BIZCHINA / Company laws

Contract Law of the People's Republic of China

Updated: 2006-04-17 10:00

The right to claim the deposited object by the obligee shall be extinguished if it has not been exercised within 5 years as of the date of deposit. The deposited object shall be owned by the State with deduction of the deposit expenses.

Article 105 If the obligee exempts the obligor from the debt obligations wholly or in part, the whole or part of the rights and obligations of a contract shall be terminated.

Article 106 If the creditor's rights and debt obligation are assumed by the same person, the rights and obligations of a contract shall be terminated, except for those involving the interests of a third party.

Chapter 7 Liability for Breach of Contracts

Article 107 Where one party to a contract fails to perform the contract obligations or its performance fails to satisfy the terms of the continue to perform its obligations, to take remedial measures, or to compensate for losses.

Article 108 Where one party to a contract expresses explicitly or indicates through its acts that it will not perform the contract, the other party may demand it to bear the liability for the breach of contract before the expiry of the performance period.

Article 109 If one party to a contract fails to pay the price or remuneration, the other may request it to make the payment.

Article 110 Where one party to a contract fails to perform the non-monetary debt or its performance of non-monetary debt fails to satisfy the terms of the contract, the other party may request it to perform it except under any of the following circumstances:

(1) It is unable to be performed in law or in fact;
(2) The object of the debt is unfit for compulsory performance or the performance expenses are excessively high; or
(3) The creditor fails to request for the performance within a reasonable time period.


Page: 12345678910111213141516171819202122

(For more biz stories, please visit Industry Updates)