担保法英语版

人民法院版

GENERALPROVISIONS

CHAPTER1GENERALPROVISIONS

CHAPTER2CONCLUSIONOFCONTRACTS

CHAPTER3EFFECTIVENESSOFCONTRACTS

CHAPTER4PERFORMANCEOFCONTRACTS

CHAPTER5MODIFICATIONANDASSIGNMENTOFCONTRACTS

CHAPTER6TERMINATIONOFTHERIGHTSANDOBLIGATIONSOFCONTRACTSCHAPTER7LIABILITYFORBREACHOFCONTRACTS

CHAPTER8MISCELLANEOUSPROVISIONS

SPECIFICPROVISIONS

CHAPTER9CONTRACTSFORSALES

CHAPTER10CONTRACTSFORSUPPLYANDUSEOFELECTRICITY,WATER,GASORHEATING

CHAPTER11CONTRACTSFORDONATION

CHAPTER12CONTRACTSFORLOANS

CHAPTER13CONTRACTSFORLEASE

CHAPTER14CONTRACTSFORFINANCIALLEASE

CHAPTER15CONTRACTSFORWORK

CHAPTER16CONTRACTSFORCONSTRUCTIONPROJECTS

CHAPTER17CONTRACTSFORTRANSPORTATION

SECTION1GENERALRULES

SECTION2CONTRACTSFORPASSENGERTRANSPORTATION

SECTION3CONTRACTSFORGOODSTRANSPORTATION

SECTION4CONTRACTSFORMULTI-MODALTRANSPORTATION

CHAPTER18CONTRACTSFORTECHNOLOGY

SECTION1GENERALRULES

SECTION2CONTRACTSFORTECHNOLOGYDEVELOPMENT

SECTION3CONTRACTSFORTECHNOLOGYTRANSFER

SECTION4CONTRACTSFORTECHNICALCONSULTANCYANDTECHNICALSERVICECHAPTER19CONTRACTSFORSTORAGE

CHAPTER20CONTRACTSFORWAREHOUSING

CHAPTER21CONTRACTSFORCOMMISSION

CHAPTER22CONTRACTSFORBROKERAGE

CHAPTER23CONTRACTSFORINTERMEDIATION

SUPPLEMENTARYPROVISIONS

Article1ThisLawisformulatedwithaviewtoprotectingthelawfulrightsandinterestsofthepartiestocontracts,maintainingthesocialeconomicorderandpromotingtheprogressofthesocialistmodernizationdrive.

Article2AcontractinthisLawreferstoanagreementestablishing,modifyingandterminatingthecivilrightsandobligationsbetweensubjectsofequalfooting,thatis,betweennaturalpersons,legalpersonsorotherorganizations.

Agreementsinvolvingpersonalstatusrelationshipsuchasonmatrimony,adoption,guardianship,etc.shallapplytheprovisionsofotherLaws.

Article3Thepartiestoacontractshallhaveequallegalstatus.Nopartymayimposeitswillontheotherparty.

Article4Thepartiesshallhavetherightstobevoluntarytoenterintoacontractinaccordancewiththelaw.Nounitorindividualmayillegallyinterfere.

Article5Thepartiesshallabidebytheprincipleoffairnessindefiningtherightsandobligationsofeachparty.

Article6Thepartiesmustactinaccordancewiththeprincipleofgoodfaith,nomatterinexercisingrightsorinperformingobligations.

Article7Inconcludingandperformingacontract,thepartiesshallabidebythelawsandadministrativeregulations,observesocialethics.Neitherpartymaydisruptthesocio-economicorderordamagethepublicinterests.

Article8Assoonasacontractisestablishedinaccordancewiththelaw,itshallbelegallybindingontheparties.Thepartiesshallperformtheirrespectiveobligationsinaccordancewiththetermsofthecontract.Neitherpartymayunilaterallymodifyorrescindthecontract.

Thecontractestablishedaccordingtolawshallbeundertheprotectionoflaw.

CHAPTER2CONCLUSIONOFCONTRACTS

Article9Inconcludingacontract,thepartiesshallhaveappropriatecivilcapacityofrightandcivilcapacityofconduct.

Thepartiesmayconcludeacontractthroughanagentinaccordancewiththelaw.

Article10Thepartiesmayconcludeacontractinwritten,oralorotherforms.

Wherethelawsoradministrativeregulationsrequireacontracttobeconcludedinwrittenform,thecontractshallbeinwrittenform.Ifthepartiesagreetodoso,thecontractshallbeconcludedinwrittenform.

Article11Thewrittenformsmeantheformswhichcanshowthedescribedcontentsvisibly,suchasawrittencontractualagreement,letters,anddata-telex(includingtelegram,telex,fax,EDIande-mails).

Article12Thecontentsofacontractshallbeagreeduponbytheparties,andshallcontainthefollowingclausesingeneral:

(1)titleornameanddomicileoftheparties;

(2)contractobject;

(3)quantity;

(4)quality;

(5)priceorremuneration;

(6)timelimit,placeandmethodofperformance;

(7)liabilityforbreachofcontract;and

(8)methodstosettledisputes.

Thepartiesmayconcludeacontractbyreferencetothemodeltextofeachkindofcontract.

Article13Thepartiesshallconcludeacontractintheformofanofferandacceptance.

Article14Anofferisaproposalhopingtoenterintoacontractwithotherparties.Theproposalshallcomplywiththefollowingstipulations:

(1)Itscontentsshallbedetailedanddefinite;

(2)Itindicatestheproposaloftheofferortobeboundincaseofacceptance.

Article15Aninvitationforofferisaproposalforrequestingotherpartiestomakeofferstotheprincipal.Priceformsmailed,publicnoticesofauctionandtender,prospectusesandcommercialadvertisements,etc.areinvitationsforoffer.

Wherethecontentsofacommercialadvertisementcomplywiththetermsoftheoffer,itmayberegardedasanoffer.

Article16Anofferbecomeseffectivewhenitreachestheofferee.

Ifacontractisconcludedbymeansofdata-telex,andarecipientappointsaspecificsystemtoreceivethedata-telex,thetimewhenthedata-telexentersthesystemshallbethetimeofarrival;ifnospecificsystemisappointed,thetimewhenthedata-telexfirstentersanyoftherecipient ssystemsshallberegardedasthetimeofarrival.

Article17Anoffermaybewithdrawn,ifthewithdrawalnoticereachestheoffereebeforeoratthesametimewhentheofferarrives.

Article18Anoffermayberevoked,iftherevocationreachestheoffereebeforeithasdispatchedanacceptance.

Article19Anoffermaynotberevoked,if

(1)theofferorindicatesafixedtimeforacceptanceorotherwiseexplicitlystatesthattheofferisirrevocable;or

(2)theoffereehasreasonstorelyontheofferasbeingirrevocableandhasmadepreparationforperformingthecontract.

Article20Anoffershallbenullandvoidunderanyofthefollowingcircumstances:

(1)Thenoticeofrejectionreachestheofferor;

(2)Theofferorrevokesitsofferinaccordancewiththelaw;

(3)Theoffereefailstomakeanacceptanceatthetimewhenthetimelimitforacceptanceexpires;

(4)Theoffereesubstantiallyaltersthecontentsoftheoffer.

Article21Anacceptanceisastatementmadebytheoffereeindicatingassenttoanoffer.

Article22Exceptthatitisbasedontransactionpracticesorthattheofferindicatesanacceptancemaybemadebyperforminganact,theacceptanceshallbemadebymeansofnotice.

Article23Anacceptanceshallreachtheofferorwithinthetimelimitfixedintheoffer.

Wherenotimelimitisfixedintheoffer,theacceptanceshallarriveinaccordancewiththefollowingprovisions:

(1)Iftheofferismadeindialogues,theacceptanceshallbemadeimmediatelyexceptasotherwiseagreeduponbytheparties;

(2)Iftheofferismadeinformsotherthanadialogue,theacceptanceshallarrivewithinareasonableperiodoftime.

Article24Wheretheofferismadeinaletteroratelegram,thetimelimitforacceptancecommencesfromthedateshownintheletterorfromthemomentthetelegramishandedinfordispatch.Ifnosuchdateisshownintheletter,itcommencesfromthedateshownontheenvelope.Whereanofferismadebymeansofinstantaneouscommunication,suchastelephoneorfacsimile,thetimelimitforacceptancecommencesfromthemomentthattheofferreachestheofferee.

Article25Acontractisestablishedwhentheacceptancebecomeseffective.

Article26Anacceptancebecomeseffectivewhenitsnoticereachestheofferor.Ifanacceptanceneedn tbenotified,itbecomeseffectivewhenanactofacceptanceisperformedinaccordancewithtransactionpracticesorasrequiredintheoffer.

Whereacontractisconcludedintheformofdata-telex,thetimewhenanacceptancearrivesshallapplytheprovisionsofParagraph2,Article16ofthisLaw.

Article27Anacceptancemaybewithdrawn,butanoticeofwithdrawalshallreachtheofferorbeforethenoticeofacceptancereachestheofferororatthesametimewhentheacceptancereachestheofferor.

Article28Whereanoffereemakesanacceptancebeyondthetimelimitforacceptance,theacceptanceshallbeanewofferexceptthattheofferorinformstheoffereeoftheeffectivenessofthesaidacceptancepromptly.

Article29Iftheoffereedispatchestheacceptancewithinthetimelimitforacceptancewhichcanreachtheofferorinduetimeundernormalcircumstances,buttheacceptancereachestheofferorbeyondthetimelimitbecauseofotherreasons,theacceptanceshallbeeffective,exceptthat,theofferorinformstheoffereepromptlythatitdoesnotaccepttheacceptancebecauseitexceedsthetimelimitforacceptance.

Article30Thecontentsofanacceptanceshallcomplywiththoseoftheoffer.Iftheoffereesubstantiallymodifiesthecontentsoftheoffer,itshallconstituteanewoffer.Themodificationrelatingtothecontractobject,quality,quantity,priceorremuneration,timeorplaceormethodofperformance,liabilitiesforbreachofcontractandthesettlementofdisputes,etc.,shallconstitutethesubstantialmodificationofanoffer.

Article31Iftheacceptancedoesnotsubstantiallymodifiesthecontentsoftheoffer,itshallbeeffective,andthecontentsofthecontractshallbesubjecttothoseoftheacceptance,exceptasrejectedpromptlybytheofferororindicatedintheofferthatanacceptancemaynotmodifytheofferatall.

Article32Wherethepartiesconcludeacontractinwrittenform,thecontractisestablishedwhenbothpartiessignoraffixasealonit.

Article33Wherethepartiesconcludethecontractintheformofaletterordata-telex,etc.,onepartymayrequesttosignaletterofconfirmationbeforetheconclusionofthecontract.Thecontractshallbeestablishedatthetimewhentheletterofconfirmationissigned.

Article34Theplaceofeffectivenessofanacceptanceshallbetheplaceoftheestablishmentofthecontract.

Ifthecontractisconcludedintheformofdata-telex,themainbusinessplaceofthereceipientshallbetheplaceofestablishment.Ifnomainbusinessplace,itshabitualresidenceshallbeconsideredtobetheplaceofestablishment.Wherethepartiesagreeotherwise,theplaceofestablishmentshallbesubjecttothatagreement.

Article35Wherethepartiesconcludeacontractinwrittenform,theplacewherebothpartiessignoraffixasealshallbetheplacewherethecontractisestablished.

Article36Acontract,whichshallbeconcludedinwrittenformasprovidedforbythelawsandadministrativeregulationsorasagreeduponbytheparties,shallbeestablished,asthepartiesdonotusethewrittenform,butonepartyhasperformedtheprincipalobligationandtheotherpartyhasreceivedit.

