Controlling contractual legal risks is important for enterprises and individuals. This article briefly introduces risks and preventive measures during performance.

Proper Performance

Proper performance means each party performs its obligations according to the agreed content, time, and method. Under the Civil Code, performance follows good faith and shall be complete and appropriate. Contract terms should be clear and specific to avoid disputes caused by improper performance.

Contract Modification

Performance may require changes to the contract. A modification should be agreed by all parties and confirmed in writing. A unilateral change may constitute breach. The contract may specify modification procedures and conditions so that all parties clearly agree on any change.

Breach of Contract

A breach occurs when a party fails to perform as agreed and the contractual purpose cannot be achieved. The breaching party may be liable for continued performance, remedial measures, damages, and other remedies. Contracts should clearly define liability and remedies, and potential breaches should be identified and handled promptly.

Lawyer’s Note

Enterprises and individuals should attach great importance to risk control during performance. Key recommendations include:

1. Contract review: Engage a professional lawyer before signing to ensure legal compliance and identify risks.

2. Written form: Confirm modifications in writing to avoid disputes over oral changes.

3. Evidence preservation: Properly retain contracts, correspondence, payment records, and other performance evidence.

4. Timely communication: Communicate promptly to resolve issues. If a dispute may arise, consult a lawyer early.

Clear terms, standardized performance, and proper handling of modifications and breaches can effectively protect rights and reduce legal risks.