BIZCHINA / Company laws

Contract Law of the People's Republic of China

Updated: 2006-04-17 10:00

Chapter 2 Conclusion of Contracts

Article 9 In concluding a contract, the parties shall have appropriate civil capacity of right and civil capacity of conduct. The parties may conclude a contract through an agent in accordance with the law.

Article 10 The parties may conclude a contract in written, oral or other forms. Where the laws or administrative regulations require a contract to be concluded in written form, the contract shall be in written form. If the parties agree to do so, the contract shall be concluded in written form.

Article 11 The written forms mean the forms which can show the described contents visibly, such as a written contractual agreement, letters, and data-telex (including telegram, telex, fax, EDI and e-mails).

Article 12 The contents of a contract shall be agreed upon by the parties, and shall contain the following clauses in general:

(1) title or name and domicile of the parties;
(2) contract object;
(3) quantity;
(4) quality;
(5) price or remuneration;
(6) time limit, place and method of performance;
(7) liability for breach of contract; and
(8) methods to settle disputes.

The parties may conclude a contract by reference to the model text of each kind of contract.

Article 13 The parties shall conclude a contract in the form of an offer and acceptance.

Article 14 An offer is a proposal hoping to enter into a contract with other parties. The proposal shall comply with the following stipulations:

(1) Its contents shall be detailed and definite;
(2) It indicates the proposal of the offeror to be bound in case of acceptance.


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