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Learn Mandarin online - Contract Law of the People's Republic of China

BIZCHINA / Company laws

Contract Law of the People's Republic of China

Updated: 2006-04-17 10:00

Article 36 A contract, which shall be concluded in written form as
provided for by the laws and administrative regulations or as agreed upon
by the parties, shall be established, as the parties do not use the
written form, but one party has performed the principal obligation and
the other party has received it.

Article 37 A contract, which is concluded in written form, shall be
established, if one party has performed its principal obligation and the
other party has received it before signature or affixing with a seal.

Article 38 In case the State issues a mandatory plan or a State
purchasing order task based on necessity, the relevant legal persons or
other organizations shall conclude contracts between them in accordance
with the rights and obligations as stipulated by the relevant laws and
administrative regulations.

Article 39 Where standard terms are adopted in concluding a contract, the
party which supplies the standard terms shall define the rights and
obligations between the parties abiding by the principle of fairness,
request the other party to note the exclusion or restriction of its
liabilities in reasonable ways, and explain the standard terms according
to the requirement of the other party.

Standard terms are clauses which are prepared in advance for general and
repeated use by one party and which are not negotiated with the other
party in concluding a contract.

Article 40 When standard terms are under the circumstances stipulated in
Article 52 and Article 53 of this Law, or the party which supplies the
standard terms exempts itself from its liabilities, weights the
liabilities of the other party, and excludes the rights of the other
party, the terms shall be null and void.

Article 41 If a dispute over the understanding of the standard terms
occurs, it shall be interpreted according to general understanding.

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