practice note Mainland China English original

The Fifty-Sixth Group of Guiding Cases of the Supreme People's Procuratorate

English SPP guiding-case release addressing reasonable diligence where a legal representative provides a company guarantee and the counterparty claims good faith.

Brief English Introduction

This English release is valuable for the legal representative unit because it shows how prosecutorial supervision treats unauthorized guarantees. A counterparty that fails to verify whether the legal representative had authority to guarantee company debt cannot easily claim good faith.

Use It For

Use it to connect legal representative authority with guarantee practice and the counterparty’s reasonable-review duty.

Teaching Notes

Ask students whether the company’s own fault in seal management should affect liability even when the guarantee is invalid.