The spring edition of CJF hosted a session of contract analysis in the clothing business
One of the events of direct practical relevance to the participants at the ongoing CJF – Child and Junior Fashion 2023. Spring show was the Workshop on Contracts in the Clothing Business. A Feedback Session. EXPOCENTRE AO organised it jointly with the Shamkin & Partners law firm.
The event’s speaker was Evgeny Shamkin, who is a founder of Shamkin & Partners, business lawyer and certified tax consultant specializing in legal consultancy for garment industries for over 10 years. He shared his experience and gave specific advice.
Among the factors that lead to problems with contracts, Mr. Shamkin cited poor quality of education of implementers, the common perception of lawyers as an 'unnecessary expense', the general low level of legal literacy, and the secondary role given to contracts.
The very first action, he says, which should be taken even before a contract is concluded, is to check the counterparty's reputation. This is the most important part of any transaction. You must pay attention to the fact that the counterparty is registered. Next, you need to know that it has been published in the Unified Federal Register of Bankruptcy Information. Even if a company is seemingly well off, it can always have problems, details of which are published in the Unified Federal Register of Bankruptcy Information. It is better to check whether your transaction partner has filed for bankruptcy himself for some reason. It is also important to get reliable information about the turnover of the company to be contracted and the number of employees in order to be sure of its ability to fulfil its obligations, etc.
The workshop covered the issues of drafting simple and safe documents to save time and money. Evgeny Shamkin, in particular, tried to explain why standard contracts cause much more losses than contracts drafted by the entrepreneurs themselves. He talked about how a contract can be made simple, yet safe, and gave examples of contract terms that can lead to losses. Prudence and caution can save time and money, the expert warned.
Press Service, EXPOCENTRE AO