What to do about trade disputes? A must-know legal self-help guide for businesses | Professional international trade lawyers teach you 5 key steps

International trade disputes are one of the most vexing issues for businesses. Customer defaults, disputes over product quality, contract breaches, fraud, and discrepancies in letters of credit can all lead to a company losing everything. According to statistics from the Taiwan High Court, over 3,000 trade dispute cases are filed annually, of which nearly 401,000 cases are unrecoverable due to a lack of prompt legal action.

🏆 Our international trade law team (win rate 89%) combines practical trade experience with cross-border litigation strategies to tell you how to protect yourself in this business war!

1. The 5 Most Common Types of Trade Disputes! Which One Has Your Company Been Affected?
What should a company do when its partners turn against each other? The following are the types of disputes that international trade lawyers most often handle in practice:

1. The buyer defaults on payment (52%, the most common)
   Typical situation: The buyer receives the goods but does not pay the balance due to any reason (such as "quality not meeting the standards" or "order cancellation").
   Key legal provisions:
   According to Article 367 of the Civil Code: "The buyer has the obligation to pay the agreed price to the seller."
   Article 244 of the Civil Procedure Law states: "A request for payment of money may be brought to the court in the buyer's place of residence."
2. Goods quality disputes (accounting for 28%)
   Common traps: "Buyers maliciously return goods after receiving them" or "replacing them with inferior goods and then falsely accusing the supplier"
   Key points of legal offense and defense:
   Article 354 of the Civil Code states: "The seller shall guarantee that the goods possess the agreed quality."
   Key to practice: Objections must be raised within the acceptance period, otherwise you may lose your rights!
3. Contract breach (12%)
   Risk of "unfair contract terms": Many small and medium-sized enterprises only discover they have been cheated after signing unfair contracts
   Lawyer's advice:
   Five essential clauses in trade contracts (payment terms, liability for breach of contract, jurisdiction, arbitration clause, force majeure)
   Article 250 of the Civil Code states: "If the liquidated damages are excessive, the court may be requested to reduce them."
4. Fraud or malicious debt default (6%)
   Common techniques:
   Fake companies defrauding goods (fake companies disappear after taking orders)
   Letter of credit fraud (issuing false or unredeemable letters of credit)
   Emergency Response:
   Check company registration with the Department of Commerce, Ministry of Economic Affairs immediately
   Apply for provisional attachment to prevent the other party from dispossessing the property
5. International Trade Logistics Disputes (2%)
   Shipping delays, cargo damage, and cargo release without documents
   Applicable Law:
   Article 56 of the Maritime Code (Time Limit for Claiming Cargo Damage)
   Convention on the International Sale of Goods (CISG) (applicable to transactions between Taiwanese businesses and European and American businesses)

2. Three urgent actions companies must take when a trade dispute breaks out
✅ Action 1: Immediately preserve all evidence
Required documents:
Order, quotation, PI (Proforma Invoice)
Emails, LINE/WhatsApp conversation records
Shipping order, bill of lading (B/L), acceptance documents
The lawyer reminds: "If the other party starts to read the message but does not reply" is a dangerous signal!
✅ Action 2: Send a formal "documented letter" to remind
Legal significance: Prove that you have fulfilled your "obligation to notify"
Key content:
Notice of payment deadline (usually 7 to 15 days)
Indicates that "legal action will be taken if the deadline is exceeded"
Mistake: Using only LINE to collect payments (weak legal effect)
✅ Action 3: Evaluate your litigation or negotiation strategy
Advantages and disadvantages of strategy application
The other party in the lawsuit is maliciously defaulting on payment, and the amount is large. Enforcement is strong, but it takes time (6 months to 2 years).
Mediation/arbitration can be resolved quickly and maintain business relationships for 1-3 months, but may require concessions.
Private settlement: The other party is willing to repay but needs to pay in installments. It is flexible but not mandatory.

