Supreme People's Court's Reply on the Validity of Clauses in Contracts Between Large Enterprises and Small and Medium-Sized Enterprises Stipulating Payment by Third-Party Payment as a Precondition

This document is a judicial interpretation by the Supreme People's Court addressing the legal validity of contract clauses that condition payment from large enterprises to SMEs on receipt of payment from a third party. It clarifies the enforceability of such clauses under Chinese law.