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Principle of china contract law

Time:2014-03-13 Hit:891

Principle of China contract law

  A contract is an agreement between the parties to create, alter or terminate certain civil legal relations in accordance with the law. On March 15, 1999, the national people's congress of china(NPC), the china national legislative body, adopted the law of contract of people's republic of china(the China Contract Law). It defined the concept of contract as an agreement between natural persons, legal persons or other organizations having equal status, for the purpose of establishing, altering, or terminating the relationship of civil rights and obligations which will be enforced by the China Contract Law, the Contract Law is regarded as the most significant law regulating civil and commercial affairs in the nation. However, before the legislation of the China Contract Law, there The law governing contracts before contract law act 1999 are as follows:

1. The economic contract law of PRC1982

2. The foreign-related economic contract law of pRC1985

3. The technology contract law of PRC 1987

  Fundamental principles of china contract law 

1. Principle of party equality

2. Principle of contract freedom

3. Principle of fairness and good faith

4. Principle of public interest

  Three functions of principles of contract law:

1. Guidance for legislation

2. Guidance for law interpretation

3. Guidance for contract interpretation

  Of all these principles, the principle of freedom of contract is the most important, enabling contracting parties, to the extent permitted by law, to choose their partners freely, to stipulate their respective rights and obligations freely, and to modify or terminate existing sales contracts freely.

The articles stating the principles of the contract law:

1. Article 3: The parties to the contract have equal legal status, and neither party may impose its will on the other.

2. Article 4: The parties shall, according to law, have the right to enter into a contract on their own free will, and no unit or person may unlawfully interfere.

3. Article 5: The parties shall observe the principle of equity in defining each other's rights and obligations.

4. Article 6: The parties shall observe the principle of good faith in exercising their rights and fulfilling their obligations.

5. Article 7: The parties shall, in making and fulfilling the contract, abide by laws and administrative regulations and respect social ethics, and may not disrupt the socioeconomic order nor impair social and public interests.


Author: shanghai lawyer





shanghai attorney