I.The Relationship between Contract Review and Risk Management

Contract review is a thinking process-a rational analysis for contract.This process includes: clarifying of contract related facts, measure of the feasibility of contract, and forecast of contract risks.

Risk control is to predict and avoid contract-related risks in order to minimize the risks of our business, financial capital, as well as legal risk,in short,is a process to prevent a damage that may occur. Contract review and control of legal risk show the relationships between means and purpose, as well as form and substance.The process of contract review is the process for controlling risk; Contract review aims at controlling risk. As a result, the essences of these two issues we are talking about are inseparable and complementary, or even in some way the same.

II.The Significance of the Contract Review and Classification

1.The meaning of contract review
the significance of contract review depends primarily on the meaning of contract. Contract plays a crucial role on management, operations, business activities of enterprises, being the key for foreign economic activity, and deeply impacts on and decides the legitimate rights and interests of enterprises. Therefore, we must take contract review very serious.

2.Classification of Contract Review

• Prior Review and Post Review
• Operation Review and Legal Review
• Formal Review and Substantive Review

III.How to Review a Contract (e.g. Lease Contract)

1.Formal Review

• Review of the subject matter
• Review of general information
• Review of qualification
• Review of credibility and contractual capacity 

2.Substantive Review
Contract is made of various provisions. Any rights and obligations of both parties come out of the provisions by each piece of term. Therefore, we conclude that all the provision review plays the decisive role.

• Subject
• Commodity
• Quantity
• Application
• Lease Term
• Rent and Payment
• Transportation and Delivery
• Packaging
• Product Quality and Inspection
  Quality inspection and acceptance on delivery
  Quality inspection and acceptance on redelivery
• Methods, deadline and the confirmation method of inspection and acceptance, as well as the punishment should be declared
• Redelivery
• Maintenance and Preservation
• Relenting and Leasehold Disposition on Expiration
• Advance Deposit Clause
  Advance deposit and enrollment payment
  Deposit Limit
• Intellectual Property Rights
• Confidentiality Clause
• Responsibility for Breach of Contract
• Dispute Settlement
  Selection of Dispute Settlement Solutions
  Selection of Administrative Law Court
• Modification, Cancellation and Termination of Contract
• Signature and Seal
  Signatory (Authorization)
  Seal (Official Seal)
  Relationship between Signature and Seal
  Seal on Modification
• Others
  Sublease
  Force Majeure Clause
  

VI.Notice after the signing of the contract

Since fulfilling the contract is a continuous process, contract signing means not that the whole procedure is over. After signing a contract we have to continue to follow up contract management, and to monitor the performance of the contract. Mainly in the following areas:

• Archiving the Original Document
• Following up the Fulfillment of Contract
• Drawing up the Contract System for Governing Projects and Supervising, as well as Early Warning Mechanism
• Preserving Evidence of Contract Fulfillment