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LeRoyH.GrawEdD,DBA,C.P.M.,CPCM,CPP,CPPM,CISCMChina’sContractLawLeRoyH.GrawChina’sContractKnowledge/Skill/AbilityBeabletowriteacontractpreparedunderChina’sContractLawwhenrequired.Knowledge/Skill/AbilityBeableIntroductionContractLawofthePeople'sRepublicofChina(PRC)waspromulgatedonNationalDay,October1st,1999Itreplacedahostofexistinglaws,including:EconomicContractLawofthePRC(ECL)LawofthePRConEconomicContractsinvolvingForeignInterests(FECL)LawofthePRConTechnologyContractsContains23Chapterand428ArticlesIntroductionContractLawofthBackgroundThenewPRCContractLawmirrorsprovisionsoftheU.N.ConventionontheInternationalSaleofGoods(CISG),someideasoftheUniformCommercialCode,andsomemoderntrendsinWesternlaw.Italsoremovespunitiveprovisionsofpriorlaw,providesforremediesforbreach,contemplatesspecificperformance,andfrownsonpenaltyclausesnotrelatedtoactuallosses.BackgroundThenewPRCContractDefinitionofaContractArticle2ofthenewContractLawprovidesthat"acontractinthisLawreferstoanagreementestablishing,modifyingandterminatingthecivilrightsandobligationsbetweensubjectsofequalfooting".Acontractisanagreementbetweenthesubjects,nomattertheyarenaturalpersons,legalpersonsorotherorganizations.Acontractisanagreementofcivilrelationshipbeingconcludedandsignedbyandbetweenspecificcivilsubjects,thatis,byandbetweentwoormorenaturalpersons,byandbetweennaturalperson(s)andlegalperson(s)orotherorganization(s),byandbetweenlegalpersons,byandbetweenlegalperson(s)andotherorganization(s).DefinitionofaContractArticl中國(guó)合同法英文課件ScopeoftheNewLawExcluded:Contractsinvolvingpersonalstatusrelationship,suchasonmatrimony,adoption,guardianship,etc.,undertheprovisionsofotherlaws.Contractsforguaranteeorforinsurance.Othercontractsnotcoveredinthe“SpecificProvisions”.Allcontractsmustfollowthe“GeneralProvisions”ofthenewcontractlaw,eventhoughthereareseparatelawscoveringthesecontracttypes.ScopeoftheNewLawExcluded:ScopeoftheNewLawIncluded:Otherthanthoseexcluded,domesticcontractsandforeigncontractswhichinvolveforeigninterests.15specifically-listedkindsofcontractsfoundintheSpecificProvisions.Theseinclude:contractsforsalescontractsforsupplyanduseofelectricity,water,gasorheatingcontractsfordonationcontractsforloanscontractsforleasecontractsforfinancialleasecontractsforworkcontractsforconstructionprojectscontractsfortransportationcontractsfortechnologycontractsforstoragecontractsforwarehousingcontractsforcommissioncontractsforbrokeragecontractsforintermediation.ScopeoftheNewLawIncluded:WhatisIncluded?Article12Thecontentofacontractisdeterminedbythepartiesandgenerallyincludesthefollowingclauses:(1)designationsornamesandaddressesoftheparties;(2)thetargetedmatter;(3)quantity(4)quality;(5)priceorremuneration;(6)time,placeandmodeoffulfillment;(7)liabilityforbreachofcontract;and(8)disputesettlement.WhatisIncluded?Article12TSpecificPointsOralcontractsallowed.Bindingcontractsmaybewrittenororal,unlesslimitedbyagreementorlaw.SimilartotheCISG.UnliketheUCC,whichlimitsoralcontractsto$5,000.SpecificPointsOralcontractsSpecificPointsRecognitionofmoderntransactionmodes.Electronicallytransmittedcommunications(telegram,telex,facsimile,electronicdatainterchangeande-mail)constitutewritingsforpurposesofcontractlaw.SpecificPointsRecognitionofSpecificPointsGoodfaithinnegotiatingandperforming.Apartywho,inthenegotiatingprocess,deliberatelyconcealsimportantfactsorpretendstoconcludeacontractmaybeliableforcausinglosstotheotherparty.Goodfaithisrequiredintheperformanceofcontractualrightsandduties.SpecificPointsGoodfaithinnSpecificPointsGroundsforrevocation/modification.Whereseriousmisunderstandingliesatthebaseofthecontract,orwherethecontractismanifestlyunfairatthetimeitwasmade,apartymayseekmodificationorrevocation.SpecificPointsGroundsforrevSpecificPointsBusinesssecretsprotected.Apartywholearnsabusinesssecretoftheotherinthecontractingprocessrisksdamagesfordisclosingorunfairlyusingtheinformation.SpecificPointsBusinesssecretSpecificPointsAdhesionandStandardFormContracts.AkintoconsumerprotectionmeasuresinU.S.law,thenewlawinvalidatesclausesthatpurporttoimmunizeapartyfrom,interalia,causingpersonalinjuryorpropertydamagetotheother.SpecificPointsAdhesionandStSpecificPointsRulesofInterpretation.Incaseofdisputes,standardizedcontractswillbeinterpretedaccordingtogeneralunderstanding,andambiguitiesshallberesolvedinfavorofthenon-draftingparty.Whereinternationalcontractsspecify,forexample,thatboththeChineseandEnglishversionswillhaveequalvalidity,disparatemeaningsshallbeinterpretedaccordingtothepurposeofthecontract.SpecificPointsRulesofInterpSpecificPointsOfferandAcceptance.Incontrasttopriorlaw,fairlydetailedrulesnowgovernofferandacceptance,formationandrevocationofoffers.Forexample,anacceptanceisgenerallyeffectivewhennoticereachestheofferor.SpecificPointsOfferandAccepSpecificPointsAcceptancethatvariesthetermsoftheoffer.Anoffereewhosubstantiallyaltersthecontentsoftheofferwillnotbepermittedtobindtheofferee.SpecificPointsAcceptancethatAdditionalProvisionsThenewlaw:encouragescontractingpartiestohaverecoursetoinformaldisputeresolution.favorsarbitrationbutalsoaffirmsaccesstocourts.AdditionalProvisionsThenewlSummary/ConclusionsThenewContractLawofChinaisappropriateforthe“NewWorldEconomy”andChina’sentranceintotheWTO.ThenewContractLawisgenerallyconsistentwiththeUCCandCISGandmayevenbepreferredbyforeignfirmsdoingbusinessinChina.ThenewContractLawisrelativelystraightforwardanduncomplicated.Itisadefiniteimprovementovertheoldpatchworkof3separatelawswhichgovernedcontractspreviously.Summary/ConclusionsThenewCon中國(guó)合同法英文課件LeRoyH.GrawEdD,DBA,C.P.M.,CPCM,CPP,CPPM,CISCMChina’sContractLawLeRoyH.GrawChina’sContractKnowledge/Skill/AbilityBeabletowriteacontractpreparedunderChina’sContractLawwhenrequired.Knowledge/Skill/AbilityBeableIntroductionContractLawofthePeople'sRepublicofChina(PRC)waspromulgatedonNationalDay,October1st,1999Itreplacedahostofexistinglaws,including:EconomicContractLawofthePRC(ECL)LawofthePRConEconomicContractsinvolvingForeignInterests(FECL)LawofthePRConTechnologyContractsContains23Chapterand428ArticlesIntroductionContractLawofthBackgroundThenewPRCContractLawmirrorsprovisionsoftheU.N.ConventionontheInternationalSaleofGoods(CISG),someideasoftheUniformCommercialCode,andsomemoderntrendsinWesternlaw.Italsoremovespunitiveprovisionsofpriorlaw,providesforremediesforbreach,contemplatesspecificperformance,andfrownsonpenaltyclausesnotrelatedtoactuallosses.BackgroundThenewPRCContractDefinitionofaContractArticle2ofthenewContractLawprovidesthat"acontractinthisLawreferstoanagreementestablishing,modifyingandterminatingthecivilrightsandobligationsbetweensubjectsofequalfooting".Acontractisanagreementbetweenthesubjects,nomattertheyarenaturalpersons,legalpersonsorotherorganizations.Acontractisanagreementofcivilrelationshipbeingconcludedandsignedbyandbetweenspecificcivilsubjects,thatis,byandbetweentwoormorenaturalpersons,byandbetweennaturalperson(s)andlegalperson(s)orotherorganization(s),byandbetweenlegalpersons,byandbetweenlegalperson(s)andotherorganization(s).DefinitionofaContractArticl中國(guó)合同法英文課件ScopeoftheNewLawExcluded:Contractsinvolvingpersonalstatusrelationship,suchasonmatrimony,adoption,guardianship,etc.,undertheprovisionsofotherlaws.Contractsforguaranteeorforinsurance.Othercontractsnotcoveredinthe“SpecificProvisions”.Allcontractsmustfollowthe“GeneralProvisions”ofthenewcontractlaw,eventhoughthereareseparatelawscoveringthesecontracttypes.ScopeoftheNewLawExcluded:ScopeoftheNewLawIncluded:Otherthanthoseexcluded,domesticcontractsandforeigncontractswhichinvolveforeigninterests.15specifically-listedkindsofcontractsfoundintheSpecificProvisions.Theseinclude:contractsforsalescontractsforsupplyanduseofelectricity,water,gasorheatingcontractsfordonationcontractsforloanscontractsforleasecontractsforfinancialleasecontractsforworkcontractsforconstructionprojectscontractsfortransportationcontractsfortechnologycontractsforstoragecontractsforwarehousingcontractsforcommissioncontractsforbrokeragecontractsforintermediation.ScopeoftheNewLawIncluded:WhatisIncluded?Article12Thecontentofacontractisdeterminedbythepartiesandgenerallyincludesthefollowingclauses:(1)designationsornamesandaddressesoftheparties;(2)thetargetedmatter;(3)quantity(4)quality;(5)priceorremuneration;(6)time,placeandmodeoffulfillment;(7)liabilityforbreachofcontract;and(8)disputesettlement.WhatisIncluded?Article12TSpecificPointsOralcontractsallowed.Bindingcontractsmaybewrittenororal,unlesslimitedbyagreementorlaw.SimilartotheCISG.UnliketheUCC,whichlimitsoralcontractsto$5,000.SpecificPointsOralcontractsSpecificPointsRecognitionofmoderntransactionmodes.Electronicallytransmittedcommunications(telegram,telex,facsimile,electronicdatainterchangeande-mail)constitutewritingsforpurposesofcontractlaw.SpecificPointsRecognitionofSpecificPointsGoodfaithinnegotiatingandperforming.Apartywho,inthenegotiatingprocess,deliberatelyconcealsimportantfactsorpretendstoconcludeacontractmaybeliableforcausinglosstotheotherparty.Goodfaithisrequiredintheperformanceofcontractualrightsandduties.SpecificPointsGoodfaithinnSpecificPointsGroundsforrevocation/modification.Whereseriousmisunderstandingliesatthebaseofthecontract,orwherethecontractismanifestlyunfairatthetimeitwasmade,apartymayseekmodificationorrevocation.SpecificPointsGroundsforrevSpecificPointsBusinesssecretsprotected.Apartywholearnsabusinesssecretoftheotherinthecontractingprocessrisksdamagesfordisclosingorunfairlyusingtheinformation.SpecificPointsBusinesssecretSpecificPointsAdhesionandStandardFormContracts.AkintoconsumerprotectionmeasuresinU.S.law,thenewlawinvalidatesclausesthatpurporttoimmunizeapartyfrom,interalia,causingpersonalinjuryorpropertydamagetotheother.SpecificPointsAdhesionandStSpecificPointsRulesofInterpretation.Incaseofdisputes,standardizedcontractswillbeinterpretedaccordingtogeneralunderstanding,andambiguitiesshallberesolvedinfavorofthenon-draftingparty.Whereinternationalcontractsspecify,forexample,thatboththeChineseandEnglishversionswill
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