Choosing dispute resolution methods in a financial crisis

The social effects of the financial crisis are numerous. A change in the economic situation necessitates corresponding changes in the way legal services are delivered.

The dispute discussed below shows that, when engaged in dispute resolution, a lawyer must not only fulfil the traditional legal role, but must also analyse and reconcile social, economic and political factors in order to adapt to changing circumstances and best protect the rights and interests of the parties concerned. In this way, lawyers will demonstrate their value in times of crisis.

On 31 May 2007 a property development company and a contractor (a construction company) entered into a construction contract in relation to a property development project. The parties set out in detail in a contract the construction period, time extensions, responsibility for remedies resulting from delays, methods of payment, other breaches and consequential remedies, and methods of settling disputes.

Ma Jiangtao is senior partner of Dacheng Law Offices in Beijing and head of the dispute resolution department. His main areas of practice are real estate, corporate law, administrative law, investment, dispute resolution and compliance.