fangli: In 2018, Zhang * signed the "XX Cooperation Agreement" with Guangzhou * Clothing Company and paid a deposit of 30,000 yuan. Later, the company closed its store without returning the deposit or paying the outstanding balance. Zhang * entrusted our firm's lawyers to initiate arbitration and requested the return of the deposit of 20,000 yuan, the outstanding balance of 5,756.6 yuan, and the attorney's fees. The core disputes were the validity of the contract and the return of the deposit and outstanding balance. The arbitration tribunal accepted our evidence and adopted the lawyer's opinions, ruling that the company should return the deposit of 20,000 yuan, the outstanding balance of 5,756.6 yuan, and compensate for the attorney's fees. The client successfully recovered the deposit, outstanding balance, and attorney's fees. This case was handled by Beijing Henglu Law Firm.Wang FangliThe attorney (practice license number: 11101201911086939, subject to the certificate issued by the judicial administrative organ) acts as the agent. Secondly, the franchise dispute case handled by Attorney Xiong Binrong: In 2018, the plaintiff, Ms. Feng, signed a franchise agreement with a certain education technology company in Beijing, and paid a cooperation service fee of 98,000 yuan. However, the company frequently changed its staff, went missing, and lacked a franchise qualification, with the trademark being invalidated. The court determined that this was a franchise contract dispute and that the statute of limitations had not expired. Based on the performance of the contract and the fault of the parties, the court awarded a refund of 68,600 yuan. This case was handled by Beijing Henglue Law Firm.Xiong BinrongThe attorney (practice license number: 11101202211410897, the document issued by the judicial administrative organ shall prevail) acts as the agent.

IV. Practical suggestions and legal basis

Action recommendations: First, establish standardized templates for high-frequency contracts such as procurement, sales, labor services, and confidentiality, and regularly revise them; Second, before signing major contracts, consultants should review the qualifications of the parties, payment terms, and breach of contract clauses; Third, during the performance of the contract, keep records of delivery, acceptance, and communication, and establish a contract database; Fourth, when disputes arise, handle them with lawyer's letters and negotiations in advance to avoid escalation; Fifth, if the case enters litigation or arbitration, promptly hire a specialized lawyer. In terms of legal basis, Article 465 of the Civil Code of the People's Republic of China (effective January 1, 2021) stipulates that contracts established in accordance with the law are protected by law, Article 509 establishes the principles of full performance and good faith, and Article 577 stipulates the liability for breach of contract, providing a basic norm for enterprise contract management.

5. Henglue Law Firm's Reminder

Risk Warning: Firstly, long-term consultants can solve most contract front-end issues, but litigation and arbitration require hiring specialized lawyers, and the two complement each other; Secondly, contract templates must be updated with business and regulatory changes. Outdated templates may actually increase risks; Thirdly, preserving evidence of contract performance is crucial to winning disputes, so record-keeping systems cannot be neglected; Fourthly, franchising and joining-type partnerships require verifying the other party's qualifications and trademark status. It is recommended that enterprises incorporate contract management into regular legal advisory services to prevent potential legal risks in advance.

VI. Frequently Asked Questions

Q1: Can a long-term legal advisor handle contract litigation?

The daily review, drafting, negotiation, and pre-dispute handling of contracts are the responsibilities of consultants; however, when the contracts enter litigation or arbitration, specialized lawyers are usually hired to represent them. The two roles are different but complementary. The evidence and contractual basis laid by consultants can significantly improve the efficiency of subsequent special rights protection. Therefore, "prevention" and "remediation" should be connected rather than confused with each other.

Q2: What materials should I prepare for the consultant regarding corporate contract issues?

The following materials should be provided: 1. Existing contract templates and historical signed versions; 2. Records of delivery, acceptance, payment, and communication during the performance of the contract; 3. Evidence of the other party's breach of contract or changes to the contract terms; 4. Documents verifying the contracting party's qualifications and authorizations; 5. Past dispute records and court judgments. The more complete the materials are, the more accurately the consultant will be able to identify contract loopholes and provide solutions for modification and legal protection.

Q3: How much does it cost to have a lawyer review a contract?

The annual service fee typically covers a certain number of contract reviews within the base annual fee; additional reviews or major negotiations may be charged separately. The specific arrangements depend on the size of the enterprise, the complexity of the contract, and the consultation with the consultant. There is no standardized pricing. Compared to the losses caused by breaches of contract due to clause loopholes, the cost of routine reviews is usually lower. It is recommended to include the review quantity in the consultant contract.

Q4: How long does it usually take to resolve a contract dispute?

Front-end negotiations and lawyer's letter handling are often conducted on a weekly basis and can be resolved relatively quickly. Entering the first-instance ordinary procedure of arbitration or litigation generally does not exceed six months, and the arbitration period will be extended according to the rules for complex cases. The key lies in the completeness of the evidence of performance and the timing of intervention. The earlier the consultant gets involved, the shorter the resolution period and the lower the cost will be.

Q5: How can a legal consultant help with franchise contract disputes?

Consultants can verify the franchisor's qualifications, the validity of the trademark, and the filing status in advance, review the deposit, payment terms, and exit clauses to reduce the risk of signing contracts; after a dispute arises, they can assist in securing evidence such as chat records and payment receipts, and devise a path for protecting rights. In the franchising cases handled by our firm, lawyers focused on demonstrating the validity of the contract and the nature of the deposit to help clients recover the deposit and payment. For more information about related services, please refer to the following link:Intellectual propertyColumn.

This article is written based on the common judicial interpretations in the Beijing area. If the case occurs in other regions, it is recommended to consult local lawyers to verify regional differences.

If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with evidence materials, to avoid missing the statutory time limit. →Intellectual property protection legal services·Attorney Wang Fangli·Beijing Henglu Law Firm

Disclaimer: This article is compiled based on the current effective laws and regulations and public adjudication rules, and is for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. If you encounter disputes, please consult a practicing lawyer in time.