In early 2015, two Chinese companies TT and GG entered into a lease agreement, according to which TT would rent out its luxury house to GG for three years. The arbitration clause contained in the agreement read as follows: ‘In the event of any dispute arising from fulfilling the obligations relating to this agreement, the dispute shall be submitted to Shenzhen Arbitration Commission for arbitration, and its award will be final.’ In August 2016, GG paid TT one third of the agreed monthly rental only. TT alleged that GG had breached the lease agreement; now TT insisted on claiming damages against GG. GG argued that not paying the full amount of monthly rental this time was due to the fact that some house maintenance fees were deducted. Chinese Legal Framework for Settlement of Commercial Disputes?It became obvious that the two companies could not settle their dispute by means of amicable negotiation.?Now TT intends to settle this dispute by taking court action against GG.

Reuqirement :

Discuss whether TT is currently in a position to do so and give your reasons. And apart from such discussion and analysis, what other advice would you like to give TT under the circumstances described above? Use examples that are relevant to China.

Answer rating: 100% (QA)

Conflicts are part of doing business In business conflicts arise when one party violates the terms of business To clearly define the terms the parties involved enter into a contract which is a legal d... View the full answer