Article37Acontract,whichisconcludedinwrittenform,shallbeeslablished,ifonepartyhasperformeditsprincipalobligationandtheotherpartyhasreceiveditbeforesignitureoraffixingwithaseal.

Article38IncasetheStateissuesamandatoryplanoraStatepurchasingordertaskbasedonnecessity,therelevantlegalpersonsorotherorganizationsshallconcludecontractsbetweentheminaccordancewiththerightsandobligationsasstipulatedbytherelevantlawsandadministrativeregulations.

Article39Wherestandardtermsareadoptedinconcludingacontract,thepartywhichsuppliesthestandardtermsshalldefinetherightsandobligationsbetweenthepartiesabidingbytheprincipleoffairness,requesttheotherpartytonotetheexclusionorrestrictionofitsliabilitiesinreasonableways,andexplainthestandardtermsaccordingtotherequirementoftheotherparty.

Standardtermsareclauseswhicharepreparedinadvanceforgeneralandrepeatedusebyonepartyandwhicharenotnegotiatiedwiththeotherpartyinconcludingacontract.

Article40WhenstandardtermsareunderthecircumstancesstipulatedinArticle52andArticle53ofthisLaw,orthepartywhichsuppliesthestandardtermsexemptsitselffromitsliabilities,weightstheliabilitiesoftheotherparty,andexcludestherightsoftheotherparty,thetermsshallbenullandvoid.

Article41Ifadisputeovertheunderstandingofthestandardtermsoccurs,itshallbeinterpretedaccordingtogeneralunderstanding.Wheretherearetwoormorekindsofinterpretation,aninterpretationunfavourabletothepartysupplyingthestandardtermsshallbepreferred.Wherethestandardtermsareinconsistentwithnon-standardterms,thelattershallbeadopted.

Article42Thepartyshallbeliablefordamagesifitisunderoneofthefollowingcircumstancesinconcludingacontractandthuscausinglossestotheotherparty:

(1)disguisingandpretendingtoconcludeacontract,andnegotiatinginbadfaith;

(2)concealingdeliberatelytheimportantfactsrelatingtotheconclusionofthecontractorprovidingdeliberatelyfalseinformation;

(3)performingotheractswhichviolatetheprincipleofgoodfaith.

Article43Abusinesssecretthepartieslearninconcludingacontractshallnotbedisclosedorunfairlyused,nomatterthecontractisestablishedornot.Thepartywhocausestheotherpartytosufferfromlossesduetodisclosingorunfairlyusingthebusinesssecretshallbeliablefordamages.

CHAPTER3EFFECTIVENESSOFCONTRACTS

Article44Thecontractestablishedaccordingtolawbecomeseffectivewhenitisestablished.

Withregardtocontractswhicharesubjecttoapprovalorregistrationasprovidedforbythelawsoradministrativeregulations,theprovisionsthereofshallbefollowed.

Article45Thepartiesmayagreeonsomecollateralconditionsrelatingtotheeffectivenessofacontract.Thecontractwithentry-into-forceconditionsshallbeeffectivewhensuchconditionsareaccomplished.Thecontractwithdissolvingconditionsshallbenullandvoidwhensuchconditionsareaccomplished.

Tounfairlypreventtheconditionsfrombeingaccomplishedbyonepartyforitsowninterestsshallberegardedasthoseconditionshavebeenaccomplished.Tounfairlypromotingtheaccomplishmentofsuchconditionsbyonepartyshallberegardedasnon-accomplishment.

Article46Thepartiesmayagreeonaconditionaltimeperiodastotheeffectivenessofthecontract.Acontractsubjecttoaneffectivetimeperiodshallcomeintoforcewhentheperiodexpires.Acontractwithterminationtimeperiodshallbecomeinvalidwhentheperiodexpires.

Article47Acontractconcludedbyapersonwithlimitedcivilcapacityofconductshallbeeffectiveafterbeingratifiedafterwardsbytheperson sstatutoryagent,butapureprofit-makingcontractoracontractconcludedwhichisappropriatetotheperson sage,intelligenceormentalhealthconditionsneednotberatifiedbytheperson sstatutoryagent.

Thecounterpartmayurgethestatutoryagenttoratifythecontractwithinonemonth.Itshallberegardedasarefusalofratificationthatthestatutoryagentdoesnotmakeanyexpression.Abonafidecounterparthastherighttowithdrawitbeforethecontractisratified.Thewithdrawalshallbemadebymeansofnotice.

Article48Acontractconcludedbyanactorwhohasnopowerofagency,whooverstepsthepowerofagency,orwhosepowerofagencyhasexpiredandyetconcludesitonbehalfoftheprincipal,shallhavenolegallybindingforceontheprincipalwithoutratificationbytheprincipal,andtheactorshallbeheldliable.

Thecounterpartmayurgetheprincipaltoratifyitwithinonemonth.Itshallberegardedasarefusalofratificationthattheprincipaldoesnotmakeanyexpression.Abonafidecounterparthastherighttowithdrawitbeforethecontractisratified.Thewithdrawalshallbemadebymeansofnotice.

Article49Ifanactorhasnopowerofagency,overstepsthepowerofagency,orthepowerofagencyhasexpiredandyetconcludesacontractintheprincipal sname,andthecounterparthasreasonstotrustthattheactorhasthepowerofagency,theactofagencyshallbeeffective.

Article50Whereastatutoryrepresentativeoraresponsiblepersonofalegalpersonorotherorganizationoverstepshis/herpowerandconcludesacontract,therepresentativeactshallbeeffectiveexceptthatthecounterpartknowsoroughttoknowthathe/sheisoversteppinghis/herpowers.

Article51Whereapersonhavingnorighttodisposalofpropertydisposesofotherpersons properties,andtheprincipalratifiestheactafterwardsorthepersonwithoutpowerofdisposalhasobtainedthepowerafterconcludingacontract,thecontractshallbevalid.

Article52Acontractshallbenullandvoidunderanyofthefollowingcircumstances:

(1)AcontractisconcludedthroughtheuseoffraudorcoercionbyonepartytodamagetheinterestsoftheState;

(2)MaliciouscollusionisconductedtodamagetheinterestsoftheState,acollectiveorathirdparty;

(3)Anillegitimatepurposeisconcealedundertheguiseoflegitimateacts;

(4)Damagingthepublicinterests;

(5)Violatingthecompulsoryprovisionsofthelawsandadministrativeregulations.

Article53Thefollowingimmunityclausesinacontractshallbenullandvoid:

(1)thosethatcausepersonalinjurytotheotherparty;

(2)thosethatcausepropertydamagestotheotherpartyasaresultofdeliberateintentorgrossfault.

Article54Apartyshallhavetherighttorequestthepeople scourtoranarbitrationinstitutiontomodifyorrevokethefollowingcontracts:

(1)thoseconcludedasaresultofseriousmisunderstanding;

(2)thosethatareobviouslyunfairatthetimewhenconcludingthecontract.

Ifacontractisconcludedbyonepartyagainsttheotherparty strueintentionsthroughtheuseoffraud,coercionorexploitationoftheotherparty sunfavorableposition,theinjuredpartyshallhavetherighttorequestthepeople scourtoranarbitrationinstitutiontomodifyorrevokeit.

Whereapartyrequestsformodification,thepeople scourtorthearbitrationinstitutionmaynotrevokethecontract.

Article55Therighttorevokeacontractshallextinguishunderanyofthefollowingcircumstances:

(1)Apartyhavingtherighttorevokethecontractfailstoexercisetherightwithinoneyearfromthedaythatitknowsoroughttoknowtherevokingcauses;

(2)Apartyhavingtherighttorevokethecontractexplicitlyexpressesorconductsanacttowaivetherightafteritknowstherevokingcauses.

Article56Acontractthatisnullandvoidorrevokedshallhavenolegallybindingforceeverfromtheverybeginning.Ifpartofacontractisnullandvoidwithoutaffectingthevalidityoftheotherparts,theotherpartsshallstillbevalid.

Article57Ifacontractisnullandvoid,revokedorterminated,itshallnotaffectthevalidityofthedisputesettlementclausewhichisindependentlyexistinginthecontract.

Article58Thepropertyacquiredasaresultofacontractshallbereturnedafterthecontractisconfirmedtobenullandvoidorhasbeenrevoked;wherethepropertycannotbereturnedorthereturnisunnecessary,itshallbereimbursedatitsestimatedprice.Thepartyatfaultshallcompensatetheotherpartyforlossesincurredasaresulttherefrom.Ifbothpartiesareatfault,eachpartyshallrespectivelybeliable.

Article59IfthepartieshavemaliciouslyconductedcollusiontodamagetheinterestsoftheState,acollectiveorathirdparty,thepropertythusacpuiredshallbeturnedovertotheStateorreturnedtothecollectiveorthethirdparty.

CHAPTER4PERFORMANCEOFCONTRACTS

Article60Thepartiesshallperformtheirobligationsthoroughlyaccordingtothetermsofthecontract.

Thepartiesshallabidebytheprincipleofgoodfaithandperformtheobligationsofnotice,assistanceandmaintainingconfidentiality,etc.basedonthecharacterandpurposeofthecontractorthetransactionpractices.

Article61Where,afterthecontractbecomeseffective,thereisnoagreementinthecontractbetweenthepartiesonthetermsregardingquality,priceorremunerationandplaceofperformance,etc.orsuchagreementisunclear,thepartiesmayagreeuponsupplementarytermsthroughconsultation.Incaseofafailureindoingso,thetermsshallbedeterminedfromthecontextofrelevantclausesofthecontractorbytransactionpractices.

Article62Iftherelevanttermsofacontractareunclear,norcanitbedeterminedaccordingtotheprovisionsofArticle61ofthisLaw,theprovisionsbelowshallbeapplied:

(1)Ifqualityrequirementsareunclear,theStatestandardsortradestandardsshallbeapplied;iftherearenoStatestandardsortradestandards,generallyheldstandardsorspecificstandardsinconformitywiththepurposeofthecontractshallbeapplied.

(2)Ifthepriceorremunerationisunclear,themarketpriceoftheplaceofperformanceatthetimeconcludingthecontractshallbeapplied;ifthegovernment-fixedpriceorgovernment-directedpriceshallbefollowedinaccordancewiththelaw,theprovisionsofthelawshallbeapplied.

(3)Iftheplaceofperformanceisunclear,andthepaymentiscurrency,theperformanceshallbeeffectedattheplaceoflocationofthepartyreceivingthepayment;ifrealestateistobedelivered,theperformanceshallbeeffectedattheplaceoflocationoftherealestate;incaseofothercontractobjects,theperformanceshallbeeffectedattheplaceoflocationofthepartyfulfillingtheobligations.

(4)Ifthetimelimitforperformanceisunclear,theobligormayatanytimefulfilltheobligationstowardstheobligee;theobligeemayalsodemandatanytimethattheobligorperformstheobligations,butatimeperiodfornecessarypreparationshallbegiventotheobligor.

(5)Ifthemethodofperformanceisunclear,themethodwhichisadvantageoustorealizethepurposeofthecontractshallbeadopted.

(6)Iftheburdenoftheexpensesofperformanceisunclear,thecostshallbeassumedbytheobligor.

