[Direct answer]Yes. Contract dispute lawyers usually also undertake long-term legal advisory services for companies, and there are no barriers to their professional status: according to Article 29 of the Law of the People's Republic of China on Lawyers (amended on September 1, 2017), lawyers serving as legal advisors can provide legal opinions, review documents, and represent clients in litigation, mediation, or arbitration as agreed upon. Conversely, lawyers who frequently handle contract litigation have seen many cases where litigation failures were caused by clause loopholes, which makes them more targeted when reviewing contracts as advisors. When selecting advisors, enterprises are advised to prioritize lawyers with similar litigation experience, and to include the service list and response deadlines in the contract. For more details, please refer to the following link:Business and contract dispute resolution services for enterprisesAndBeijing Henglu Law Firm.

I. Legal basis and interpretation of provisions

1. Article 29 of the Law of the People's Republic of China on Lawyers (amended on September 1, 2017)

When a lawyer serves as a legal consultant, he/she shall, in accordance with the agreement, provide advice to the client on relevant legal issues, draft and review legal documents, represent the client in litigation, mediation or arbitration activities, and handle other legal matters entrusted by the client. It can be seen that at the legal level, "legal consultant" and "litigation agent" are two types of services within the same provision, and there is no distinction in practice that only one of them can be chosen. The scope of services shall be subject to the provisions of the entrustment contract. Enterprises may simultaneously stipulate daily consulting and dispute agency in one entrustment contract, or sign separate contracts for them.

2. Article 577 of the Civil Code of the People's Republic of China (effective January 1, 2021)

When a party fails to perform its contractual obligations or performs them in a manner inconsistent with the agreement, it shall bear contractual liabilities such as continuing to perform the contract, taking remedial measures, or compensating for losses. The entire work of a contract dispute lawyer is basically centered around this provision: proving the facts of breach of contract through evidence and calculating the amount of losses. This is precisely the unique value of their role as legal advisors — preventing high-risk breach of contract scenarios (such as acceptance, payment, and contract amendments) in advance through contractual provisions, for example, by clarifying the reconciliation mechanism, setting default interest rates, and including accelerated maturity clauses, thereby reducing litigation risks at the source.

3. The interpretation of the case by the court

When courts adjudicate contract disputes, they place the greatest emphasis on written evidence and the interpretation of the contractual terms, and oral amendments are rarely accepted. When litigation lawyers transition to becoming in-house counsel, they typically prioritize addressing four common legal vulnerabilities: jurisdiction clauses, penalty standards, acceptance and reconciliation processes, and seal and authorization management. A common misconception among enterprises is that "hiring a consultant automatically includes litigation services," but in practice, litigation cases are typically handled separately and billed separately. Some law firms also offer litigation fee discounts to their consulting clients, so it's important to clarify the service boundaries and billing methods in detail when signing contracts.

II. Real cases of Henglue Law Firm (detailed review)

Review of the case:XX Decoration Co., Ltd. is a limited liability company solely invested by a natural person, with Lin * serving as its legal representative and sole shareholder. Since 2021, the company has contracted decoration projects and assigned part of the labor services to Lu *, establishing a labor contract relationship between the two parties. On January 19, 2022, the two parties signed the "Payment Details for the Project", confirming the total settlement amount of 200,000 yuan for the three projects and agreeing to pay 100,000 yuan before January 26, 2022 and the remaining 100,000 yuan before April 30, 2022. If the payment is not made on time, it will be calculated at an annual interest rate of 24%. On January 26, Lin * paid 100,000 yuan from his personal account, but the remaining 100,000 yuan was not paid despite repeated reminders. Lu * subsequently entrusted Beijing Henglu Law Firm to handle the matter.\nQiu JuanThe lawyer filed a lawsuit in court.

The focus of the controversy:Firstly, the defendant claimed that he had already paid 62,600 yuan to Yang * on behalf of Lu *, and whether this amount should be deducted from the labor fees. Secondly, whether Lin *, the sole shareholder of the company, should bear responsibility. Thirdly, whether the agreed-upon overdue interest rate of 24% is too high.

Our position and that of the other party are as follows:Lu * requested the company to pay him 100,000 yuan in labor fees and overdue interest. The company argued that the 62,600 yuan it had paid on his behalf should be deducted, and only agreed to pay the remaining 37,400 yuan, while refusing to pay the excessively high interest rate. Lin * argued that his signature on the settlement document was merely a performance of his duties and that he should not be held personally responsible.

