Contract Law of the People.docx

Contract Law of the People.docx

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ContractLawofthePeople

ContractLawofthePeople'sRepublicofChina

GENERALPROVISIONS

CHAPTER1GENERALPROVISIONS

CHAPTER2CONCLUSIONOFCONTRACTS

CHAPTER3EFFECTIVENESSOFCONTRACTS

CHAPTER4PERFORMANCEOFCONTRACTS

CHAPTER5MODIFICATIONANDASSIGNMENTOFCONTRACTS

CHAPTER6TERMINATIONOFTHERIGHTSANDOBLIGATIONSOFCONTRACTSCHAPTER7LIABILITYFORBREACHOFCONTRACTS

CHAPTER8MISCELLANEOUSPROVISIONS

SPECIFICPROVISIONS

CHAPTER9CONTRACTSFORSALES

CHAPTER10CONTRACTSFORSUPPLYANDUSEOFELECTRICITY,WATER,GASORHEATING

CHAPTER11CONTRACTSFORDONATION

CHAPTER12CONTRACTSFORLOANS

CHAPTER13CONTRACTSFORLEASE

CHAPTER14CONTRACTSFORFINANCIALLEASE

CHAPTER15CONTRACTSFORWORK

CHAPTER16CONTRACTSFORCONSTRUCTIONPROJECTS

CHAPTER17CONTRACTSFORTRANSPORTATION

SECTION1GENERALRULES

SECTION2CONTRACTSFORPASSENGERTRANSPORTATION

SECTION3CONTRACTSFORGOODSTRANSPORTATION

SECTION4CONTRACTSFORMULTI-MODALTRANSPORTATION

CHAPTER18CONTRACTSFORTECHNOLOGY

SECTION1GENERALRULES

SECTION2CONTRACTSFORTECHNOLOGYDEVELOPMENT

SECTION3CONTRACTSFORTECHNOLOGYTRANSFER

SECTION4CONTRACTSFORTECHNICALCONSULTANCYANDTECHNICALSERVICECHAPTER19CONTRACTSFORSTORAGE

CHAPTER20CONTRACTSFORWAREHOUSING

CHAPTER21CONTRACTSFORCOMMISSION

CHAPTER22CONTRACTSFORBROKERAGE

CHAPTER23CONTRACTSFORINTERMEDIATION

SUPPLEMENTARYPROVISIONS

Article1ThisLawisformulatedwithaviewtoprotectingthelawfulrightsandinterestsofthepartiestocontracts,maintainingthesocialeconomicorderandpromotingtheprogressofthesocialistmodernizationdrive.

Article2AcontractinthisLawreferstoanagreementestablishing,modifyingandterminatingthecivilrightsandobligationsbetweensubjectsofequalfooting,thatis,betweennaturalpersons,legalpersonsorotherorganizations.

Agreementsinvolvingpersonalstatusrelationshipsuchasonmatrimony,adoption,guardianship,etc.shallapplytheprovisionsofotherLaws.

Article3Thepartiestoacontractshallhaveequallegalstatus.Nopartymayimposeitswillontheotherparty.

Article4Thepartiesshallhavetherightstobevoluntarytoenterintoacontractinaccordancewiththelaw.Nounitorindividualmayillegallyinterfere.

Article5Thepartiesshallabidebytheprincipleoffairnessindefiningtherightsandobligationsofeachparty.

Article6Thepartiesmustactinaccordancewiththeprincipleofgoodfaith,nomatterinexercisingrightsorinperformingobligations.

Article7Inconcludingandperformingacontract,thepartiesshallabidebythelawsandadministrativeregulations,observesocialethics.Neitherpartymaydisruptthesocio-economicorderordamagethepublicinterests.

Article8Assoonasacontractisestablishedinaccordancewiththelaw,itshallbelegallybindingontheparties.Thepartiesshallperformtheirrespectiveobligationsinaccordancewiththetermsofthecontract.Neitherpartymayunilaterallymodifyorrescindthecontract.

Thecontractestablishedaccordingtolawshallbeundertheprotectionoflaw.

CHAPTER2CONCLUSIONOFCONTRACTS

Article9Inconcludingacontract,thepartiesshallhaveappropriatecivilcapacityofrightandcivilcapacityofconduct.

Thepartiesmayconcludeacontractthroughanagentinaccordancewiththelaw.

Article10Thepartiesmayconcludeacontractinwritten,oralorotherforms.

Wherethelawsoradministrativeregulationsrequireacontracttobeconcludedinwrittenform,thecontractshallbeinwrittenform.Ifthepartiesagreetodoso,thecontractshallbeconcludedinwrittenform.

Article11Thewrittenformsmeantheformswhichcanshowthedescribedcontentsvisibly,suchasawrittencontractualagreement,letters,anddata-telex（includingtelegram,telex,fax,EDIande-mails）.

Article12Thecontentsofacontractshallbeagreeduponbytheparties,andshallcontainthefollowingclausesingeneral:

（1）titleornameanddomicileoftheparties;

（2）contractobject;

（3）quantity;

（4）quality;

（5）priceorremuneration;

（6）timelimit,placeandmethodofperformance;

（7）liabilityforbreachofcontract;and

（8）methodstosettledisputes.

Thepartiesmayconcludeacontractbyreferencetothemodeltextofeachkindofcontract.

Article13Thepartiesshallconcludeacontractintheformofanofferandacceptance.