Article63Incaseswherethegovernment-fixedpriceorgovernment-directedpriceisfollowedinacontract,ifthesaidpriceisreadjustedwithinthetimelimitfordeliveryasstipulatedinthecontract,thepaymentshallbecalculatedaccordingtothepriceatthetimeofdelivery.Ifthedeliveryoftheobjectisdelayedandthepricehasrisen,theoriginalpriceshallbeadopted;whilethepricehasdropped,thenewpriceshallbeadopted.Intheeventofdelayintakingdeliveryoftheobjectorlatepayment,ifthepricehasrisen,thenewpriceshallbeadopted;whilethepricehasdropped,theoriginalpriceshallbeadopted.

Article64Wherethepartiesagreethattheobligorperformstheobligationstoathirdparty,andtheobligorfailstoperformtheobligationstothethirdpartyortheperformancedoesnotmeetthetermsofthecontract,theobligorshallbeliabletotheobligeeforthebreachofcontract.

Article65Wherethepartiesagreethatathirdpartyperformstheobligationstotheobligee,andthethirdpartyfailstoperformtheobligationsortheperformancedoesnotmeetthetermsofthecontract,theobligorshallbeliabletotheobligeeforthebreachofcontract.

Article66Ifbothpartieshaveobligationstowardseachotherandthereisnoorderofpriorityinrespectoftheperformanceofobligations,thepartiesshallperformtheobligationssimultaneously.Onepartyhastherighttorejecttheotherparty srequestforperformancebeforetheotherparty sperformance.Onepartyhastherighttorejecttheotherparty scorrespondingrequestforperformanceiftheotherparty sperformancedoesnotmeetthetermsofthecontract.

Article67Wherebothpartieshaveobligationstowardseachotherandtherehasbeenanorderofpriorityinrespectoftheperformance,andthepartywhichshallrenderitsperformancefirsthasnotrenderedtheperformance,thepartywhichmayrenderitsperformancelatelyhastherighttorejecttheotherparty srequestforperformance.Wherethepartywhichshallrenderitsperformancefirstviolatesthetermsofacontractwhilefulfillingtheobligations,thepartywhichmayrenderitsperformancelatelyhastherighttorejecttheotherparty scorrespondingrequestforperformance.

Article68Oneparty,whichshallrenderitsperformancefirst,maysuspenditsperformance,ifithasconclusiveevidencethattheotherpartyisunderanyofthefollowingcircumstances:

(1)Itsbusinessconditionsareseriouslydeteriorating;

(2)Itmovesawayitspropertyandtakesoutitscapitalsecretlytoevadedebt;

(3)Itlosesitscommercialcredibility;

(4)Othercircumstancesshowingthatitlosesorispossibletolosethecapacityofcredit.

Whereapartysuspendsperformanceofacontractwithoutconclusiveevidence,itshallbeliableforthebreachofcontract.

Article69OnepartytoacontractwhichsuspendsitsperformanceofthecontractinaccordancewiththeprovisionsofArticle68ofthisLaw,shallpromptlyinformtheotherpartyofsuchsuspension.Itshallresumeitsperformanceofthecontractwhentheotherpartyprovidesasureguarantee.Afterthesuspensionoftheperformance,iftheotherpartydoesnotreinstateitscapacityofperformanceanddoesnotprovidewithasureguarantee,thepartysuspendingperformanceofthecontractmayrescindthecontract.

Article70Iftheobligeedoesnotnotifytheobligoritsseparation,mergerorachangeofitsdomicilesoastomakeitdifficultfortheobligortoperformtheobligations,theobligormaysuspendtheperformanceofthecontractorhavetheobjectdeposited.

Article71Theobligeemayrejectanadvanceperformanceofthecontractbytheobligor,exceptthattheadvanceperformancedoesnotdamagetheinterestsoftheobligee.

Additionalexpensescausedtotheobligeebyadvanceperformanceshallbebornebytheobligor.

Article72Theobligeemayrejectthepartialperformanceofthecontractbytheobligor,exceptthatthepartialperformancedoesnotdamagetheinterestsoftheobligee.

Additionalexpensescausedtotheobligeebypartialperformanceshallbebornebytheobligor.

Article73Iftheobligorisindolentinexercisingitsduecreditor sright,thusdamagingtheinterestsoftheobligee,theobligeemayrequestthepeople scourtforsubrogationinitsownname,exceptthatthecreditor srightexclusivelybelongstotheobligor.

Thesubrogationshallbeexercisedwithinthescopeofthecreditor srightoftheobligee.Thenecessaryexpensescausedtotheobligeebyexercisingsubrogationshallbebornebytheobligor.

Article74Iftheobligorrenouncesitsduecreditor srightortransfersitspropertygratis,thusdamagingtheinterestsoftheobligee,theobligeemayrequestthepeople scourttorevoketheobligor sact.Iftheobligortransfersitspropertyatanobviouslyunreasonablelowprice,thusdamagingtheinterestsoftheobligee,andthetransfereeknowssuchsituation,theobligeemayrequestthepeople scourttorevoketheobligor sact.

Therightofrevocationshallbeexercisedwithinthescopeofthecreditor srightoftheobligee.Thenecessaryexpensescausedtotheobligeebyexercisingtherightofrevocationshallbebornebytheobligor.

Article75Thetimelimitforexercisingtherightofrevocationshallbeoneyear,commencingfromthedaywhentheobligeeisawareoroughttobeawareofthecausesofrevocation.Iftherightofrevocationhasnotbeenexercisedwithinfiveyearsfromthedaywhentheactoftheobligortakesplace,therightofrevocationshallbeextinguished.

Article76Afteracontractbecomeseffective,thepartiesmaynotrejecttoperformtheobligationsofthecontractbecauseofmodificationofthetitleornameoftheparties,orchangeofthestatutoryrepresentative,theresponsiblepersonortheexecutivepersonoftheparties.

CHAPTER5MODIFICATIONANDASSIGNMENTOFCONTRACTS

Article77Acontractmaybemodifiedifthepartiesreachaconsensusthroughconsultation.

Ifthelawsoradministrativeregulationsstipulatethatacontractshallbemodifiedthroughtheproceduresofapprovalorregistration,suchprovisionsshallbefollowed.

Article78Ifthecontentsofthemodifiedcontractagreedbythepartiesareunclear,itshallbepresumedthatthecontractisnotmodified.

Article79Theobligeemayassign,whollyorinpart,itsrightsunderthecontracttoathirdparty,exceptforthefollowingcircumstances:

(1)Therightsunderthecontractmaynotbeassignedaccordingtothecharacterofthecontract;

(2)Therightsunderthecontractmaynotbeassignedaccordingtotheagreementbetweentheparties;

(3)Therightsunderthecontractmaynotbeassignedaccordingtotheprovisionsofthelaws.

Article80Anobligeeassigningitsrightsshallnotifytheobligor.Withoutnotifyingtheobligor,theassignmentshallnotbecomeeffectivetotheobligor.

Thenoticeofassignmentofrightsmaynotberevoked,unlesstheassigneeagreesthereupon.

Article81Iftheobligeeassignsitsrights,theassigneeshallacquirethecollateralrightsrelatingtotheprincipalrights,exceptthatthecollateralrightsexclusivelybelongtotheobligee.

Article82Aftertheobligorreceivesthenoticeofassignmentofthecreditor srights,itmayclaimitsdemurinrespectoftheassignortotheassignee.

Article83Whentheobligorreceivesthenoticeofassignmentofthecreditor srights,andtheobligorhasduecreditor srightstotheassignor,andthecreditor srightsoftheobligoraredueinprioritytotheassignedcreditor srightsordueatthesametime,theobligormayclaimtooffseteachothertotheassignee.

Article84Iftheobligorassignsitsobligations,whollyorinpart,toathirdparty,itshallobtainconsentfromtheobligeefirst.

Article85Iftheobligorassignsitsobligationstoathirdparty,thenewobligormayclaimthedemurbelongingtotheoriginalobligorinrespectoftheobligee.

Article86Iftheobligorassignsitsobligationstoathirdparty,thenewobligorshallassumethecollateralobligationsrelatingtotheprincipalobligations,exceptthattheobligationsexclusivelybelongtotheoriginalobligor.

Article87Wherethelawsoradministrativeregulationsstipulatethattheassignmentofrightsortransferofobligationsshallgothroughapprovalorregistrationprocedures,suchprovisionsshallbefollowed.

Article88Onepartytoacontractmayassignitsrightsandobligationsunderthecontracttogethertoathirdpartywiththeconsentoftheotherparty.

Article89Ifonepartytoacontractassignsitsrightsandobligationsunderthecontracttogethertoathirdparty,theprovisionsofArticle79,Article81to83,andArticle85to87ofthisLawshallbeapplied.

Article90Ifonepartytoacontractismergedafterthecontracthasbeenconcluded,thelegalpersonorotherorganizationestablishedafterthemergershallexercisethecontractrightsandperformthecontractobligations.Ifonepartyisseparatedafterthecontracthasbeenconcluded,thelegalpersonsorotherorganizationsthusestablishedaftertheseparationshallexercisethecontractrightsorassumethecontractobligationsjointlyandseverally.

CHAPTER6TERMINATIONOFTHERIGHTSANDOBLIGATIONSOFCONTRACTS

Article91Therightsandobligationsofcontractsshallbeterminatedunderanyofthefollowingcircumstances:

(1)Thedebtobligationshavebeenperformedinaccordancewiththetermsofthecontract;

(2)Thecontracthasbeenrescinded;

(3)Thedebtshavebeenoffsetagainsteachother;

(4)Theobligorhasdepositedtheobjectaccordingtolaw;

(5)Thedebtobligationshavebeenexemptedbytheobligee;

(6)Thecreditor srightsanddebtobligationsareassumedbythesameperson;or

(7)Othercircumstancesforterminationasstipulatedbythelawsoragreeduponbythepartiesinthecontract.

Article92Whentherightsandobligationsofcontractsareterminated,thepartiestoacontractshall,abidingbytheprincipleofgoodfaith,performsuchobligationsasmakinganotice,providingassistanceandmaintainingconfidentialityaccordingtotransactionpractices.

Article93Acontractmayberescindedifthepartiestothecontractreachaconsensusthroughconsultation.

Thepartiestoacontractmayagreeupontheconditionstorescindthecontractbyoneparty.Whensuchconditionsareaccompanised,thepartyentitledtorescindthecontractmayrescindit.

Article94Thepartiestoacontractmayrescindthecontractunderanyofthefollowingcircumstances:

(1)Thepurposeofthecontractisnotabletoberealizedbecauseofforcemajeure;

(2)Onepartytothecontractexpressesexplicitlyorindicatesthroughitsacts,beforetheexpiryoftheperformanceperiod,thatitwillnotperformtheprincipaldebtobligations;

(3)Onepartytothecontractdelaysinperformingtheprincipaldebtobligationsandfails,afterbeingurged,toperformthemwithinareasonabletimeperiod;

(4)Onepartytothecontractdelaysinperformingthedebtobligationsorcommitsotheractsinbreachofthecontractsothatthepurposeofthecontractisnotabletoberealized;or

(5)Othercircumstancesasstipulatedbylaw.

Article95Wherethelawsstipulateorthepartiesagreeuponthetimelimittoexercisetherighttorescindthecontract,andnopartyexercisesitwhenthetimelimitexpires,thesaidrightshallbeextinguished.

Wherethelawdoesnotstipulateorthepartiesmakenoagreementuponthetimelimittoexercisetherighttorescindthecontract,andnopartyexercisesitwithinareasonabletimeperiodafterbeingurged,thesaidrightshallbeextinguished.