III. Five Key Strategies for Success for International Trade Lawyers
🔥 Strategy 1: Choose the most favorable jurisdiction
Taiwanese Courts vs. Foreign Courts vs. International Arbitration?
A common pain point for Taiwanese companies: Contracts stipulating that "litigation must be filed in the other country" leads to skyrocketing costs of cross-border litigation!
🔥 Strategy 2: Apply for a "pre-seizure" to freeze the other party's assets
Applicable time: Worried about the other party leaving the company
Keys to Success:
Provide security deposit (approximately 20%~30% of debt)
Article 522 of the Civil Procedure Law: Explanation of "Likely Difficulty in Enforcement in the Future"
🔥 Strategy 3: Utilize International Debt Recovery Channels
Applicable to: Foreign buyers with malicious defaults
Practical approach:
Entrust local lawyers to enforce the judgment
Assistance through the International Chamber of Commerce (ICC)
🔥 Strategy 4: Seek punitive damages (if fraud is involved)
Key provisions: Civil Code, Articles 184 (torts), 227 (default)
Successful case: Our firm represented a Taiwanese businessman in seeking triple liquidated damages from a Chinese buyer
🔥 Strategy 5: Use Trade Insurance to Mitigate Risk
Applicable situation: long-term international trade
Recommended plan:
Export insurance (China Trust, CITIC Bureau)
Letter of Credit Insurance

IV. Three Contract Skills for Preventing Trade Disputes
📌 Tip 1: Include a "Breach of Contract Penalty Clause" in the Contract
For example: "Delayed payment will be subject to an additional interest of 0.05% per day"
Legal basis: Article 250 of the Civil Code (liquidated damages)
📌 Tip 2: Choose a "favorable jurisdiction" clause
Prioritize "Taiwan Court Jurisdiction"
If the other party insists on a foreign court, at least choose "international arbitration" (such as Singapore SIAC)
📌 Tip 3: Avoid the high-risk "DP (Document Against Payment)" payment method
✅ Safer payment method:

Letter of Credit (L/C) (Bank credit must be confirmed)
T/T 30% deposit + 70% payment upon bill of lading

5. Why should you contact a professional trade dispute lawyer “immediately”?
⏳ Time is money! Trade debts exceeding 60% are difficult to recover after 6 months
Evidence may be lost (the other party deletes emails or closes the company)
International statute of limitations (e.g., only 2 years in China, 3 years in the EU)

🚨 Our "Four Major Advantages"
Multinational team: Collaborate with local lawyers in more than 12 countries to directly tackle overseas debts
Negotiation + Litigation Dual Strategy: Case 75% Successfully Settled Before Litigation
AI Contract Review System: Find Contract Vulnerabilities in 5 Minutes
Transparent quotation: evaluate the winning rate first and then quote, no random charges

📞 Free legal consultation for a limited time (providing a "dispute risk assessment form")
Consultation Hotline:02-77093611

LINE consultation: @fdlaw
"Trade disputes are like 'business cancer'; delaying them only worsens! We once helped a client recover 8 million yuan in payments within three weeks. The key lies in swift, decisive, and precise legal action."

-- Li Yusheng, Principal Attorney at Fidelity Law Firm (specializing in international trade law for 20 years)

✍️ What’s next for you?

1️⃣ Download the "Trade Dispute Self-Help Manual" 👉 Get it now

2️⃣ Scan the QR code to analyze your case risk level

3️⃣ Make an appointment with a lawyer now and don’t let your accounts receivable become bad debts!

Fuda Law FirmSpecializing in the field of legal counsel, the team's lawyer members all have rich practical experience and long-term experience in serving listed companies and small and medium-sized enterprises, and can provide assistance. If you have any needs, you can contact our firm at any time.

Fuda Law Firm
Line：https://line.me/ti/p/@fdlaw
Tel:0277093611
Facebook:https://www.facebook.com/fudalawyer
website:https://fdlaw.com.tw/
Corporate legal advisor website:https://fdlaw.com.tw/consulting
e-mail:info@fdlaw.com.tw