Small And Medium Manufacturing Enterprises Management Contracts And Legal Risk Study

Based on the market recession today, here come questions about how to make middle and small-sized enterprises better survive in this difficult environment, and even be able to have a stable development. It is found through analysis that although there are many types of business risks which a large part of belong to force majeure category, legal risks can be pre-emptive by comparing to other risks. The contract legal risk can greatly reduce probability of its occurrence through prevention in advance, to avoid disputes furthest and avoid unnecessary losses. It can’t be denied that having contract risk management is the cheapest, fastest and most efficient to middle and small-sized enterprises, meanwhile it is one of the most appropriate risk prevention measures.The paper starts from the evolution of risk management theory and has a brief analysis of its current situation at home and abroad; Then the definitions of contract management and contacts management are introduced, and the paper analyzes the links between them. Meanwhile, combing with the fact situation of middle and small-sized enterprises, the paper has deep discussion of role which contacts management plays. Furthermore, it starts the definition of contract risks of legal text and its significance is analyzed to prevent commentary; Based on these, the paper has deep analysis of how to identify their legal risks of contract text, identify what the risks are and the causes of risks; Subsequently, the paper chooses several extremely important types of contract in their course of business, and starts with these contracts to have identification of frequent risks and put up with preventive appropriate operational manner in order to meet the essential needs limit. Finally, choose the author of the law practice during the actual operation of the company’s plant RLT lease contract and the contract of carriage has been verified case study.This paper studies how to identify and prevent the contract legal risks during middle and small-sized enterprises’ operation. Author not only uses theory analytical methods, but also uses example analytical methods, in order to make middle and small-sized manufacturing enterprises have better understanding of contents and practical application. The example risks herein are very common in daily operations, and as for prevention methods of those risks, the enterprises are able to apply in practical ways. So, I hope the paper will help middle and small-sized enterprises have practical reference during contract management, and especially have some practical contribution to contract text legal risk identifications and preventions.