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CONTRACTLAWOFTHEPEOPLE'SREPUBLICOFCHINA
AdoptedandPromulgatedbytheSecondSessionoftheNinthNationalPeople'sCongressonMarch15,1999.

Translated&CompiledbyJohnJiang&HenryLiu

GENERALPRINCIPLES

ChapterOne:GeneralProvisions
Article1Purpose

ThisLawisformulatedinordertoprotectthelawfulrightsandinterestsofcontractparties,tosafeguardsocialandeconomicorder,andtopromotesocialistmodernization.

Article2DefinitionofContract;Exclusions

ForpurposesofthisLaw,acontractisanagreementbetweennaturalpersons,legalpersonsorotherorganizationswithequalstanding,forthepurposeofestablishing,altering,ordischargingarelationshipofcivilrightsandobligations.

Anagreementconcerninganypersonalrelationshipsuchasmarriage,adoption,guardianship,etc.shallbegovernedbyotherapplicablelaws.

Article3EqualStandingofParties

Contractpartiesenjoyequallegalstandingandneitherpartymayimposeitswillontheotherparty.

Article4RighttoEnterintoContractVoluntarily

Apartyisentitledtoenterintoacontractvoluntarilyunderthelaw,andnoentityorindividualmayunlawfullyinterferewithsuchright.

Article5Fairness

Thepartiesshallabidebytheprincipleoffairnessinprescribingtheirrespectiverightsandobligations.

Article6GoodFaith

Thepartiesshallabidebytheprincipleofgoodfaithinexercisingtheirrightsandperformingtheirobligations.

Article7Legality

Inconcludingorperformingacontract,thepartiesshallabidebytherelevantlawsandadministrativeregulations,aswellasobservesocialethics,andmaynotdisruptsocialandeconomicorderorharmthepublicinterests.

Article8BindingEffect;LegalProtection

Alawfullyformedcontractislegallybindingontheparties.Thepartiesshallperformtheirrespectiveobligationsinaccordancewiththecontract,andneitherpartymayarbitrarilyamendorterminatethecontract.

Alawfullyformedcontractisprotectedbylaw.

ChapterTwo:FormationofContracts
Article9Capacity;ContractthroughAgent

Inenteringintoacontract,thepartiesshallhavetheappropriatecapacitiesforcivilrightsandcivilacts.

Apartymayappointanagenttoenterintoacontractonitsbehalfunderthelaw.

Article10F