Article96OnepartytoacontractshallmakeanoticetotheotherpartyifitadvancestorescindthecontractaccordingtotheprovisionsofParagraph2,Article93andArticle94ofthisLaw.Thecontractshallberescindeduponthearrivalofthenoticeattheotherparty.Thepartymay,iftheotherpartydisagreestherewith,requestthepeople scourtoranarbitrationinstitutiontoconfirmtheeffectivenessofrescindingthecontract.

Wherethelawsoradministrativeregulationsstipulatethattherescindingofacontractshallgothroughtheformalitiesofapprovalandregistration,theprovisionsthereofshallbefollowed.

Article97Ifacontracthasnotyetbeenperformed,itsperformanceshallbeterminatedaftertherescission.Ifithasbeenperformed,apartytothecontractmay,inlightoftheperformanceandthecharacterofthecontract,requestthattheoriginalstatusberestoredorotherremedialmeasuresbetaken.

Article98Theterminationoftherightsandobligationsofacontractmaynotaffecttheforceofthesettlementandclearanceclausesinthecontract.

Article99Wherethepartiestoacontracthavedebtsduemutuallyandthecategoryandcharacterofthedebtsarethesame,anypartymayoffsethisdebtagainsttheother sone,exceptthatthedebtsmaynotbeoffsetaccordingtotheprovisionsofthelawsortothecharacterofthecontract.

Anypartyadvancingtooffsetthedebtsshallmakeanoticetotheotherparty.Suchnoticeshallbeeffectiveuponthearrivalattheotherparty.Theoffsetmaynotbeaccompaniedbyanyconditionsortimelimit.

Article100Wherethepartiestoacontracthavedebtsduemutuallyandthecategoryandcharacterofthedebtsaredifferent,thedebtsmaybeoffsetagainsteachotherifbothpartieshavereachedaconsensusthroughconsultation.

Article101Theobligormaydeposittheobjectifthedebtobligatconsaredifficulttobeperformedunderanyofthefollowingcircumstances:

(1)Theobligeerefusestoacceptthemwithoutjustifiedreasons;

(2)Theobligeeismissing;

(3)Theobligeeisdeceasedandtheheirisnotyetdetermined,ortheobligeehaslosthisconductcapacityandtheguardianisnotyetdetermined;or

(4)Othercircumstancesasstipulatedbylaw.

Iftheobjectisnotfittobedepositedorthedepositexpensesareexcessivelyhigh,theobligormay,accordingtolaw,auctionorselltheobjectanddepositthemoneyobtainedtherefrom.

Article102Aftertheobjectisdeposited,theobligorshall,exceptthattheobligeeismissing,makeanoticepromptlytotheobligeeortheobligee sheirorguardian.

Article103Theriskofdamagetoandmissingoftheobjectafterbeingdepositedshallbebornebytheobligee.Duringtheperiodofdepositing,thefruitsgeneratedbytheobjectshallbelongtotheobligee.Thedepositexpensesshallbebornebytheobligee.

Article104Theobligeemayclaimthedepositedobjectatanytime.However,iftheobligeeisunderadebtduetotheobligorthedepositauthoritiesshallrefusehimtoclaimthedepositedobjectattherequestoftheobligor,beforetheobligeehasperformedhisdebtobligationsorprovidesaguaranty.

Therighttoclaimthedepositedobjectbytheobligeeshallbeextinguishedifithasnotbeenexercisedwithin5yearsasofthedateofdeposit.ThedepositedobjectshallbeownedbytheStatewithdeductionofthedepositexpenses.

Article105Iftheobligeeexemptstheobligorfromthedebtobligationswhollyorinpart,thewholeorpartoftherightsandobligationsofacontractshallbeterminated.

Article106Ifthecreditor srightsanddebtobligationsareassumedbythesameperson,therightsandobligationsofacontractshallbeterminated,exceptforthoseinvolvingtheinterestsofathirdparty.

CHAPTER7LIABILITYFORBREACHOFCONTRACTS

Article107Whereonepartytoacontractfailstoperformthecontractobligationsoritsperformancefailstosatisfythetermsofthecontract,thepartyshallbearsuchliabilitiesforbreachofcontractastocontinuetoperformitsobligations,totakeremedialmeasures,ortocompensateforlosses.

Article108Whereonepartytoacontractexpressesexplicitlyorindicatesthroughitsactsthatitwillnotperformthecontract,theotherpartymaydemandittobeartheliabilityforthebreachofcontractbeforetheexpirayoftheperformanceperiod.

Article109Ifonepartytoacontractfailstopaythepriceorremuneration,theotherpartymayrequestittomakethepayment.

Article110Whereonepartytoacontractfailstoperformthenon-monetarydebtoritsperformanceofnon-monetarydebtfailstosatisfythetermsofthecontract,theotherpartymayrequestittoperformitexceptunderanyofthefollowingcircumstances:

(1)Itisunabletobeperformedinlaworinfact;

(2)Theobjectofthedebtisunfitforcompulsoryperformanceortheperformanceexpensesareexcessivelyhigh;or

(3)Thecreditorfailstorequestfortheperformancewithinareasonabletimeperiod.

Article111Ifthequalityfailstosatisfythetermsofthecontract,thebreachofcontractdamagesshallbeborneaccordingtothetermsofthecontractagreeduponbytheparties.Ifthereisnoagreementinthecontractontheliabilityforbreachofcontractorsuchagreementisunclear,norcanitbedeterminedinaccordancewiththeprovisionsofArticle61ofthisLaw,thedamagedpartymay,inlightofthecharacteroftheobjectandthedegreeoflosses,reasonablychoosetorequesttheotherpartytobeartheliabilitiesforthebreachofcontractsuchasrepairing,substituting,reworking,returningthegoods,orreducingthepriceorremuneration.

Article112Whereonepartytoacontractfailstoperformthecontractobligationsoritsperformancefailstosatisfythetermsofthecontract,thepartyshall,afterperformingitsobligationsortakingremedialmeasures,compensateforthelosses,iftheotherpartysuffersfromotherlosses.

Article113Whereonepartytoacontractfailstoperformthecontractobligationsoritsperformancefailstosatisfythetermsofthecontractandcauseslossestotheotherparty,theamountofcompensationforlossesshallbeequaltothelossescausedbythebreachofcontract,includingtheinterestsreceivableaftertheperformanceofthecontract,providednotexceedingtheprobablelossescausedbythebreachofcontractwhichhasbeenforeseenoroughttobeforeseenwhenthepartyinbreachconcludesthecontract.

ThebusinessoperatorwhocommitsdefaultactivitiesinprovidingtotheconsumeranygoodsorserviceshallbeliableforpayingcompensationfordamagesinaccordancewiththeLawofthePeople sRepublicofChinaontheProtectionofConsumerRightsandInterests.

Article114Thepartiestoacontractmayagreethatonepartyshall,whenviolatingthecontract,paybreachofcontractdamagesofacertainamountinlightofthebreach,ormayagreeuponthecalculatingmethodofcompensationforlossesresultingfromthebreachofcontract.

Iftheagreedbreachofcontractdamagesarelowerthanthelossescaused,anypartymayrequestthepeople scourtoranarbitrationinstitutiontoincreaseit;ifitisexcessivelyhigherthanthelossescaused,anypartymayrequestthepeople scourtoranarbitrationinstitutiontomakeanappropriatereduction.

Ifthepartiestoacontractagreeuponbreachofcontractdamagesinrespecttothedelayinperformance,thepartyinbreachshallperformthedebtobligationsafterpayingthebreachofcontractdamages.

Article115Thepartiestoacontractmay,accordingtotheGuarantyLawofthePeople sRepublicofChina,agreethatonepartypaysadeposittotheotherpartyastheguarantyforthecreditor srights.Afterthedebtobligationsareperformedbytheobligor,thedepositshallbereturnedoroffsetagainsttheprice.Ifthepartythatpaysthedepositfailstoperformtheagreeddebtobligations,itshallhavenorighttoreclaimthedeposit.Ifthepartythatreceivesthedepositfailstoperformtheagreeddebtobligations,itshallreturntwicetheamountofthedeposit.

Article116Wherethepartiestoacontractagreeonbothbreachofcontractdamagesandadeposit,whenonepartyviolatesthecontract,theotherpartymaychoosetoapplythebreachofcontractdamagesclauseorthedepositclause.

Article117Incasethatacontractisnotabletobeperformedbecauseofforcemajeure,theliabilitiesshallbeexemptedinpartorwhollyinlightoftheeffectsofforcemajeure,exceptasotherwisestipulatedbylaw.Iftheforcemajeureoccursafteronepartyhasdelayedinperformance,theliabilitymaynotbeexempted.

ForcemajeureasreferredtointhisLawmeanstheobjectivecircumstancesthatareunforeseeable,unavoidableandinsurmountable.

Article118Onepartytoacontractthatisnotabletoperformthecontractbecauseofforcemajeureshallmakeanoticetotheotherpartypromptlysoastoreducetheprobablelossestotheotherpartyandprovideevidencewithinareasonabletimelimit.

Article119Afteronepartyviolatesacontract,theotherpartyshalltakepropermeasurestopreventfromtheenlargementoflosses;iftheotherpartyfailstotakepropermeasuressothatthelossesareenlarged,itmaynotclaimanycompensationastotheenlargedlosses.

Thereasonableexpensespaidbythepartytopreventfromtheenlargementoflossesshallbebornebythepartyinbreach.

Article120Incasethatbothpartiesviolateacontract,theyshallbeartheliabilitiesrespectively.

Article121Onepartythatviolatesthecontractbecauseofathirdpartyshallbeliableforthebreachofcontracttotheotherparty.Thedisputesbetweenthesaidpartyandthethirdpartyshallbesettledaccordingtolawortheiragreement.

Article122Incasethatthebreachofcontractbyonepartyinfringesupontheotherparty spersonalorpropertyrights,theaggrievedpartyshallbeentitledtochoosetoclaimtheassumptionbytheviolatingandinfringingpartyofliabilitiesforbreachofcontractaccordingtothisLaw,ortoclaimtheassumptionbytheviolatingandinfringingpartyofliabilitiesforinfringementaccordingtootherlaws.

CHAPTER8MISCELLANEOUSPROVISIONS

Article123Ifthereareprovisionsasotherwisestipulatedinrespecttocontractsinotherlaws,suchprovisionsshallbefollowed.

Article124AnycontractwhichisnotaddressedexplicitlyintheSpecificProvisionsofthisLaworinotherlawsshallapplytheprovisionsoftheGeneralProvisionsofthisLaw.ThemostsimilarprovisionsintheSpecificProvisionsofthisLaworinotherlawsmaybeappliedmutatismutandis.

Article125Withregardtodisputesbetweenthepartiestoacontractarisingfromtheunderstandingofanyclauseofthecontract,thetrueintentionofsuchclauseshallbedeterminedaccordingtothetermsandexpressionsusedinthecontract,thecontentsoftherelevantclausesofthecontract,thepurposeforconcludingthecontract,thetransactionpracticesandtheprincipleofgoodfaith.

Wheretwoormorelanguagesareadoptedinthetextofacontractanditisagreedthatbothtextsareequallyauthentic,itshallbepresumedthatthetermsandexpressionsinvariousversionshavethesamemeaning.Incasethatthetermsandexpressionsindifferentversionsareinconsistent,theyshallbeinterpretedaccordingtothepurposeofthecontract.

Article126Thepartiestoacontractinvolvingforeigninterestsmaychoosethelawapplicabletothesettlementoftheircontractdisputes,exceptasotherwisestipulatedbylaw.Ifthepartiestoacontractinvolvingforeigninterestshavenotmadeachoice,thelawofthecountrytowhichthecontractismostcloselyconnectedshallbeapplied.

