2. Fabricating Contracting Parties through Affiliation: It is not uncommon in judicial practice to encounter situations where contracts are signed through affiliation or borrowing. This can lead to difficulties in contract performance as the actual parties lack the corresponding qualifications or have weaker economic strength. Although businesses can pursue the affiliated party's responsibility in case of disputes, it often exacerbates legal risks for the company.

3. Malicious Use of Limited Liability to Evade Contractual Obligations: Deliberate fraudsters in international trade often register limited liability companies with low capital, gain party status, sign large contracts, defraud the other party, and cause significant economic losses. In the event of substantial compensation liability or damage, they may apply for company bankruptcy liquidation. It is noteworthy that some larger companies, to mitigate substantial risks in international trade, establish several subsidiary companies with low registered capital. These subsidiaries then sign trade contracts externally. If the contract is executed normally, the company ensures its performance with the financial and human resources of the parent company. However, if there are significant legal risks in the contract, sacrificing the subsidiary is a measure to avoid implicating the parent company in litigation.

4. Unclear Agency or Authority, or Restricted Agent Rights: Most contracts signed by enterprises are completed by agents. If the agent or the authority of the agent is unclear, there is a risk of unauthorized representation or exceeding authority, leading to the contract being revoked or not fully executed. This poses significant risks to enterprises that have already performed contracts. Furthermore, in practice, besides the legal representative, any other person signing the contract requires authorization. Neglecting authorization risks substantial consequences such as signing by a person who has left the company or contracts whose validity is not recognized. Even for legal representatives, many companies limit their powers in the articles of association. For significant transactions, full understanding should be obtained before signing the contract.