Contract Law of the Peoples Republic of China.docx
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ContractLawofthePeoplesRepublicofChina
ContractLawofthePeople'sRepublicofChina
(AdoptedattheSecondSessionoftheNinthNationalPeople'sCongressonMarch15,1999andpromulgatedbyOrderNo.15ofthePresidentofthePeople’sRepublicofChinaonMarch15,1999)
Contents
GeneralProvisions
ChapterICommonProvisions
ChapterIIMakingoftheContract
ChapterIIIValidityoftheContract
ChapterIVFulfillmentoftheContract
ChapterVModificationandTransferoftheContract
ChapterVITerminationofRightsandObligationsundertheContract
ChapterVIILiabilityforBreachofContract
ChapterVIIIMiscellaneousProvisionsSpecificProvisions
ChapterIXPurchaseandSaleContracts
ChapterXContractsfortheSupplyandConsumptionofElectricity,Water,GasorHeat
ChapterXIDonationContracts
ChapterXIILoanContracts
ChapterXIIILeaseContracts
ChapterXIVContractsforFinancialLease
ChapterXVWorkContracts
ChapterXVIConstructionProjectContracts
ChapterXVIICarriageContracts
ChapterXVIIITechnologyContracts
ChapterXIXContractsofDeposit
ChapterXXWarehousingContracts
ChapterXXIEntrustmentContracts
ChapterXXIIBrokerageContracts
ChapterXXIIIIntermediationContracts
SupplementaryProvisions
GeneralProvisions
ChapterICommonProvisions
Article1ThisLawisenactedforthepurposeofprotectingthelegitimaterightsandinterestsofthepartiestocontracts,maintainingthesocio-economicorderandpromotingthesocialistmodernization.
Article2ForthepurposeofthisLaw,acontractmeansanagreementontheestablishment,alterationorterminationofacivilright-obligationrelationshipbetweennaturalpersons,legalpersonsorotherorganizationsassubjectswithequalstatus.
Agreementsonestablishingsuchpersonalrelationshipsasmarriage,adoptionandguardianshipshallbegovernedbytheprovisionsofotherlaws.
Article3Thepartiestothecontracthaveequallegalstatus,andneitherpartymayimposeitswillontheother.
Article4Thepartiesshall,pursuanttolaw,havetherighttoenterintoacontractontheirownfreewill,andnounitorpersonmayunlawfullyinterfere.
Article5Thepartiesshallobservetheprincipleofequityindefiningeachother'srightsandobligations.
Article6Thepartiesshallobservetheprincipleofgoodfaithinexercisingtheirrightsandfulfillingtheirobligations.
Article7Thepartiesshall,inmakingandfulfillingthecontract,abidebylawsandadministrativeregulationsandrespectsocialethics,andmaynotdisruptthesocio-economicordernorimpairsocialandpublicinterests.
Article8Alegallyexecutedcontracthaslegalbindingforceontheparties.Thepartiesshallfulfilltheirobligationsascontracted,andmaynotarbitrarilymodifyorterminatethecontract.
Alegallyexecutedcontractisprotectedbylaw.
ChapterIIMakingoftheContract
Article9Thepartiesshall,whenmakingacontract,havecorrespondingcapacityforcivilrightsandcivilconduct.
Apartymay,inaccordancewiththelaw,entrustanagenttomakeacontract.
Article10Thepartiesmay,whenmakingacontract,usewrittenform,verbalformoranyotherform.
Thewrittenformshallbeadoptediflawsoradministrativeregulationssorequire.Thewrittenformshallbeadoptedifthepartiessoagree.
Article11"Writtenform"asusedhereinmeansanyformwhichrenderstheinformationcontainedinacontractcapableofbeingreproducedintangibleformsuchasawrittenagreement,aletter,orelectronictext(includingtelegram,telex,facsimile,electronicdatainterchangeande-mail).
Article12Thecontentofacontractisdeterminedbythepartiesandgenerallyincludesthefollowingclauses:
(1)designationsornamesandaddressesoftheparties;
(2)thetargetedmatter;
(3)quantity;
(4)quality;
(5)priceorremuneration;
(6)time,placeandmodeoffulfillment;
(7)liabilityforbreachofcontract;and
(8)disputesettlement.
Thepartiesmaymakecontractswithreferencetovariousmodelcontractforms.
Article13Thepartiesshall,inmakingacontract,taketheformofofferandacceptance.
Article14An"offer"isanintentindicationshowingthedesiretoenterintoacontractwithothers,andtheintentindicationshallconformtothefollowingprovisions:
(1)thecontentindicatedshallbeconcreteanddefinite;
(2)theofferorshall,asisindicated,beboundbytheintentindicationuponitsacceptancebyanofferee.
Article15Aninvitationforofferisanintentindicationshowingthedesiretoreceiveoffersfromothers.Mailedordeliveredpricecatalogs,auctionannouncements,invitationsforbid,capital-raisingprospectusandcommercialadvertisementsaresuchinvitationsforoffer.
Acommercialadvertisementshall,ifitscontentconformstotheprovisionsregardingoffers,bedeemedanoffer.