ThecontractsforChinese-foreignequityjointventures,forChinese-foreigncontractualjointventuresandforChinese-foreigncooperativeexplorationanddevelopmentofnaturalresourcestobeperformedwithintheterritoryofthePeople sRepublicofChinashallapplythelawsofthePeople sRepublicofChina.

Article127Thedepartmentsofadministrationforindustryandcommerceandothercompetentdepartmentsshall,withinthescopeoftheirrespectivecompetenceandfunctions,beresponsibleforsupervisionoveranddealingwithillegalactsintakingadvantageofcontractstoendangerandharmtheStateinterestsandpublicinterests.Incasethatacrimeisconstituted,criminalresponsibilityshallbeinvestigated.

Article128Thepartiesmaysettletheirdisputesrelevanttothecontractthroughconciliationormediation.

Thepartiesmay,ifunwillingtosettletheirdisputesthroughconciliationormediationorfailingintheconciliationormediation,applytoanarbitrationinstitutionforarbitrationaccordingtotheirarbitrationagreement.Thepartiestoacontractinvolvingforeigninterestsmay,accordingtotheirarbitrationagreement,applyforarbitrationtoaChinesearbitrationinstitutionorotherarbitrationinstitutions.Ifthereisnoarbitrationagreementbetweenthepartiesorthearbitrationagreementisnullandvoid,theymaybringalawsuitbeforethepeople scourt.Thepartiesshallperformthecourtjudgments,arbitrationawardsormediationdocumentswithlegaleffectiveness.Incaseanyrefusalinrespecttotheperformance,theotherpartymayrequestthepeople scourtforexecution.

Article129Thetimelimitforactionbeforethepeople scourtorforarbitrationbeforeanarbitrationinstitutionregardingdisputesrelatingtocontractsforinternationalsalesofgoodsandcontractsfortechnologyimportandexportshallbefouryears,calculatingfromthedateonwhichthepartyknowsoroughttoknowtheinfringementonitsrights.Thetimelimitsforactionbeforethepeople scourtorforarbitrationbeforeanarbitrationinstitutionregardingothercontractsdisputesshallbeinaccordancewiththeprovisionsoftherelevantlaws.

Article130Asalescontractisacontractwherebythesellertransferstheownershipofanobjecttothebuyerandthebuyerpaysthepriceforit.

Article131OtherthanthoseasstipulatedinArticle12ofthisLaw,asalescontractmayalsocontainsuchclausesaspackagemanner,inspectionstandardsandmethod,methodofsettlementandclearance,languageadoptedinthecontractanditsauthenticity.

Article132Anobjecttobesoldshallbeownedbythesellerorofthatthesellerisentitledtodispose.

Wherethetransferofanobjectisprohibitedorrestrictedbythelawsandadministrativeregulations,theprovisionsthereofshallbefollowed.

Article133Theownershipofanobjectshallbetransferreduponthedeliveryoftheobject,exceptasotherwisestipulatedbylaworagreeduponbytheparties.

Article134Thepartiestoasalescontractmayagreethattheown-ershipshallbelongtothesellerifthebuyerfailstopaythepriceorperformotherobligations.

Article135Thesellershallperformtheobligationtodelivertothebuyertheobjectorthedocumentstotakedeliveryoftheobject,andtotransfertheownershipoftheobject.

Article136Thesellershall,accordingtothetermsofthecontractortransactionpractices,delivertothebuyerrelevantdocumentsandmaterialsotherthanthedocumentstotakedeliveryoftheobject.

Article137Whenanobjectsuchascomputersoftwarewithintellectualpropertyrightsissold,theintellectualpropertyrightsofsuchobjectshallnotbelongtothebuyerexceptasotherwisestipulatedbylaworagreeduponbytheparties.

Article138Thesellershalldelivertheobjectaccordingtotheagreedtimelimit.Ifatimelimitofdeliveryisagreedupon,thesellermaydeliveratanytimewithinthesaidtimelimit.

Article139Wherethereisnoagreementinthecontractbetweenthepartiesastothetimelimittodelivertheobjectorsuchagreementisunclear,theprovisionsofArticle61andSub-Paragraph(4),Article62ofthisLawshallbeapplied.

Article140Ifanobjecthasbeenpossessedbythebuyerbeforethecontractisconcluded,thedeliverytimeshallbethetimewhenthecontractgoesintoeffect.

Article141Thesellershalldelivertheobjectaccordingtotheagreedplace.Wherethereisnoagreementinthecontractbetweenthepartiesastotheplacetodelivertheobjectorsuchagreementisunclear,norcanitbedeterminedaccordingtotheprovisionsofArticle61ofthisLaw,thefollowingprovisionsshallbeapplied:

(1)Incasetheobjectneedscarriage,thesellershalldelivertheobjecttothefirstcarriersoastohanditovertothebuyer;or

(2)Incasetheobjectdoesnotneedcarriage,andthesellerandbuyerknowtheplaceoftheobjectwhenconcludingthecontract,thesellershalldelivertheobjectatsuchplace;iftheplaceisunknown,theobjectshallbedeliveredatthebusinessplaceofthesellerwhenconcludingthecontract.

Article142Theriskofdamagetoormissingofanobjectshallbebornebythesellerbeforethedeliveryoftheobjectandbythebuyerafterthedelivery,exceptasotherwisestipulatedbylaworagreeduponbytheparties.

Article143Wheretheobjectcannotbedeliveredaccordingtotheagreedtimelimitduetocausesofthebuyer,thebuyershallbeartheriskofdamagetoormissingoftheobjectasoftheagreeddateofdelivery.

Article144Wherethesellersellsanobjectdeliveredtoacarrierforcarriageandenrouteofcarriage,theriskofdamagetoormissingoftheobjectshallbebornebythebuyerasofthetimeofestablishmentofthecontract,exceptasotherwiseagreeduponbytheparties.

Article145Wherethereisnoagreementinthecontractbetweenthepartiesastotheplaceofdeliveryorsuchagreementisunclear,andtheobjectneedscarriageaccordingtotheprovisionsofSub-paragraph(1),Paragraph2,Article141ofthisLaw,theriskofdamagetoormissingoftheobjectshallbebornebythebuyerafterthesellerhasdeliveredtheobjecttothefirstcarrier.

Article146WherethesellerhasputanobjectattheplaceofdeliveryaccordingtotheprovisionsofSub-paragraph(2),Paragraph2,Article141ofthisLaw,whilethebuyerfailstotakedeliveryoftheobjectbyviolatingthetermsofthecontract,theriskofdamagetoormissingoftheobjectshallbebornebythebuyerasofthedateofbreach.

Article147Thebuyer sfailureindeliveringthedocumentsandmaterialsrelatingtotheobjectaccordingtothetermsofthecontractmaynotaffecttherisktransferofthedamagetoormissingoftheobject.

Article148Whereitisnotabletorealizethepurposeofacontractbecausethequalityoftheobjecthasnotsatisfiedthequalityrequirements,thebuyermayrefusetoaccepttheobjectormayrescindthecontract.Wherethebuyerrefusestoaccepttheobjectorrescindsthecontract,thesellershallbeartheriskofdamagetoormissingoftheobject.

Article149Incasethatthebuyerbearstheriskofdamagetoormissingoftheobject,thebuyer srightmaynotbeaffectedtoclaimtheassumptionbytheselleroftheliabilitiesforbreachofcontractbecauseoftheseller sperformancefailingtoconformwiththetermsofthecontract.

Article150Thesellershall,inrespectoftheobjectdelivered,assumetheobligationtoguaranteethatnothirdpartymayclaimanyrighttothebuyer,exceptasotherwisestipulatedbylaw.

Article151Wherethebuyerknowsoroughttoknow,whenconcludingthecontract,thatathirdpartyhasrightsontheobjecttobesold,thesellermayassumenoobligationasstipulatedinArticle150ofthisLaw.

Article152Wherethebuyerhasconclusiveevidencetodemonstratethatathirdpartymayprobablyclaimrightsontheobject,thebuyermaysuspendtopaythecorrespondingprice,unlessthesellerprovidesaproperguaranty.

Article153Thesellershalldelivertheobjectaccordingtotheagreedqualityrequirements.Incasethatthesellerprovideswiththequalityspecificationsconcerningtheobject,thedeliveredobjectshallsatisfythequalityrequirementsinsuchspecifications.

Article154Wherethereisnoagreementbetweenthepartiesinthecontractontheobjectqualityrequirementsorsuchagreementisunclear,norcanitbedeterminedaccordingtotheprovisionsofArticle61ofthisLaw,theprovisionsofSub-paragraph(1),Article62ofthisLawshallbeapplied.

Article155Wheretheobjectdeliveredbythesellerfailstoconformwiththequalityrequirements,thebuyermayclaimtheassumptionbytheselleroftheliabilitiesforbreachofcontractaccordingtotheprovisionsofArticle111ofthisLaw.

Article156Thesellershalldelivertheobjectintheagreedpackagemanner.Wherethereisnoagreementonpackagemannerinthecontractortheagreementisunclear,norcanitbedeterminedaccordingtotheprovisionsofArticle61ofthisLaw,theobjectshallbepackedinageneralmanner,andifnogeneralmanner,apackagemannerenoughtoprotecttheobjectshallbeadopted.

Article157Thebuyershallinspecttheobjectwithintheagreedinspectionperiodafterreceivingtheobject.Incasethereisnosuchperiodagreeduponinthecontract,theinspectionshallbemadeintime.

Article158Wherethepartieshaveagreedupontheinspectionperiodinthecontract,thebuyershall,withintheperiodforinspection,makeanoticetothesellerthattheobjectquantityorqualityfailstoconformwiththetermsofthecontract.Ifthebuyerisindolentinmakingsuchanotice,itshallbedeemedthattheobjectquantityorqualityhasconformedwiththetermsofthecontract.

Wherethereisnoagreementbetweenthepartiesinthecontractontheinspectionperiod,thebuyershallmakeanoticetothesellerwithinareasonabletimeperiodafteritfindsoroughttofindthattheobjectquantityorqualityfailstoconformwiththetermsofthecontract.Ifthebuyerfailsinmakinganoticewithinsuchreasonabletimeperiodorwithin2yearsasofthedateofreceivingtheobject,itshallbedeemedthattheobjectquantityorqualityhasconformedwiththetermsofthecontract.However,ifthereisaqualityguaranteeperiodontheobject,thesaidqualityguaranteeperiodshallbeappliedinsteadoftheabovesaid2years.

Wherethesellerknowsoroughttoknowtheobjecttobesupplieddoesnotconformwiththetermsofthecontract,thebuyermaynotberestrictedbythetimelimitasstipulatedintheprecedingparagraph.

Article159Thebuyershallpaythepriceaccordingtotheagreedamountinthecontract.Ifthereisnoagreementinthecontractonthepriceorsuchagreementisunclear,theprovisionsofArticle61andSubparagraph(2),Article62ofthisLawshallbeapplied.

Article160Thebuyershallpaythepriceattheagreedplace.Ifthereisnoagreementinthecontractontheplaceofpaymentortheagreementisunclear,norcanitbedeterminedaccordingtotheprovisionsofArticle61ofthisLaw,thebuyershallpayattheseller sbusinessplace.However,ifitisagreedthatthedeliveryoftheobjectorthedocumentstotakedeliveryoftheobjectissetasaprerequisitetothepaymentoftheprice,thepaymentshallbemadeattheplacewheretheobjectorthedocumentstotakedeliveryoftheobjectaredelivered.

