[Corporate Advisory] Legal Review of Standard Subcontract Agreement and Violation of Mandatory Regulations

Law firm Veat reviewed the legal review of client A’s entrustment to determine whether it contained content violating the standard subcontract agreement and mandatory regulations.

Veat’s Corporate Advisory Team reviewed a significant part of the Fair Trade Act’s standard subcontract agreement as of December 28, 2022, and the related legal considerations. This allowed the client to be prepared in advance for legal risks that could arise under the “Subcontract Transaction Fair Trade Act” and the standard subcontract agreement.

Veat’s Corporate Advisory Team, specialized in corporate advisory, informed that the standard subcontract agreement only stipulates basic principles, so additional notations may be needed regarding detailed contract terms, but if such additions go beyond simply modifying the content to delete or revise, they pose a risk of being excluded from various benefits based on the use of the standard subcontract agreement due to unfavorable provisions that disadvantage the contractor.

It is important to clearly state key matters such as subcontract period and payment terms in subcontract agreements to reduce dispute factors, and to comprehensively review whether they comply with laws such as the “Subcontract Transaction Fair Trade Act” and do not include unfavorable provisions in the contract, thus seeking advice from experienced legal experts with extensive experience in corporate advisory, including subcontracting and the “Subcontract Transaction Fair Trade Act”.

Veat’s Corporate Advisory Team provides legal services specialized in corporate advisory, and proactively identifies and reflects legal trends that can affect corporate operations, such as amendments to laws, to help clients operate their businesses stably.

If you need assistance with legal issues that may arise while managing subcontracts and other businesses, please contact Veat at contact.

Thank you.

Veat Law Firm.