Yin-yang contracts show the power and the limitations of legal norms and corporate reputations
Researching Chinese companies and business executives, I recently came across a term I had never heard before. Yin-yang contracts (阴阳合同) refer to the presence of two parallel agreements a company signs with an individual or a business partner. The yang is the public one, to be submitted to investors, law enforcement agencies, and other scrutiny; the yin is the confidential one that contains the actual terms of operational ties between the two parties. Implicitly, the contents of the two are quite different, allowing the two parties to do one thing in practice while presenting something different.