Article161Thebuyershallpaythepriceattheagreedtime.Ifthereisnoagreementinthecontractonthetimeofpaymentorsuchagreementisunclear,norcanitbedeterminedaccordingtotheprovisionsofArticle61ofthisLaw,thebuyershallpayatthesametimewhenreceivingtheobjectorthedocumentstotakedeliveryoftheobject.

Article162Wherethesellerdeliversexcessiveobjects,thebuyermayacceptorrefusetoaccepttheexcesspart.Incasethebuyeracceptstheexcesspart,thebuyershallpayforitatthepriceintheoriginalcontract;ifherefusestoaccepttheexcesspart,thebuyershallmakeanoticetothesellerpromptly.

Article163Anyfruitsgeneratedbytheobjectbeforedeliveryshallbeownedbytheseller,whilethosegeneratedafterdeliveryshallbeownedbythebuyer.

Article164Ifacontractisrescindedresultingfromthattheprincipalpartoftheobjectfailstosatisfythetermsofthecontract,theeffectivenessofrescindingthecontractshallextendtothecollateralpart.Wherethecollateralpartoftheobjectfailstosatisfythetermsofthecontractsothatithasbeenrescinded,theeffectivenessofitsrescindingmaynotextendtotheprincipalpart.

Article165Wheretheobjectcontainsseveralitemsandoneofthemfailstosatisfythetermsofthecontract,thebuyermayrescindthecontractwithrespecttosuchitem.However,ifitsseparationfromotheritemswilldamagetheobjectvalueobviously,thepartiesmayrescindthecontractwithrespecttosuchseveralitems.

Article166Wherethesellerdeliverstheobjectinbatches,ifthesellerfailstodeliveronebatchoftheobjectorthedeliveryfailstosatisfythetermsofthecontractsothatthesaidbatchcannotrealizethecontractpurpose,thebuyermayrescindthecontractwithrespecttosuchbatchofobject.

Ifthesellerfailstodeliveronebatchofobjectorthedeliveryfailstosatisfythetermsofthecontractsothatthedeliveryofthesubsequentbatchesofobjectscannotrealizethecontractpurpose,thebuyermayrescindthecontractwithrespecttosuchbatchandthesubsequentbatchesofobjects.

Ifthebuyerhasrescindedthecontractwithrespecttoonebatchofobjectandsuchbatchofobjectisindispensabletootherbatchesoftheobjects,thebuyermayrescindthecontractwithrespecttothevariousbatchesofobjectsdeliveredandundelivered.

Article167Wherethebuyermakingpaymentbyinstallmentsfailstopaythepricedueandtheamountunpaidaccountsforonefifthofthewholeprice,thesellermayrequestthebuyertopaythewholepriceormayrescindthecontract.

Wherethesellerrescindsthecontract,thesellermayrequestthebuyertopayfortheuseofsuchobject.

Article168Thepartiestoasalestransactionbaseduponthesampleshallsealupthesample,andmaymakespecificationsonthesamplequality.Theobjectdeliveredbythesellershallhavethesamequalityasthesampleandthespecifications.

Article169Wherethebuyertoasalestransactionbaseduponthesampledoesnotknowthatthesamplehasahiddendefect,eveniftheobjectdeliveredisthesameasthesample,theobjectdeliveredbythesellershallstillmeetthenormalstandardsofthekind.

Article170Thepartiestoasalestransactionontrialusemayagreeontheperiodoftrialuseoftheobject.Ifthereisnoagreementinthecontractonsuchperiodorsuchagreementisunclear,norcanitbedeterminedaccordingtotheprovisionsofArticle61ofthisLaw,itshallbedeterminedbytheseller.

Article171Thebuyertoasalestransactionontrialusemay,duringtheperiodoftrialuse,buytheobjectorrefusetobuyit.Upontheexpiryoftheperiodoftrialuse,ifthebuyerfailstoexpresswhetherornottobuytheobject,thepurchaseshallbedeemed.

Article172Therightsandobligationsofthepartiestoasalestransactionintheformofinvitingandmakingtendersandtheprocedurestherefor,shallbeinaccordancewiththeprovisionsofrelevantlawsandadministrativeregulations.

Article173Therightsandobligationsofthepartiestoanauctionandtheprocedurestherefor,shallbeinaccordancewiththeprovisionsofrelevantlawsandadministrativeregulations.

Article174Wherethereisanyprovisiononothernon-gratuitouscontractsinthelaws,suchprovisionsshallbefollowed;ifnosuchprovisions,therelevantprovisionsonsalescontractsshallbeappliedmutatismutandis.

Article175Wherethepartiesmakeanagreementonabartertrade,andtheownershipoftheobjectistobetransferred,therelevantprovisionsonsalescontractsshallbeappliedmutatismutandis.

CHAPTER10CONTRACTSFORSUPPLYANDUSEOFELECTRICITY,WATER,GASOR

Article176Acontractforsupplyanduseofelectricityreferstoacontractwherebythesupplierofelectricitysupplieselectricitytotheuserofelectricity,andtheuserpaystheelectricfee.

Article177Thecontentsofacontractforsupplyanduseofelectricityshallcontainsuchclausesasthemanner,quality,andtimeofsupplyingelectricity,quantityofuse,addressandcharacterofuse,methodofmeasurement,methodofsettlementandclearanceofelectricitypriceandfees,andtheresponsibilityformaintainingthefacilitiesforsupplyanduseofelectricity.

Article178Theplacewhereacontractforsupplyanduseofelectricityistobeperformedshallbeagreeduponbytheparties.Wherethereisnosuchagreementbetweenthepartiesinthecontractorsuchagreementisunclear,theplacewherethepropertyrightsoftheelectricitysupplyfacilitiesaredemarcatedshallbetheplaceofperformance.

Article179ThesupplierofelectricityshallsafelysupplyelectricityinaccordancewiththestandardsforthesupplyofelectricitystipulatedbytheStateandthetermsofthecontract.WherethesupplierofelectricityfailstosafelysupplyelectricityinaccordancewiththestandardsforthesupplyofelectricityasstipulatedbytheStateandthetermsofthecontract,andcauseslossestotheuserofelectricity,itshallbeliablefordamages.

Article180Whenthesupplierofelectricityneedstosuspendthesupplyofelectricityduetosuchreasonsasplannedoradhocinspectionandrepairofthefacilitiesforsupplyofelectricity,restrictiononelectricityaccordingtolaworuseofelectricityinviolatingthelawonthepartoftheuser,itshallnotifytheuserofelectricityinadvanceinaccordancewiththerelevantprovisionsoftheState.Whereitsuspendsthesupplywithoutnotifyingtheuserinadvanceandcauseslossestotheuser,thesupplierofelectricityshallbeliablefordamages.

Article181Wherethesupplierofelectricitysuspendsthesupplyofelectricityduetosuchreasonsasnaturaldisasters,itshallmakepromptrepairsinaccordancewiththerelevantprovisionsoftheState.Whereitfailstomakepromptrepairsandcauseslossestotheuser,itshallbeliablefordamages.

Article182TheuserofelectricityshallpaytheelectricityfeesasscheduledinaccordancewiththerelevantprovisionsoftheStateandthetermsofthecontract.Iftheuserofelectricitydoesnotpaytheelectricityfeeswithinthetimelimit,itshallpaybreachofcontractdamagesinaccordancewiththetermsofthecontract.Iftheuserstilldoesnotpaytheelectricityfeesandthebreachofcontractdamages,thesuppliermaysuspendthesupplyofelectricityinaccordancewiththeproceduresstipulatedbytheState.

Article183TheuserofelectricityshallusetheelectricityinaccordancewiththerelevantprovisionsoftheStateandthetermsofthecontract.WheretheuserofelectricityfailstousetheelectricitysafelyaccordingtotherelevantprovisionsoftheStateandthetermsofthecontractandcauseslossestothesupplierofelectricity,itshallbeliablefordamages.

Article184Contractsforsupplyanduseofwater,gasorheatingshallapplymutatismutandistheprovisionsoncontractsforsupplyanduseofelectricity.

CHAPTER11CONTRACTSFORDONATION

Article185Adonationcontractreferstoacontractwherebythedonatorpresentsgratisitspropertytothedonee,andthedoneeexpressestheacceptionofthedonation.

Article186Thedonatormayrescindthedonationbeforetransferringoftherightsofthedonatedproperty.

Wherethedonationcontractisofsuchnatureasforpublicwelfareormoralobligationinprovidingdisasterorpovertyrelief,orthedonationcontractisnotarized,theprovisionsoftheprecedingparagraphshallnotbeapplied.

Article187Ifthedonatedpropertyneedstogothroughsuchformalitiesasregistrationaccordingtolaw,therelevantformalitiesshallbecompleted.

Article188Incaseofadonationcontractbeingofsuchnatureasforpublicwelfareormoralobligationinprovidingdisasterorpovertyrelief,orthatthedonationcontractisnotarized,ifthedonatordoesnotdeliverthedonatedproperty,thedoneemayrequestforthedelivery.

Article189Where,duetothedeliberateintentionorgrossfaultofthedonator,destructionorlossesarecausedtothedonatedproperty,thedonatorshallbeliablefordamages.

Article190Thedonationmaybesubjecttocollateralobligations.

Wherethedonationissubjecttocollateralobligations,thedoneeshallperformtheobligationsinaccordancewiththetermsofthecontract.

Article191Wherethedonatedpropertyhasdefects,thedonatorshallnotbearanyliability.Incaseofadonationsubjecttocollateralobligations,ifthedonatedpropertyhasdefects,thedonatorshallbearthesameliabilityasasellerwithinthelimitofthecollateralobligations.

Wherethedonatordoesnotinformofthedefectsintentionallyorinsuresthatthereisnodefect,thuscausinglossestothedonee,thedonatorshallbeliablefordamages.

Article192Wherethedoneeisunderanyofthefollowingcircumstances,thedonatormayrescindthedonation:

(1)seriouslyinfringinguponthedonatororhis/hercloserelatives;

(2)notperformingtheobligationinrespectofsupportingthedonator;

(3)notperformingtheobligationagreeduponinthedonationcontract.

Therightofthedonatortorescissionshallbeexercisedwithinoneyearasofthedatewhenheknowsoroughttoknowtherescissionreasons.

Article193Incaseofthedonee sillegalactsresultinginthedeathofthedonatororthelossofthedonator scivilofcapacityconduct,theheirorstatutoryagentofthedonatormayrescindthedonation.

Therighttorescissionoftheheirorstatutoryagentofthedonatorshallbeexercisedwithinsixmonthsasofthedatewhenheknowsoroughttoknowtherescissionreasons.

Article194Whereapersonhavingtherighttorescissionrescindsthedonation,thepersonmayrequestthedoneetoreturnthedonatedproperty.

Article195Whereeconomicconditionsofthedonatorisstrikinglydeteriorating,whichseriouslyaffectshis/herproductionandbusinessoperationsorthefamilylife,thedonatormaynolongerperformthedonationobligation.

Article196Aloancontractreferstoacontractwherebytheborrowerraisesaloanfromthelender,andrepaystheloanwithinterestthereofwhenitbecomesdue.

Article197Loancontractsshallbeinwrittenform,exceptasotherwiseagreeduponbynaturalpersonsinrespectofloansbetweenthem.

Thecontentsofaloancontractshallcontainsuchclausesasthecategoryofloans,thekindofcurrency,thepurposeofuse,theamount,theinterestrate,thetermandthemethodforreturningtheloan.

Article198Inconcludingaloancontract,thelendermayrequiretheborrowertoprovideaguaranty.TheguarantyshallabidebytheprovisionsoftheGuarantyLawofthePeople sRepublicofChina.