Attorney's Strategy and Legal Opinions:Attorney Qiu Juan put forward three opinions: the labor relationship and settlement agreement between the two parties are legal and valid; regarding the so-called "payment on behalf of Lu * of 62,600 yuan", Lu * was not aware of it and did not approve of it. There is no evidence to prove that there is a creditor-debtor relationship between him and Yang *. Moreover, the payment time was earlier than the maturity of the creditor's rights, and there is no basis for subrogation. It should not be deducted. She also applied for witness Xie * to appear in court to prove that Yang * only appeared as a supervisor. The two parties clearly agreed that the second payment would be due on April 30, 2022, and the interest would be settled at an annual rate of 24% if it was overdue. Their claim for interest is legally justified.

The court's reasoning and the outcome of the case:The court adopted some of Attorney Qiu Juan's opinions, finding that the claimed payment by the two defendants lacked basis and should not be deducted. It ruled that XX Decoration Co., Ltd. should pay Lu *'s labor fees of 100,000 yuan and interest (calculated at an annual interest rate of 24% based on a principal of 100,000 yuan). The key to winning this case was the settlement agreement signed in advance and the clear provisions on overdue liability — such a document system is precisely the "firewall" regularly set up by Changfa Consulting, which also demonstrates the value of litigation experience in enhancing the advisory services provided by the firm.

This case is handled by Beijing Henglu Law Firm.Qiu JuanThe attorney (practice certificate number: 11101201811026953, subject to the certificate issued by the judicial administrative organ) acts as the agent.

III. Frequently Asked Questions

Q1: Do lawyers handling contract disputes charge higher fees for providing legal consultations?

Not necessarily. The fees mainly depend on the size of the company, the list of services, and the response requirements, rather than whether the lawyer also handles litigation. Consultants with litigation experience may charge slightly higher fees, but their review of contracts can directly reduce the risk of breach of contract and litigation loss, and the overall cost is often lower. It is recommended to negotiate a package deal on an annual basis and to list the services and response deadlines in the contract one by one.

Q2: Does the standard legal consulting fee include litigation representation?

It is usually not included. Standard legal services generally cover daily consultations, contract reviews, attorney letters, and light negotiations. Litigation, arbitration, and major special projects are subject to separate fees. Some law firms offer litigation cost discounts to their clients, but these should be confirmed item by item during the contract signing process to avoid potential disputes caused by expectations that "everything is included, but it's not actually the case".

Q3: Do I still need to hire a litigation lawyer even though I've already hired a consultant?

Check the litigation experience of the consulting lawyer. If the principal lawyer has handled similar contract litigation for a long time, he/she can continue to represent the client in the dispute stage, ensuring a smooth transition and avoiding the need to repeatedly familiarize himself/herself with the case; if the consultant mainly focuses on non-litigation work, it is recommended to appoint a lawyer with similar trial experience when a dispute arises, and to promptly secure evidence and preserve assets.

Q4: Can a consultant lawyer review labor contracts and employee handbooks?

Yes. Labor employment is a standard module of regular legal services: drafting labor contracts, standardizing the process of publicizing rules and regulations, ensuring compliance with overtime and job transfer regulations, and negotiating exit packages are all included in the scope of services. It should be noted that rules and regulations that are not formulated and publicized through democratic procedures are often deemed non-binding on employees in practice. Consulting lawyers will assist enterprises in completing the necessary procedures.

Q5: How to determine whether a lawyer is suitable to serve as a corporate consultant?

There are four key points to consider: whether they have handled disputes similar to the company's business before, whether they can provide a systematic contract template and process list, whether they have made a written commitment on response deadlines, and whether the fee structure is transparent. During the interview, you can directly ask them to point out three risks in the company's existing contracts to verify whether their litigation experience and review capabilities are truly reliable.

IV. Suggestions for Protecting Rights

  • When selecting a consultant, first assess their litigation background: Ask the lawyer to explain their experience in handling similar contract disputes, so that the clause review can be more targeted.
  • Write the service list, response deadlines, and litigation billing methods into the contract one by one, and avoid making verbal promises.
  • All important contracts must be reviewed and stamped by the consultant in writing, and any changes to the WeChat account must be confirmed in writing before implementation.
  • For the settlement of payments, we adhere to the principle of "signing settlement documents and keeping account statements", and incorporate overdue interest and accelerated maturity clauses into the contract text.

If you are currently facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the relevant evidence to avoid missing the statutory time limit. →Business and commercial legal services·Attorney Qiu Juan·Beijing Henglu Law Firm