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1、CONTRACT LAW OF THE PEOPLES REPUBLIC OF CHINA CONTRACT LAW OF THE PEOPLES REPUBLIC OF CHINA (Adopted and Promulgated by the Second Session of the Ninth National Peoples Congress on March 15, 1999 )CONTENTSGeneral ProvisionsChapter 1 General ProvisionsChapter 2 Formation of ContractsChapter 3 Validit
2、y of ContractsChapter 4 Performance of ContractsChapter 5 Amendment and Assignment of ContractsChapter 6 Discharge of Contractual Rights and Obligations Chapter 7 Liability for Breach of ContractsChapter 8 Miscellaneous ProvisionsSpecific ProvisionsChapter 9 Contracts for SalesChapter 10 Contracts f
3、or Supply and Use of Electricity, Water, Gas, or HeatingChapter 11 Contracts for DonationChapter 12 Contracts for LoansChapter 13 Contracts for LeaseChapter 14 Contracts for Financial LeaseChapter 15 Contracts for Hired WorksChapter 16 Contracts for Construction ProjectChapter 17 Contracts for Trans
4、portationChapter 18 Contracts for TechnologyChapter 19 Contracts for StorageChapter 20 Contracts for WarehousingChapter 21 Contracts for Agency AppointmentChapter 22 Contracts for BrokerageChapter 23 Contracts for IntermediationSupplementary ProvisionsChapter Two Formation of ContractsArticle 9 Capa
5、city; Contract through AgentIn entering into a contract, the parties shall have the appropriate capacities for civil rights and civil acts.A party may appoint an agent to enter into a contract on its behalf under the law.Article 10 Forms of Contract; Writing RequirementA contract may be made in a wr
6、iting, in an oral conversation, as well as in any other form.A contract shall be in writing if a relevant law or administrative regulation so requires. A contract shall be in writing if the parties have so agreed.Article 11 Definition of WritingA writing means a memorandum of contract, letter or ele
7、ctronic message (including telegram, telex, facsimile, electronic data exchange and electronic mail), etc. which is capable of expressing its contents in a tangible form.Article 12 Terms of ContractThe terms of a contract shall be prescribed by the parties, and generally include the following:(i) na
8、mes of the parties and the domiciles thereof;(ii) subject matter;(iii) quantity;(iv) quality;(v) price or remuneration;(vi) time, place and method of performance;(vii) liabilities for breach of contract;(viii) method of dispute resolution.The parties may enter into a contract by referencing a model
9、contract for the relevant contract category.Article 13 Offer-AcceptanceA contract is concluded by the exchange of an offer and an acceptance.Article 14 Definition of OfferAn offer is a partys manifestation of intention to enter into a contract with the other party, which shall comply with the follow
10、ing:(i) Its terms are specific and definite;(ii) It indicates that upon acceptance by the offeree, the offeror will be bound thereby.Article 15 Invitation to OfferAn invitation to offer is a partys manifestation of intention to invite the other party to make an offer thereto. A delivered price list,
11、 announcement of auction, call for tender, prospectus, or commercial advertisement, etc. is an invitation to offer.A commercial advertisement is deemed an offer if its contents meet the requirements of an offer.Article 16 Effectiveness of Offer, Offer through Electronic MessageAn offer becomes effec
12、tive when it reaches the offeree.When a contract is concluded by the exchange of electronic messages, if the recipient of an electronic message has designated a specific system to receive it, the time when the electronic message enters into such specific system is deemed its time of arrival; if no s
13、pecific system has been designated, the time when the electronic message first enters into any of the recipients systems is deemed its time of arrival.Article 17 Withdrawal of OfferAn offer may be withdrawn. The notice of withdrawal shall reach the offeree before or at the same time as the offer.Art
14、icle 18 Revocation of OfferAn offer may be revoked. The notice of revocation shall reach the offeree before it has dispatched a notice of acceptance.Article 19 Irrevocable OfferAn offer may not be revoked:(i) if it expressly indicates, whether by stating a fixed time for acceptance or otherwise, tha
15、t it is irrevocable;(ii) if the offeree has reason to regard the offer as irrevocable, and has undertaken preparation for performance.Article 20 Extinguishment of OfferAn offer is extinguished in any of the following circumstances:(i) The notice of rejection reaches the offeror;(ii) The offeror lawf
16、ully revokes the offer;(iii) The offeree fails to dispatch its acceptance at the end of the period for acceptance;(iv) The offeree makes a material change to the terms of the offer.Article 21 Definition of AcceptanceAn acceptance is the offerees manifestation of intention to assent to an offer.Artic