Article199Inconcludingaloancontract,theborrowershallprovidewiththetruthfulinformationaboutthebusinessactivitiesandfinancialconditionsrelatingtotheloanaccordingtotherequirementsofthelender.

Article200Theinterestoftheloanshallnotbedeductedfromtheprincipalinadvance.Wheretheinterestisdeductedinadvancefromtheprincipal,theloanshallberepaidandtheamountoftheinterestcalculatedaccordingtotheactualamountoftheloan.

Article201Wherethelenderfailstoextendtheloaninaccordancewiththeagreeddateandamountandcauseslossestotheborrower,thelendershallcompensateforthelosses.

Wheretheborrowerfailstoaccepttheloaninaccordancewiththeagreeddateandamount,theborrowershallpaytheinterestaccordingtotheagreeddateandamoant.

Article202Thelendermayinspectandsupervisetheuseoftheloaninaccordancewiththetermsofthecontract.Theborrowershallprovideregularlytherelevantfinancialstatementsandothermaterialstothelenderinaccordancewiththetermsofthecontract.

Article203Wheretheborrowerfailstousetheloaninaccordancewiththeagreedusageoftheloan,thelendermayceaseinextendingtheloan,recalltheloanaheadoftimeorrescindthecontract.

Article204LoaninterestratesofthefinancialinstitutionsconductingloanbusinessshallbedeterminedaccordingtotheupperlimitandlowerlimitofloaninterestratesstipulatedbythePeople sBankofChina.

Article205Theborrowershallpaytheinterestinaccordancewiththeagreedtimelimit.Wherethereisnoagreementinthecontractastothetimelimitforpaymentofinterestorsuchagreementisunclear,norcanitbedeterminedaccordingtotheprovisionsofArticle61ofthisLaw,theinterestshallbepaidatthetimewhentheloanisreturnedforloansunderatermoflessthanoneyear;asforloansunderatermofmorethanoneyear,theinterestshallbepaidatthetimewheneveryonefullyearexpires,andiftheremainingtermislessthanoneyear,theinterestthereofshallbepaidatthetimewhentheloanisreturned.

Article206Theborrowershallreturntheloaninaccordancewiththeagreedtimelimitinthecontract.Wherethereisnoagreementinthecontractastotheloantermorsuchagreementisunclear,norcanitbedeterminedaccordingtotheprovisionsofArticle61ofthisLaw,theborrowermayreturntheloanatanytime,andthelendermayurgetheborrowertoreturntheloanwithinareasonabletimelimit.

Article207Wheretheborrowerfailstoreturntheloaninaccordancewiththeagreedtimelimit,theborrowershallpayoverdueinterestaccordingtothetermsofthecontractortherelevantprovisionsoftheState.

Article208Wheretheborrowerreturnstheloanaheadoftime,exceptasotherwiseagreeduponbetweentheparties,theinterestthereofshallbecalculatedaccordingtotheactualtermoftheloan.

Article209Theborrowermayapplytothelenderforanextensionoftheloanreturntermbeforetheloantermexpires.Ifthelenderconsents,thetermmaybeextended.

Article210Aloancontractbetweennaturalpersonsshallcomeintoforceasofthetimewhenthelenderextendstheloan.

Article211Ifthereisnoagreementinaloancontractbetweennaturalpersonsastothepaymentofinterestorsuchagreementisunclear,itshallbedeemedasnon-paymentofinterest.

Ifthepaymentofinterestisagreedinaloancontractbetweennaturalpersons,theloaninterestratesshallnotviolatetheprovisionsoftheStateontherestrictiononloaninterestrates.

Article212Aleasecontractreferstoacontractwherebythelessorshalldelivertheleasedpropertytothelesseeforthelatter suseorobtainingproceedsthroughtheuse,andthelesseepaystherent.

Article213Thecontentsofaleasecontractshallcontainsuchclausesasthename,quantity,purposeforuse,termofthelease,rentaswellastimelimitandmethodforitspayment,maintenanceoftheleasedproperty.

Article214Thetermofaleasemaynotexceed20years;incaseofatermexceeding20years,theexceedingpartshallbeinvalid.

Attheexpiryofthetermofthelease,thepartiesmayextendtheleasecontract;however,theextendedtermoftheleaseagreeduponshallnotexceed20yearsasofthedateofextendingthecontract.

Article215Wheretheleasetermisabove6months,theleasecontractshallbeinwrittenform.Ifthepartiesdonotconcludeitinwrittenform,itshallbedeemedanunfixedlease.

Article216Thelessorshalldelivertheleasedpropertytothelesseeandkeepitbeingfitfortheuseaccordingtothetermsofthecontractduringthetermofthelease.

Article217Thelesseeshallusetheleasedpropertyinaccordancewiththemethodsagreeduponinthecontract.Wherethereisnoagreementinthecontractonthemethodsforusingtheleasedpropertyorsuchagreementisunclear,norcanitbedeterminedaccordingtotheprovisionsofArticle61ofthisLaw,theleasedpropertyshallbeusedinamannerinlightofitsnature.

Article218Wherethelesseeusestheleasedpropertyinaccordancewiththemethodsagreeduponinthecontractorthenatureoftheleasedpropertyandcauseslossestotheleasedproperty,thelesseeshallnotbeartheliabilityfordamages.

Article219Wherethelesseeusestheleasedpropertynotinaccordancewiththemethodsagreeduponinthecontractorthenatureoftheleasedpropertyandcauseslossestotheleasedproperty,thelessormayrescindthecontractandclaimcompensationforlosses.

Article220Thelessorshallperformtheobligationofmaintenanceoftheleasedproperty,exceptasotherwiseagreeduponbytheparties.

Article221Thelesseemayrequestthelessortomaintainandrepairtheleasedpropertywithinareasonabletimelimitwhentheleasedpropertyneedsmaintenanceandrepair.Wherethelessorfailstoperformtheobligationofmaintainingandrepairingtheleasedproperty,thelesseemaymaintainitbyitself,andtheexpensesforthemaintenanceshallbebornebythelessor.Wherethemaintenanceaffectstheuseoftheleasedproperty,therentshallbereducedortheleasetermshallbeextendedcorrespondingly.

Article222Thelesseeshallkeeptheleasedpropertyinproperstorage.Incasethatimproperstoragecausesdestructionof,damagetoorlostoftheleasedproperty,thelesseeshallbeartheliabilityfordamages.

Article223Withtheconsentofthelessor,thelesseemayimproveoraddotheritemstotheleasedproperty.

Wherethelesseeimprovesoraddsotheritemstotheleasedpropertywithouttheconsentofthelessor,thelessormayrequestthelesseetorestoreittotheoriginalconditionsorcompensateforthelosses.

Article224Withtheconsentofthelessor,thelesseemaysublettheleasedpropertytoathirdparty.Incaseofsublettingbythelessee,theleasecontractbetweenthelesseeandlessorshallcontinuetobeeffective,andthelesseeshallcompensateforthelossesifthethirdpartycauseslossestotheleasedproperty.

Wherethelesseesubletstheleasedpropertywithouttheconsentofthelessor,thelessormayrescindthecontract.

Article225Theproceedsgainedduetopossessionoruseoftheleasedpropertyshallbelongtothelessee,exceptasotherwiseagreeduponbytheparties.

Article226Thelesseeshallpaytherentaccordingtothetimelimitagreeduponinthecontract.Wherethereisnoagreementinthecontractastothetimelimitforpaymentorsuchagreementisunclear,norcanitbedeterminedaccordingtotheprovisionsofArticle61ofthisLaw,therentshallbepaidattheexpiryoftheleasetermiftheleasetermislessthanoneyear,orshallbepaidattheexpiryofeveryonefullyeariftheleasetermismorethanoneyear,therestofrentshallbepaidattheexpiryoftheleasetermiftheremainingleasetermislessthanoneyear.

Article227Wherethelesseefailstopayordelaysthepaymentoftherentwithoutjustifiedreasons,thelessormayrequireittopaytherentwithinareasonabletimelimit.Ifthelesseefailstopaytherentaccordingtothetimelimit,thelessormayrescindthecontract.

Article228Whereathirdpartyclaimsrightsandmakesitimpossibleforthelesseetouseorobtainproceedsfromtheleasedproperty,thelesseemayrequestareductionofrentornottopaytherent.

Whererightsareclaimedbyathirdparty,thelesseeshallnotifythelessorpromptly.

Article229Incaseofachangewithregardtotheownershipoftheleasedproperty,theeffectivenessofthecontractshallnotbeaffected.

Article230Ifthelessorsellsoutaleasedhouse,itshall,withinareasonabletimelimitbeforethesale,notifythelesseeandthelesseeshallhavetherighttoprioritytobuytheleasedhouseonequalconditions.

Article231If,duetocauseswhicharenotattributabletothelessee,partoralloftheleasedpropertyisdamaged,destroyedorlost,thelesseemayrequestforareductionoftherentornottopaytherent.Ifthedamagetoordestructionorlossofpartoralloftheleasedpropertymakesitimpossibletorealizethepurposeofthecontract,thelesseemayrescindthecontract.

Article232Wherethereisnoagreementbetweenthepartiesinthecontractastothetermoftheleaseorsuchagreementisunclear,norcanitbedeterminedaccordingtotheprovisionsofArticle61ofthisLaw,suchleaseshallbeconsideredtobeanunfixedlease.Thepartiesmayrescindthecontractatanytime,butthelessorshall,attherescissionofthecontract,notifythelesseebeforeareasonabletimelimit.

Article233Wheretheleasedpropertyendangersthesafetyorhealthofthelessee,evenifthelesseeknowstheleasedpropertydoesnotmeetthequalityrequirementswhenconcludingthecontract,thelesseemayrescindthecontractatanytime.

Article234Wherethelesseeisdeceasedduringthetermofahouselease,thepersonswholivetogetherwiththedeceasedmayleasethehouseinaccordancewiththeoriginalleasecontract.

Article235Thelesseeshallreturntheleasedpropertyattheexpiryoftheleaseterm.Thepropertyreturnedshallbeinconformitywiththeconditionsafteruseaccordingtothetermsofthecontractorthenatureoftheleasedproperty.

Article236Wherethelesseecontinuestousetheleasedpropertyaftertheexpiryoftheleaseterm,andthelessordoesnotraiseobjection,theoriginalleasecontractshallcontinuetobeeffective,buttheleasetermisnotfixed.

CHAPTER14CONTRACTSFORFINANCIALLEASE

Article237Afinancialleasecontractreferstoacontractwherebythelessorbuystheleasedpropertyfromthesellerbasedonthelessee schoiceofthesellerandtheleasedproperty,andsuppliesittothelesseeforthelatter suse,andthelesseepaystherent.

Article238Thecontentsofafinancialleasecontractshallcontainsuchclausesasthetitle,quantity,specifications,technicalperformanceandinspectionmethodsoftheleasedproperty,thetermofthelease,therentcompositionandthetimelimitandkindsofcurrenciesforpaymentoftherent,andtheattributionoftheleasedpropertyattheexpiryoftheleaseterm.

Afinancialleasecontractshallbeinwrittenform.

Article239Withregardtothesalescontractconcludedbythelessorbasedonthelessees choiceofthesellerandtheleasedproperty,thesellershalldelivertheobjecttothelesseeaccordingtothetermsofthecontract,andthelesseeshallenjoytherightsofabuyerrelatingtothereceivedobject.

Article240Thelessor,sellerandlesseemayagreethat,wherethesellorfailstoperformthesalescontract,thelesseeshallexercisetherighttoclaims.Wherethelesseeexercisestheright,thelessorshallprovideassistance.

