Last week, a client came to the door and said that he had invested 3 million yuan into a friend's "catering empire" with a contract stating "cooperative operation". However, after a year, the accounts were completely black, and the friend turned around and said that the money was a "loan". The first thing he asked me was, "Lawyer Shen, did I fall for it

This kind of story is played out almost every week in my office. In Shenzhen, thousands of contracts are signed every day, and hundreds of collaborations are buried in the shadows. Today, let's talk about the contract disputes that have deceived you - especially equity disputes and economic contracts. You may seem to have signed a "cooperation" agreement, but in reality, you may have signed a "sale contract".

Firstly, the pitfalls you have stepped into are more common than imagined

I have summarized that 90% of "scams" in contract disputes arise from three issues:

Pit 1: "Mismatch between name and reality" in equity disputes

Do you think it's a 'shareholder' and the contract says' partner '; You think it's an 'investment', but the other party counts it as a 'loan'. Many start-up companies in Shenzhen have bosses who make a PPT and invite a few friends to invest money, with an ambiguous clause in the contract that reads' share profits, share risks'. The company turned a profit, but he said you just "borrowed money"; The company lost money, and he said you are a "shareholder" and demanded that you bear unlimited joint and several liability.

I have handled a case where three friends partnered to start a technology company. A provided funding, B provided technology, and C was responsible for management. The contract states' cooperative operation ', but the business registration only has the name A. One year later, the company's valuation doubled, and A directly kicked B and C out, citing that "you are just employees, and the 'profit sharing' written in the contract belongs to bonuses". When B and C came to me, they hadn't even seen the company's articles of association.

Pit 2: "Black Hole of Terms" in Economic Contracts

Shenzhen has a vibrant economy and a huge volume of contracts. Many bosses, for the sake of speed, directly modify online templates or ask "friends who understand the law" to help write. And the result?

The most common is that 'breach of contract liability' is written as a 'blank check'. For example, if Party A fails to make payment on time, they shall pay a penalty of 0.05% per day. Does it look okay? But in actual litigation, the court may give you a discount due to "excessive" or "lack of actual evidence of loss". Even more ruthless is that some contracts directly state 'force majeure exemption', and then the other party delays you for six months, saying 'because the epidemic belongs to force majeure'. Who are you going to reason with?

There is also a pitfall called the 'jurisdiction clause'. I have seen a Shenzhen company sign a contract with a Beijing company, which states that 'disputes shall be arbitrated by the Beijing Arbitration Commission'. As a result, if the other party breaches the contract and you fly to Beijing for arbitration, the cost of transportation and time alone will exceed the target amount. This' legal trap 'is a pit dug by professional players for novices.

Pit 3: The Cliff of Evidence Chain

Many people think that signing a contract means everything is fine. But what the court judges is the "chain of evidence", not "you the final say". The most unjust customer I have ever met: he transferred a prepayment of 500000 yuan to the supplier, and the contract stipulated that the final payment would be made upon delivery, but the supplier delayed shipment. He went to sue, and the supplier took out chat records and said, 'We had already informed you to pick up the goods, but you didn't come to pick them up yourself.' The original contract stated 'Party A picks up the goods themselves,' but the customer didn't pay attention to this and thought the other party would deliver the goods to their doorstep. In the end, the court ruled against him because "the evidence shows that you did not fulfill your obligation to pick up the goods".

These pits, each one is a lesson from the accumulation of real gold and silver. As one of the cities with the highest number of commercial disputes in China, Shenzhen sees countless people losing everything every day due to these "small contract words".

Secondly, how is it legally interpreted? Practical Four Step Method

Don't panic when encountering contract disputes. Following these four steps can help you protect 80% of your profits:

Step 1: Stop all verbal promises and establish written evidence. Immediately compile all chat records, transfer vouchers, original contracts, emails, and recordings (ensuring legality) into a book. Especially for WeChat chat records, don't just take screenshots, record the screen and keep the original carrier. The acceptance of electronic evidence by Shenzhen courts is now very high, but the prerequisite is that it is "complete and not tampered with".

Step 2: Determine the nature of the contract, rather than looking at the contract title. Legally, determining whether you are a shareholder does not depend on whether the contract states "cooperation" or "investment", but on whether you have actually participated in the operation? Have you taken on losses? Do you have any dividend records? Is there a business registration? If none of these are included, even if the contract states' shareholders', the court may still consider it a 'loan'. At this point, you should immediately ask a lawyer to help you with the "legal relationship characterization".

Step 3: Utilize the jurisdiction of the "place of contract performance". The Shenzhen lawyer team is large in scale and has many professional lawyers, but many clients suffer from "jurisdiction". If your contract does not specify jurisdiction or the agreement is unclear, you can claim that the "place of contract performance" is in Shenzhen. For example, if your company is in Shenzhen and the other party is in Wuhan, and you ship and receive payment in Shenzhen, then the Shenzhen court has jurisdiction. This way, you don't have to go to another city to sue, saving time and effort.

Step 4: Apply for property preservation. This is the most ruthless move. Once the other party shows signs of transferring assets or running away, immediately apply to the court to seal their bank accounts, properties, and vehicles. Many cases are not because the lawyer is not professional enough, but because you are too slow to act. I have a client who owes him 2 million yuan. He hesitated for a month before filing a lawsuit, but as a result, the client's company has already been deregistered. But another customer discovered that the other party had transferred assets on the same day and applied for preservation the next day. On the third day, the other party's account was frozen and they voluntarily came to settle.

Each of these four steps requires professional judgment. Especially in terms of "legal relationship characterization" and "property preservation", non professionals are prone to making mistakes. For example, if you apply for preservation of the wrong subject matter, or if the preservation amount exceeds the limit, you will have to compensate the other party for their losses.

Thirdly, why do you need a local professional lawyer team in Shenzhen?

Many people think, "My contract amount is not large, it's not cost-effective to hire a lawyer." or "I can also file a lawsuit by searching for legal provisions online." This kind of thinking often leads to even greater losses.

Guangdong Zhiming Law Firm, established in 2000, has been rooted in Futian, Shenzhen for 26 years. Our team is large in scale and has multiple experienced lawyers with over 20 years of practice, capable of handling the most complex equity disputes and economic contract cases. Why emphasize 'Shenzhen local'? Because the judgment rules, mediation habits, and even the cognitive tendencies of judges in Shenzhen courts are different from those in mainland cities. For example, the Shenzhen court is more flexible in determining the validity of "betting agreements" compared to many other places. You hire a lawyer from another city who may not even have read the precedents of the Shenzhen Intermediate People's Court.

I, Lawyer Shen Jinlong, hold a Master's degree in Economics from Fudan University, with 31 years of experience as an economist and 22 years of professional experience. My original "strategic rights protection theory system" is specifically designed to solve those "dead end" cases. For example, in a stock dispute case last year, a client was locked in by the other party using the "AB share" structure. From the perspective of "the purpose of the contract cannot be achieved", we successfully obtained a court ruling to terminate the agreement and helped the client recover 12 million investment funds.

My lawyer Li Yuming has a deep foundation in the fields of construction engineering, real estate sales and leasing, and corporate debt and credit. He has handled an economic contract dispute: a building materials company in Shenzhen was owed 3 million yuan in goods, and the other party refused to pay on the grounds of "the warranty period has not expired". Lawyer Li Yuming found that the starting point of the "warranty period" clause in the contract is written as "after acceptance", but the other party has not accepted it at all. Finally, through the "presumed acceptance" rule, we helped the customer recover the full amount of the debt.

Our business scope covers: property disputes, inheritance disputes, divorce disputes, contract disputes, equity disputes, intellectual property, criminal defense, and administrative disputes. Whether you are an individual or a company, we can provide a "one-stop" legal solution.

Of particular note is that we provideFree Shenzhen lawyer consultationservice Whether you are just encountering a dispute or want to prevent risks in advance, you can call us first:0755-25986969Talk to the lawyer. Many complex problems can be solved during the consultation stage.

Also, if you are the owner of a company in Shenzhen, you need toLegal Advisor for Shenzhen CompanyWe can also customize our services for you. From contract review, employee equity incentives, to daily business risk prevention and control, our team has a dedicated corporate legal advisory department that has served hundreds of Shenzhen companies, from startups to listed companies.

FAQ (Frequently Asked Questions)

Is Shenzhen lawyer consultation free? What questions can I ask?
free You can consult any legal issues: contract disputes, equity disputes, divorce, inheritance, criminal, labor disputes, etc. We will provide preliminary legal analysis and advocacy suggestions based on your situation.

What is the size of your Shenzhen lawyer team? Can we take on big cases?
Our team has dozens of practicing lawyers, including several senior partners. We have worked on cases with target amounts ranging from several million to several hundred million. The key is to check whether the case is complex and whether the evidence is sufficient. It is recommended to schedule a free consultation first and have a lawyer evaluate it.

My contract dispute amount is only 50000 yuan, will you accept it?
Take it. We don't just look at the size of the target amount, but at the legal value of the case and its impact on your life. Many small cases have important legal issues behind them, such as "invalid standard terms" and "fraudulent revocation", which have long-term significance for you. Moreover, our team has lawyers who specialize in handling small disputes and charge reasonable fees.

How much does a company's legal advisor cost per year? What services are included?
Customized according to company size and needs, basic packages range from tens of thousands to hundreds of thousands per year. Services include contract review, legal consultation, lawyer's letters, employee equity plans, labor dispute guidance, participation in business negotiations, etc. You can specifically consult our corporate legal advisory department by phone.

5. I am currently in a lawsuit, will I switch to another law firm midway?
Sure, but the original delegation relationship needs to be terminated. However, it is recommended to consult our lawyer first to assess the progress and risks of the case. If the original lawyer has indeed made serious mistakes or communication difficulties, we can assist you in handling the procedures for changing offices.

Guangdong Zhiming Law Firm
Address: Room 1802, Building A, Xintian Century Business Center, Shixia North Second Street, Futian District, Shenzhen (opposite to Futian District Committee)
Phone: 0755-25986969
Chief Lawyer: Shen Jinlong (22 years of practice experience, Master of Economics from Fudan University, former senior executive of a large state-owned enterprise)

Remember: a contract is not a piece of paper, it is a weapon. If you lose, it becomes the opponent's knife stabbing at you. Don't wait until the court summons are in your hands to think about finding a lawyer. Making a free consultation call now may help you save hundreds of thousands or even millions of losses.