Article16Anofferbecomeseffectivewhenitreachestheofferee.
Ifacontractismadeintheformoftextinelectronicdataandthereceiverhasdesignatedaspecialreceivingsystemtoreceivesuchdatatext,thetimeatwhichthetextinelectronicdataentersthedesignatedspecialsystemshallbethetimeofarrival;ifnospecialreceivingsystemisdesignated,thetimeatwhichthetextinelectronicdatafirstentersanyofthereceiver'ssystemsshallbethetimeofarrival.
Article17Anoffermaybewithdrawn.Thewithdrawalnoticeofanoffershallreachtheoffereebeforeoratthesametimeasthearrivaloftheofferattheofferee.
Article18Anoffermayberevoked.Therevocationnoticeofanoffershallreachtheoffereebeforethedispatchofanacceptancenoticebytheofferee.
Article19Anoffermaynotberevokedunderanyofthefollowingconditions:
(1)theofferorhasspecifiedatimelimitfortheacceptance,orhasexplicitlyindicatedinanyothermannertheirrevocabilityoftheoffer;
(2)therearegroundsfortheoffereetomaintaintheirrevocabilityoftheofferandtheoffereehasmadepreparationsforthefulfillmentofthecontract.
Article20Anofferlosesitseffectunderanyofthefollowingconditions:
(1)arejectionnoticeoftheofferhasreachedtheofferor;
(2)theofferorhasrevokedtheofferpursuanttolaw;
(3)whenthefixedtimelimitforacceptanceexpires,theoffereeundertakesnoacceptance;or
(4)theoffereemakesasubstantialchangeofthecontentoftheoffer.
Article21Anacceptanceisanassentindicationoftheoffereetoanoffer.
Article22Anacceptanceshallbemadeinformofanotice,unless,inlightoftradepracticesorasindicatedbytheoffer,theoffereemayindicatetheassentbyperforminganact.
Article23Anacceptanceshallreachtheofferorwithinthetimelimitfixedbytheoffer.
Ifnotimelimitisfixedbytheoffer,theacceptanceshallreachtheofferorinaccordancewiththefollowingprovisions:
(1)ifanofferismadeorally,acceptanceshallbemadepromptlyunlessthepartiesstipulateotherwise;and
(2)ifanofferisnotmadeorally,theacceptanceshallreachtheofferorwithinareasonableperiodoftime.
Article24Ifanofferismadethroughaletteroratelegram,thetimelimitforacceptancecommencesonthedateshownontheletteroronthedatethetelegramishandedinfordispatchor,ifnosuchdateisshownontheletter,fromthedateshownbythepostmarkoftheletter.Ifanofferismadebymeansofinstantaneouscommunicationssuchastelephoneorfacsimile,thetimelimitforacceptancecommencesatthemomentthattheofferreachestheofferee.
Article25Acontractisexecutedatthetimewhentheacceptancebecomeseffective.
Article26Theacceptancebecomeseffectivewhentheacceptancenoticereachestheofferor.Ifanacceptanceneedsnonotice,itbecomeseffectivewhenanactofacceptanceisperformedinlightoftradepracticesorasindicatedbytheoffer.
Whereacontractismadeintheformoftextinelectronicdata,theprovisionsofParagraph2,Article16ofthisLawshallbeapplicabletothetimeofarrivaloftheacceptance.
Article27Anacceptancemaybewithdrawn.Thewithdrawalnoticeoftheacceptanceshallreachtheofferorbeforeoratthesametimeastheacceptancenoticereachestheofferor.
Article28Iftheoffereemakesanacceptancebeyondthetimelimitforacceptance,itshallconstituteanewofferunlesstheofferornotifiestheoffereeintimethattheacceptanceiseffective.
Article29Ifanoffereemakeswithinthetimelimitforacceptanceanacceptancethatcouldreachtheofferorintimeundernormalconditionsbuthappenstoreachtheofferorbeyondthelimitduetootherreasons,theacceptanceshallbeeffectivenotwithstandingunlesstheofferornotifiestheoffereeintimethattheacceptanceisdeniedduetoitsdelayedarrival.
Article30Thecontentofanacceptanceshallbeconsistentwiththecontentoftheoffer.Iftheoffereeproposesanysubstantialchangetothecontentoftheoffer,itshallconstituteanewoffer.Changesrelatedtothetargetedmatter,quantity,quality,priceorremuneration,durationoffulfillment,placeandmodeoffulfillment,liabilityforbreachofcontractandmethodofdisputesettlementinacontractaresubstantialchangestothecontentofanoffer.
Article31Ifanacceptancemakesnon-substantialchangestothecontentoftheoffer,theacceptanceshallbeeffectivenotwithstandingandthecontentofthecontractshallthusbebasedonthecontentoftheacceptance,unlesstheofferorindicatesintimeitsobjectionthereto,orasindicatedintheoffer,theacceptancemaynotmakeanychangetothecontentoftheoffer.
Article32Ifthepartiesenterintoacontractintheformofacontractinstrument,thecontractisexecutedatthetimewhenbothpartiesputtheirsignaturesoraffixtheirseal