When confronted with an international trade dispute, there are typically three methods employed to address and settle the issue: negotiation, civil actions, and criminal actions.
In this article, our primary focus will be on the negotiation approach. So, what exactly does negotiation entail? It involves representing our clients by sending an official letter to the opposing party and initiating direct negotiations either in person or via phone calls. The main objective is to reach a resolution and settle the case amicably before resorting to a trial.
Now, let’s delve into the advantages of initiating negotiations with a Lawyer’s letter upfront. Below, we provide a comprehensive overview of these benefits.
- Clarify facts, cease and desist illegal infringement
A lawyer’s letter is a powerful legal instrument that offers numerous advantages over standard business letters. It holds particular significance in complex and delicate legal matters, such as cases involving unfair competition, intellectual property disputes, and false information dissemination.
- Promote performance of contract
If there is a clear contract dispute, a lawyer’s letter serves the purpose of reminding the other party of their contractual obligations and warning them about the risks and legal liabilities involved in case of a breach of contract.
- Interruption of limitation of action
Generally, the limitation period for international trade disputes is 4 years, as stipulated by the Civil Code of the People’s Republic of China. If there is no evidence to prove that the creditor has claimed payment from the debtor within this period and the creditor does not file a lawsuit until 4 years later, the opposing party may use this as a defense. In such a case, the China Courts will not support the creditor’s claim, citing that “the limitation of action has expired,” resulting in the creditor losing the lawsuit.
However, an attorney’s letter issued by a legal practitioner in China can play a crucial role in interrupting the limitation period. This interruption holds significant importance and is one of the key benefits of using a lawyer’s letter.
- Notice to terminate the contract
The Civil Code clearly stipulates that the termination of a contract must be communicated in writing to the other party. In case the other party raises any objections, they have the right to seek resolution through the people’s court or an arbitration institution. These legal provisions ensure that both parties are duly informed and have the opportunity to address any disputes or concerns regarding the termination of the contract in a fair and transparent manner. By requiring written notification, the Civil Code aims to establish a clear record of communication and facilitate a proper legal process in case of disagreements or disputes arising from the contract termination. This safeguard enhances the overall effectiveness and integrity of the contract termination process in accordance with the law.
- Facilitate reconciliation
If both parties express their intention to reconcile, they can initiate the process by reaching a mediation or settlement agreement. This can be accomplished by sending a lawyer’s letter to notify the other party and requesting them to engage in negotiations within a specified time frame.
A well-crafted lawyer’s letter is not merely a standard template; rather, it reflects the diligent and meticulous work of the lawyers involved. It not only demonstrates the legal expertise of the lawyers but also showcases their practical experience in handling similar cases. When we decide to send a lawyer’s letter, our primary focus is always on meeting the needs and objectives of our clients. Taking the initiative in the dispute resolution process, we aim to serve our clients’ best interests and work towards achieving a favorable outcome.
In short, don’t underestimate a lawyer’s letter.
