Frequently Asked Questions

24 2026-10

Can the employment registration form be used as a labor contract?

The employment registration form generally does not contain the essential clauses of a labor contract and cannot replace a written contract. If an employer fails to sign a contract with an employee within one month of employment, the employer shall pay the employee twice the normal wage. It is recommended that the employer sign a contract with the employee within one month of employment and keep r...

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24 2026-10

Will the court recognize the interest rate agreed upon orally?

Oral interest may be recognized, but it's difficult to provide evidence for it. If the loan agreement between natural persons is unclear, it shall be deemed as having no interest. Chat records, audio recordings, and regular repayments can be used as supplementary evidence, but the interest rate must not exceed four times the one-year LPR at the time the contract was concluded.

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24 2026-10

How are overdue interest and loan period interest calculated?

The interest during the loan period shall be calculated from the date of loan disbursement to the maturity date, and the overdue interest shall be calculated from the date of overdue payment. The agreed interest rate shall not exceed four times the one-year LPR at the time of contract conclusion, and the compound interest added to the principal shall not exceed the limit. During the enforcement st...

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24 2026-10

There are two signatures on the IOU. Who will repay the money?

The two signatures on the IOU usually constitute a joint debt, and the creditor can request any of the signatories to repay the entire amount. The signatories shall share the debt according to the agreed or statutory proportion, and the actual bearer may seek reimbursement after assuming the debt.

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24 2026-10

Do the copies of IOUs have legal effect?

When the copy of the IOU cannot be verified with the original, it cannot be used as evidence alone, but it can be corroborated with the transfer records and chat records to form a chain of evidence, and it may still be accepted by the court.

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24 2026-10

What should I do if the debtor tears up the IOU?

If the IOU is torn up by the debtor, the plaintiff can supplement the lawsuit with transfer records, chat records, and witness testimonies; the party who maliciously destroys evidence shall bear adverse consequences, and the statute of limitations is three years. It is recommended to fix the evidence as soon as possible.

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