17、le 22 Mode of Acceptance; Acceptance by ConductAn acceptance shall be manifested by notification, except where it may be manifested by conduct in accordance with the relevant usage or as indicated in the offer.Article 23 Timely Dispatch of AcceptanceAn acceptance shall reach the offeror within the p
18、eriod prescribed in the offer.Where the offer does not prescribe a period for acceptance, the acceptance shall reach the offeror as follows:(i) Where the offer is made orally, the acceptance shall be dispatched immediately, unless otherwise agreed by the parties;(ii) Where the offer is made in a non
19、-oral manner, the acceptance shall reach the offeror within a reasonable time.Article 24 Commencement of the Period for AcceptanceWhere an offer is made by a letter or a telegram, the period for acceptance commences on the date shown on the letter or the date on which the telegram is handed in for d
20、ispatch. If the letter does not specify a date, the period commences on the posting date stamped on the envelop. Where the offer is made through an instantaneous communication device such as telephone or facsimile, etc., the period for acceptance commences once the offer reaches the offeree.Article
21、25 Contract Formed upon Effectiveness of AcceptanceA contract is formed once the acceptance becomes effective.Article 26 Effectiveness of AcceptanceA notice of acceptance becomes effective once it reaches the offeror. Where the acceptance does not require notification, it becomes effective once an a
22、ct of acceptance is performed in accordance with the relevant usage or as required by the offer.Where a contract is concluded by the exchange of electronic messages, the time of arrival of the acceptance shall be governed by Paragraph 2 of Article 16 hereof.Article 27 Withdrawal of AcceptanceAn acce
23、ptance may be withdrawn. The notice of withdrawal shall reach the offeror before or at the same time as the acceptance.Article 28 Late AcceptanceAn acceptance dispatched by the offeree after expiration of the period for acceptance constitutes a new offer, unless the offeror timely advises the offere
24、e that the acceptance is valid.Article 29 Delayed Transmission of AcceptanceIf the offeree dispatched its acceptance within the period for acceptance, and the acceptance, which would otherwise have reached the offeror in due time under normal circumstances, reaches the offeror after expiration of th
25、e period for acceptance due to any other reason, the acceptance is valid, unless the offeror timely advises the offeree that the acceptance has been rejected on grounds of the delay.Article 30 Acceptance Containing Material ChangeThe terms of the acceptance shall be identical to those of the offer.
26、A purported acceptance dispatched by the offeree which materially alters the terms of the offer constitutes a new offer. A change in the subject matter, quantity, quality, price or remuneration, time, place and method of performance, liabilities for breach of contract or method of dispute resolution
27、 is a material change to the terms of the offer.Article 31 Acceptance Containing Non-material ChangesAn acceptance containing nonmaterial changes to the terms of the offer is nevertheless valid and the terms thereof prevail as the terms of the contract, unless the offeror timely objects to such chan
28、ges or the offer indicated that acceptance may not contain any change to the terms thereof.Article 32 Time of Formation in Case of Memorandum of ContractWhere the parties enter into a contract by a memorandum of contract, the contract is formed when it is signed or sealed by the parties.Article 33 T
29、ime of Formation in Case of Letters or Electronic Messages; Confirmation LetterWhere the parties enter into a contract by the exchange of letters or electronic messages, one party may require execution of a confirmation letter before the contract is formed. The contract is formed upon execution of t
30、he confirmation letter.Article 34 Place of Formation; Electronic MessagesThe place where the acceptance becomes effective is the place of formation of a contract.Where a contract is concluded by the exchange of electronic messages, the recipients main place of business is the place of formation of t
31、he contract; if the recipient does not have a main place of business, its habitual residence is the place of formation of the contract. If the parties have agreed otherwise, such agreement prevails.Article 35 Place of Formation in Case of Memorandum of ContractWhere a contract is concluded by a memo
32、randum of contract, its place of formation is the place where the parties sign or seal the contract.Article 36 Effect of Failure to Conclude Contract in WritingWhere a contract is to be concluded by a writing as required by the relevant law or administrative regulation or as agreed by the parties, i
