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.
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