News Details

Industrial Procurement and Sales Contract Risk Prevention Training Held at Yikong Intelligent

To strengthen employees’ awareness of legal risks associated with contracts and enhance compliance management in the company’s procurement and sales operations, Yikong Intelligent organized a specialized legal training session on “Risk Prevention in Industrial Procurement and Sales Contracts” on August 15, 2026. The training was delivered by Lawyer Li, a partner at Shanghai Co-effort Law Firm and a doctoral candidate at Zhejiang University Guanghua Law School. Employees from the Procurement, Sales, Legal Affairs, and other relevant departments attended the training.

Focusing on Key Contract Clauses and Systematically Identifying Potential Risks

During the training, Lawyer Li provided a systematic interpretation of the 11 key clauses commonly found in industrial procurement and sales contracts, with reference to the Civil Code of the People’s Republic of China and relevant judicial interpretations. The session covered critical areas including product specifications, quality standards, pricing and payment terms, packaging and transportation, product acceptance, warranty periods and quality assurance responsibilities, intellectual property rights, liability for breach of contract, contractual contact information, dispute resolution, and place of contract execution.

Lawyer Li emphasized that contract risk management is a systematic process, and that preventing risks before signing a contract is far more cost-effective than resolving disputes through litigation afterward. He analyzed common risks associated with each clause and provided practical recommendations.

For example, regarding quality standards, he noted that simply stating “compliant with national standards” is insufficient. Instead, contracts should adopt a structure combining quantitative specifications, referenced standards, and clear acceptance procedures, while explicitly defining which standard takes precedence when the contractual requirements are higher than national standards.

Regarding payment terms, he provided an in-depth interpretation of the latest judicial guidance from the Supreme People’s Court concerning the validity of “pay-when-paid” (back-to-back payment) clauses, noting that clauses requiring payments to small and medium-sized enterprises to be conditional upon receipt of payment from a third party may be deemed invalid under applicable law.

For liquidated damages, Lawyer Li reminded participants that a higher amount does not necessarily provide stronger protection. Under applicable judicial rules, a portion of agreed damages that exceeds 30% of the actual loss may not be supported by the court.

Learning from Practical Cases to Strengthen Risk Identification

The training also addressed several practical issues, including the relationship between delivery locations and the transfer of risk, the distinction between inspection periods and warranty periods, contractual allocation of intellectual property infringement liability, and common pitfalls in dispute resolution clauses.

Lawyer Li particularly emphasized that the contractual contact information clause, although frequently overlooked, can become a critical risk point. Outdated or incomplete contact information may result in important notices being undeliverable and create difficulties in legal proceedings. He recommended clearly specifying the address stated in the contract as the designated address for the service of legal documents by judicial authorities.

Strengthening Compliance and Supporting High-Quality Development

As a National High-Tech Enterprise and Specialized and Innovative “Little Giant” Enterprise, Yikong Intelligent focuses on the development and manufacturing of core motion-control components for mobile robots, with its products serving customers in multiple countries and regions worldwide. As the company continues to expand its business and increase its international presence, the standardization and professionalization of contract management have become increasingly important.

The training featured practical content, detailed case studies, and highly targeted guidance. Participants noted that the session provided a clearer understanding of potential risks in procurement and sales contracts and offered practical methods for identifying and preventing such risks.

Going forward, Yikong Intelligent will continue to strengthen its legal risk prevention and compliance management system, move risk prevention further upstream, and enhance the standardization of contract management, providing a stronger compliance foundation for the company’s sustainable and high-quality development.