33、f the parties failed to conclude the contract in writing but one party has performed its main obligation and the other party has accepted the performance, the contract is formed.Article 37 Effect of Failure to Sign in Case of Memorandum of ContractWhere a contract is to be concluded by a memorandum
34、of contract, if prior to signing or sealing of the contract, one party has performed its main obligation and the other party has accepted the performance, the contract is formed.Article 38 Contract under State Mandatory PlanWhere the state has, in light of its requirements, issued a mandatory plan o
35、r state purchase order, the relevant legal persons and other organizations shall enter into a contract based on the rights and obligations of the parties prescribed by the relevant laws and administrative regulations.Article 39 Standard Terms; Duty to Call AttentionWhere a contract is concluded by w
36、ay of standard terms, the party supplying the standard terms shall abide by the principle of fairness in prescribing the rights and obligations of the parties and shall, in a reasonable manner, call the other partys attention to the provision(s) whereby such partys liabilities are excluded or limite
37、d, and shall explain such provision(s) upon request by the other party.Standard terms are contract provisions which were prepared in advance by a party for repeated use, and which are not negotiated with the other party in the course of concluding the contract.Article 40 Invalidity of Certain Standa
38、rd TermsA standard term is invalid if it falls into any of the circumstances set forth in Article 52 and Article 53 hereof, or if it excludes the liabilities of the party supplying such term, increases the liabilities of the other party, or deprives the other party of any of its material rights.Arti
39、cle 41 Dispute Concerning Construction of Standard TermIn case of any dispute concerning the construction of a standard term, such term shall be interpreted in accordance with common sense. If the standard term is subject to two or more interpretations, it shall be interpreted against the party supp
40、lying it. If a discrepancy exists between the standard term and a non-standard term, the non-standard term prevails.Article 42 Pre-contract LiabilitiesWhere in the course of concluding a contract, a party engaged in any of the following conducts, thereby causing loss to the other party, it shall be
41、liable for damages:(i) negotiating in bad faith under the pretext of concluding a contract;(ii) intentionally concealing a material fact relating to the conclusion of the contract or supplying false information;(iii) any other conduct which violates the principle of good faith.Article 43 Trade Secre
42、ts; Liability for Disclosure or Improper UseA party may not disclose or improperly use any trade secret which it became aware of in the course of negotiating a contract, regardless of whether a contract is formed. If the party disclosed or improperly used such trade secret, thereby causing loss to t
43、he other party, it shall be liable for damages.Chapter Three Validity of ContractsArticle 44 Effectiveness of ContractA lawfully formed contract becomes effective upon its formation.Where effectiveness of a contract is subject to any procedure such as approval or registration, etc. as required by a
44、relevant law or administrative regulation, such provision applies.Article 45 Conditions Precedent; Conditions Subsequent; Improper Impairment or FacilitationThe parties may prescribe that effectiveness of a contract be subject to certain conditions. A contract subject to a condition precedent become
45、s effective once such condition is satisfied. A contract subject to a condition subsequent is extinguished once such condition is satisfied.Where in order to further its own interests, a party improperly impaired the satisfaction of a condition, the condition is deemed to have been satisfied; where
46、a party improperly facilitated the satisfaction of a condition, the condition is deemed not to have been satisfied.Article 46 Contract TermThe parties may prescribe a term for a contract. A contract subject to a time of commencement becomes effective at such time. A contract subject to a time of exp
47、iration is extinguished at such time.Article 47 Contract by Person with Limited CapacityA contract concluded by a person with limited capacity for civil act is valid upon ratification by the legal agent thereof, provided that a contract from which such person accrues benefits only or the conclusion
48、of which is appropriate for his age, intelligence or mental health does not require ratification by his legal agent.The other party may demand that the legal agent ratify the contract within one month. If the legal agent fails to manifest his intention, he is deemed to have declined to ratify the contract. Prior to ratification of the contract, the other party in good faith is entitled to cancel the contract. Cancellation shall be effected by notification.Article 48 C