You've found the right factory. The machines look great. The price is right. Now comes the part most buyers rush through — the purchase contract.
Don't.
After helping hundreds of overseas operators source equipment from Panyu factories, we've seen too many deals go wrong because the contract was vague. A clear contract isn't about distrust — it's about making sure both sides are aligned.
Here are the 20 clauses you must confirm before signing anything.
Equipment Specifications & Quality
✅ 1. Exact Product Model Numbers
Every machine must be listed by its specific model number, not a generic description. "Claw machine" is not enough. "JP-CM2024 47cm wide claw crane with 22-inch LCD screen, EU voltage configuration" is correct.
Why it matters: Without exact model numbers, the factory can substitute a cheaper model and technically still fulfill the contract.
✅ 2. Technical Specifications Sheet
Attach a detailed spec sheet as a contract appendix. Include:
Why it matters: This becomes your quality acceptance standard. If the delivered machine doesn't match the spec sheet, you have grounds for a claim.
✅ 3. Certification Requirements
Specify exactly which certifications are required:
Include certificate numbers in the contract and state that copies must be provided before shipment.
Why it matters: Some factories claim to have certifications but can't produce valid documents. Make it a contractual obligation.
Pricing & Payment
✅ 4. Incoterms (Shipping Terms)
Clearly state the Incoterm: FOB Guangzhou, CIF Ho Chi Minh City, EXW factory, etc.
Why it matters: This determines who pays for shipping, insurance, and customs — and where risk transfers from seller to buyer. FOB means you handle everything from the Guangzhou port onward. CIF means the factory covers shipping and insurance to your port.
✅ 5. Price Breakdown
Request a detailed price breakdown:
Why it matters: Prevents hidden charges. Some factories quote a low unit price but add unexpected fees for packaging, testing, or "export handling."
✅ 6. Payment Schedule
Standard structure:
Why it matters: Never pay 100% upfront. The 30/40/30 structure protects both parties — the factory has working capital, and you have leverage to verify quality before final payment.
✅ 7. Currency and Exchange Rate Lock
Specify the currency (usually USD) and whether the price is fixed regardless of exchange rate fluctuations.
Why it matters: RMB/USD fluctuations can shift costs by 3-5% over a production cycle. Clarify who bears this risk.
Production & Delivery
✅ 8. Production Timeline
State exact dates:
Include a penalty clause for delays (e.g., 0.5% of order value per week of delay, capped at 5%).
Why it matters: Without a timeline, "ASAP" means nothing. Penalty clauses create accountability.
✅ 9. Quality Inspection Rights
Reserve the right to:
Why it matters: You need contractual authority to verify quality before the machines leave China. Once they're on a ship to another continent, returns are extremely expensive.
✅ 10. Packaging Standards
Specify:
Why it matters: Sea freight is rough. Poor packaging equals damaged goods. The contract must set the standard.
After-Sales & Warranty
✅ 11. Warranty Period and Coverage
Clearly define:
Why it matters: "One year warranty" is too vague. Does it cover the game board? The coin mechanism? The LED screen? Get specific.
✅ 12. Spare Parts Package
Include a spare parts list:
Why it matters: When a $2 game board fails in month 8, you need to know exactly how to get a replacement and what it costs.
✅ 13. Technical Support Terms
Define ongoing support:
Why it matters: Machines will need troubleshooting. Knowing support is contractually guaranteed gives you peace of mind.
Legal & Compliance
✅ 14. Intellectual Property
If you're ordering OEM/custom designs:
Why it matters: You might invest in custom branding and themed designs, only to find the factory selling the same machines to your direct competitor.
✅ 15. Dispute Resolution
Specify:
Why it matters: If things go wrong, you need a clear, enforceable process. Litigation in a foreign country is expensive and slow; arbitration is faster and more practical.
✅ 16. Force Majeure
Define what events excuse delayed performance:
Why it matters: Protects both parties from liability for events beyond their control, while preventing abuse of the clause for ordinary business risks.
Logistics & Customs
✅ 17. HS Codes and Export Documentation
The factory must provide:
Why it matters: Wrong HS codes cause customs delays and unexpected duty charges. The factory must provide accurate documentation.
✅ 18. Loading Supervision
Reserve the right to:
Why it matters: Prevents "missing items" disputes. Photos of the loaded container are your proof of what was shipped.
Post-Delivery
✅ 19. Installation and Commissioning
State clearly:
Why it matters: Complex multi-level play structures or VR systems need professional setup. The contract should define who does what.
✅ 20. Acceptance Criteria and Claims Period
Define:
Why it matters: Without a defined claims period, you might discover damage weeks later and the factory argues it happened during your handling.
Download the Full Checklist
We've prepared a detailed contract checklist template based on real Panyu factory export contracts. It includes all 20 clauses with sample language in both English and Chinese.
Contact CN JoyPlay to request the free checklist template and get expert guidance on your equipment purchase:
📱 Mobile / WhatsApp: +86 19124246331
📧 Email: joyplayexport@gmail.com
🎁 Free bonus: Every consultation includes a complimentary professional CAD scene layout planning for your venue — tailored to your space and equipment needs.