Article14Anofferisaproposalhopingtoenterintoacontractwithotherparties.Theproposalshallcomplywiththefollowingstipulations:

（1）Itscontentsshallbedetailedanddefinite;

（2）Itindicatestheproposaloftheofferortobeboundincaseofacceptance.

Article15Aninvitationforofferisaproposalforrequestingotherpartiestomakeofferstotheprincipal.Priceformsmailed,publicnoticesofauctionandtender,prospectusesandcommercialadvertisements,etc.areinvitationsforoffer.

Wherethecontentsofacommercialadvertisementcomplywiththetermsoftheoffer,itmayberegardedasanoffer.

Article16Anofferbecomeseffectivewhenitreachestheofferee.

Ifacontractisconcludedbymeansofdata-telex,andarecipientappointsaspecificsystemtoreceivethedata-telex,thetimewhenthedata-telexentersthesystemshallbethetimeofarrival;ifnospecificsystemisappointed,thetimewhenthedata-telexfirstentersanyoftherecipient'ssystemsshallberegardedasthetimeofarrival.

Article17Anoffermaybewithdrawn,ifthewithdrawalnoticereachestheoffereebeforeoratthesametimewhentheofferarrives.

Article18Anoffermayberevoked,iftherevocationreachestheoffereebeforeithasdispatchedanacceptance.

Article19Anoffermaynotberevoked,if

（1）theofferorindicatesafixedtimeforacceptanceorotherwiseexplicitlystatesthattheofferisirrevocable;or

（2）theoffereehasreasonstorelyontheofferasbeingirrevocableandhasmadepreparationforperformingthecontract.

Article20Anoffershallbenullandvoidunderanyofthefollowingcircumstances:

（1）Thenoticeofrejectionreachestheofferor;

（2）Theofferorrevokesitsofferinaccordancewiththelaw;

（3）Theoffereefailstomakeanacceptanceatthetimewhenthetimelimitforacceptanceexpires;

（4）Theoffereesubstantiallyaltersthecontentsoftheoffer.

Article21Anacceptanceisastatementmadebytheoffereeindicatingassenttoanoffer.

Article22Exceptthatitisbasedontransactionpracticesorthattheofferindicatesanacceptancemaybemadebyperforminganact,theacceptanceshallbemadebymeansofnotice.

Article23Anacceptanceshallreachtheofferorwithinthetimelimitfixedintheoffer.

Wherenotimelimitisfixedintheoffer,theacceptanceshallarriveinaccordancewiththefollowingprovisions:

（1）Iftheofferismadeindialogues,theacceptanceshallbemadeimmediatelyexceptasotherwiseagreeduponbytheparties;

（2）Iftheofferismadeinformsotherthanadialogue,theacceptanceshallarrivewithinareasonableperiodoftime.

Article24Wheretheofferismadeinaletteroratelegram,thetimelimitforacceptancecommencesfromthedateshownintheletterorfromthemomentthetelegramishandedinfordispatch.Ifnosuchdateisshownintheletter,itcommencesfromthedateshownontheenvelope.Whereanofferismadebymeansofinstantaneouscommunication,suchastelephoneorfacsimile,thetimelimitforacceptancecommencesfromthemomentthattheofferreachestheofferee.

Article25Acontractisestablishedwhentheacceptancebecomeseffective.

Article26Anacceptancebecomeseffectivewhenitsnoticereachestheofferor.Ifanacceptanceneedn'tbenotified,itbecomeseffectivewhenanactofacceptanceisperformedinaccordancewithtransactionpracticesorasrequiredintheoffer.

Whereacontractisconcludedintheformofdata-telex,thetimewhenanacceptancearrivesshallapplytheprovisionsofParagraph2,Article16ofthisLaw.

Article27Anacceptancemaybewithdrawn,butanoticeofwithdrawalshallreachtheofferorbeforethenoticeofacceptancereachestheofferororatthesametimewhentheacceptancereachestheofferor.

Article28Whereanoffereemakesanacceptancebeyondthetimelimitforacceptance,theacceptanceshallbeanewofferexceptthattheofferorinformstheoffereeoftheeffectivenessofthesaidacceptancepromptly.

Article29Iftheoffereedispatchestheacceptancewithinthetimelimitforacceptancewhichcanreachtheofferorinduetimeundernormalcircumstances,buttheacceptancereachestheofferorbeyondthetimelimitbecauseofotherreasons,theacceptanceshallbeeffective,exceptthat,theofferorinformstheoffereepromptlythatitdoesnotaccepttheacceptancebecauseitexceedsthetimelimitforacceptance.

Article30Thecontentsofanacceptanceshallcomplywiththoseoftheoffer.Iftheoffereesubstantiallymodifiesthecontentsoftheoffer,itshallconstituteanewoffer.Themodificationrelatingtothecontractobject,quality,quantity,priceorremuneration,timeorplaceormethodofperformance,liabilitiesforbreachofcontractandthesettlementofdisputes,etc.,shallconstitutethesubstantialmodificationofanoffer.

Article31Iftheacceptancedoesnotsubstantiallymodifiesthecontentsoftheoffer,itshallbeeffective,andthecontentsofthecontractshallbesubjecttothoseoftheacceptance,exceptasrejectedpromptlybytheofferororindicatedintheofferthatanacceptancemaynotmodifytheofferatall.

Article32Wherethepartiesconcludeacontractinwrittenform,thecontractisestablishedwhenbothpartiessignoraffixasealonit.

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