Article241Thesalescontractconcludedbythelessorbasedonthelessee schoiceofthesellerandtheleasedproperty,shallnotbemodifiedinrespectofthecontentsofthecontractrelatingtothelesseewithouttheconsentofthelessee.

Article242Thelessorshallbeentitledtotheownershipoftheleasedproperty.Incaseofbankruptcyofthelessee,theleasedpropertydoesnotbelongtothebankruptproperty.

Article243Therentunderafinancialleasecontractshallbedeterminedaccordingtothemajorpartorwholeofthecostforpurchasingtheleasedpropertyandreasonableprofitsofthelessor,exceptasotherwiseagreeduponbytheparties.

Article244Wheretheleasedpropertydoesnotconformtothetermsofthecontractorthepurposeofitsuse,thelessorshallnotbearanyliability,exceptthatthelesseedecidesonthechoiceoftheleasedpropertydependingontheskillsofthelessororthelessorinterfereswiththechoiceoftheleasedproperty.

Article245Thelessorshallinsurethelessee spossessionanduseoftheleasedproperty.

Article246Wheretheleasedpropertycausespersonalinjuryorpropertydamagetoathirdpartyduringtheperiodwhereinthelesseepossessestheleasedproperty,thelessordoesnotbearliability.

Article247Thelesseeshallkeeptheleasedpropertyinaproperstorageanduseitproperly.

Thelesseeshallperformtheobligationformaintenanceoftheleasedpropertyduringtheperiodwhereinthelesseepossessestheleasedproperty.

Article248Thelesseeshallpaytherentaccordingtothetermsofthecontract.Ifthelesseestilldoesnotpaytherentwithinareasonabletimelimitafterbeingurged,thelessormayrequestittopayalltherent,orrescindthecontractandtakebacktheleasedproperty.

Article249Wherethepartiesagreeinthecontractthattheleasedpropertyshallbelongtothelesseeattheexpiryoftheleaseterm,thelesseehaspaidthemajorityoftherentbutisunabletopaytheremainingrent,andthelessorrescindsthecontractforthisreasonandtakesbacktheleasedproperty,thelesseemayrequestthelessortoreturnacertainpartifthevalueoftheleasedpropertytakenbackexceedstherentandotherexpenseswhichthelesseeowestothelessor.

Article250Thelessorandlesseemayagreeupontheattributionoftheleasedpropertyattheexpiryoftheleaseterm.Wherethereisnoagreementinthecontractastotheattributionoftheleasedpropertyorsuchagreementisunclear,norcanitbedeterminedaccordingtotheprovisionsofArticle61ofthisLaw,theownershipoftheleasedpropertyshallbelongtothelessor.

Article251Aworkcontractreferstoacontractwherebythecontractorshall,inlightoftherequirementsoftheorderingparty,completetheworkanddelivertheresultstherefrom,andtheorderingpartypaystheremunerationtherefor.

Workincludesprocessing,ordering,repairing,duplicating,testing,inspecting,etc..

Article252Thecontentsofaworkcontractshallcontainsuchclausesastheobject,quantity,quality,remunerationandmethodofthework,supplyofmaterials,termofperformance,standardsandmethodofinspection.

Article253Thecontractorshalluseitsownequipment,technologyandlabourforcetocompletetheprincipalpartofthework,exceptasotherwiseagreeduponbytheparties.

Wherethecontractorassignsthecontractedworktoathirdpartyforcompletion,thecontractorshallberesponsibletotheorderingpartyinrespectoftheworkresultscompletedbythethirdparty.Wheretheassignmentiswithouttheconsentbytheorderingparty,theorderingpartymayrescindthecontract.

Article254Thecontractormayassignsomeauxiliaryworkcontractedtoathirdpartyforcompletion.Thecontractorshallberesponsibletotheorderingpartyfortheworkresultscompletedbyathirdpartyifthecontractorassignstheauxiliaryworktothethirdparty.

Article255Wherethecontractorprovideswithmaterials,thecontractorshallselectandusethematerialsaccordingtothetermsofthecontractandacceptinspectionbytheorderingparty.

Article256Wheretheorderingpartysuppliesmaterials,theorderingpartyshallsupplythematerialsaccordingtothetermsofthecontract.Thecontractorshallpromptlyinspectthematerialssuppliedbytheorderingpartyand,ifitdiscoversthattheydonotconformtotheagreementinthecontract,itshallpromptlynotifytheorderingpartytoreplacethemorsupplywhatislackingortakeotherremedialmeasures.

Thecontractormaynotunilaterallyreplaceanymaterialssuppliedbytheorderingparty,andmaynotreplacethecomponentswhichdonotneedtoberepaired.

Article257Wherethecontractordiscoversthatthedrawingssuppliedbytheorderingpartyorthetechnicalrequirementsareunreasonable,itshallpromptlynotifytheorderingparty.If,duetotheindolentreplyoftheorderingpartyandotherreasons,lossesarecausedtothecontractor,theorderingpartyshallbeliableformakingcompensation.

Article258Wheretheorderingpartychangestherequirementsofthecontractedworkmidwayandcauseslossestothecontractor,theorderingpartyshallbeliableformakingcompensation.

Article259Ifthecontractedworkneedstheassistanceoftheorderingparty,theorderingpartyshallhavetheobligationtoprovideassistanceWheretheorderingpartydoesnotperformtheassistanceobligationandcausesthecontractedworkunabletobecompleted,thecontractormayurgetheorderingpartytoperformitsobligationwithinareasonabletimelimitandmayprolongthetermofperformance;thecontractormayrescindthecontractiftheorderingpartydoesnotperformsuchobligationwithinthetimelimit.

Article260Thecontractorshall,duringtheperiodofworking,acceptthenecessarysupervisionoverandinspectionoftheworkbytheorderingparty.Theorderingpartymaynotobstructthecontractor snormalworkwiththesupervisionandinspection.

Article261Wherethecontractorcompletesthework,itshalldelivertheresultsoftheworktotheorderingparty,andsubmitnecessarytechnicalmaterialsandtherelevantqualitycertificates.Theorderingpartyshallexamineandaccepttheresultsofthework.

Article262Wheretheresultsoftheworkdeliveredbythecontractordonotconformtothequalityrequirements,theorderingpartymayrequestthecontractortobearsuchliabilitiesforthebreachofcontractasrepairing,reprocessing,reducingremunerationandmakingcompensation.

Article263Theorderingpartyshallpayremunerationaccordingtothetimelimitagreedbythepartiesinthecontract.Wherethereisnoagreementinthecontractastothetimelimitforpaymentofremunerationorsuchagreementisunclear,norcanitbedeterminedaccordingtotheprovisionsofArticle61ofthisLaw,theorderingpartyshallpayitatthesametimewhentheresultsoftheworkaredelivered;whereonlypartoftheworkresultsisdelivered,theorderingpartyshallmakecorrespondingpayment.

Article264Wheretheorderingpartyfailstopaytheremunerationorthepriceforthematerialsandetc.,thecontractorshallhavetherighttolienupontheresultsofthework,exceptasotherwiseagreeduponbytheparties.

Article265Thecontractorshallkeepinaproperstoragethematerialssuppliedbytheorderingpartyandtheworkresultscompleted,andthecontractorshallbeliablefordamagesiftheyaredistroyed,damagedorlostduetoimproperstorage.

Article266Thecontractorshallmaintainconfidentialityaccordingtotherequirementsoftheorderingpartyandmaynot,withoutpermissionthereby,withholdandpreservetheduplicatesortechnicalmaterials.

Article267Co-contractorsshallbearjointandseveralliabilitytotheorderingparty,exceptasotherwiseagreeduponbytheparties.

Article268Theorderingpartymayrescindthecontractatanytime,butitshallbeartheliabilityformakingcompensationforlosses,ifthecontractorsufferslossestherefrom.

CHAPTER16CONTRACTSFORCONSTRUCTIONPROJECTS

Article269Aconstructionprojectcontractreferstoacontractwherebythecontractorundertakestheconstructionoftheprojectandthecontractlettingpartypaysthecostandremuneration.

Constructionprojectcontractsincludeprojectsurveycontracts,projectdesigncontractsandprojectconstructioncontracts.

Article270Constructionprojectcontractsshallbeinwrittenform.

Article271Theinvitationandsubmissionoftenderstoaconstructionprojectshallbeproceededopenly,equallyandfairlyaccordingtotheprovisionsofrelevantlaws.

Article272Thecontractlettingpartymayenterintoaconstructionprojectcontractwithageneralcontractor,orenterintoasurveycontract,designcontractorconstructioncontractwithasurveyor,designerorconstructorrespectively.

Thecontractlettingpartymaynotdividetheconstructionprojectthatshouldbefulfilledbyonecontractorintoseveralpartssoastobefinishedbyseveralcontractors.

Withtheconsentofthecontractlettingparty,thegeneralcontractororthecontractorsforsurvey,designorconstructionmayassignpartofthecontractedworktoathirdparty.Thethirdpartyshallassumejointandseveralliabilitytothecontractlettingpartytogetherwiththegeneralcontractororthecontractorsforsurvey,designorconstructioninrespectofitsworkachievements.Acontractormaynotassignthewholecontractedprojecttoathirdpartyordividethewholecontractedconstructionprojectintoseveralpartsandassignthemrespectivelytothirdpartiesinthenameofsubletting.

Thecontractorsareforbiddentosublettheprojecttoanyunitnothavingcorrespondingqualifications.Thesub-contractorisforbiddentosubletitscontractedworkonceagain.Theconstructionofthemainbodyoftheconstructionprojectmustbecompletedbythegeneralcontractor.

Article273ContractsformajorconstructionprojectsoftheStateshallbeconcludedinaccordancewiththeproceduresprescribedbytheStateandtheinvestmentplans,feasibilitystudyreportsandotherdocumentsapprovedbytheState.

Article274Thecontentsofasurveyordesigncontractshallcontainsuchclausesasthetimelimitforsubmissionoftherelevantbasicmaterialsanddocuments(includingestimatedbudgets),thequalityrequirements,theexpensesandothertermsforcooperation.

Article275Thecontentsofaconstructioncontractshallcontainsuchclausesasthescopeoftheconstruction,timeperiodfortheconstruction,thetimeforbeginningandcompletingtheintermediateconstructionprojects,thequalityoftheconstruction,thecostoftheconstruction,thetimeforsubmissionoftechnicaldata,theresponsibilityforsupplyofmaterialsandequipment,theallocationoffundsandsettlementofaccounts,theinspectionandacceptanceoftheprojectuponcompletion,thescopeforguaranteedmaintenanceandrepairandthequalityguarantyperiod,themutualcooperationofthetwoparties.

Article276Wheresupervisionispractisedinrespectofaconstructionproject,thecontractlettingpartyshallenterintoawrittensupervisioncommissioncontractwithasupervisor.Therights,obligationsandlegalliabilitiesofthecontractlettingpartyandthesupervisorshallbeinaccordancewiththeprovisionsoncommissioncontractsofthisLawandotherrelevantlawsandadministrativeregulations.

Article277Thecontractlettingpartymayinspecttheoperationprogressandqualityatanytimeprovidednothamperingthecontractorfromnormaloperation.

Article278Beforecoveringaprojectwhichneedstobecovered,thecontractorshallnotifythecontractlettingpartytoinspecttheproject.Ifthecontractlettingpartyfailstoinspectitintime,thecontractormayprolongtheconstructionperiod,andshallhavetherighttorequestthecontractlettingpartyforcompensationforlossescausedbyworkstoppagesandidlingofthelabourforce,etc.

Article279Uponcompletionofaconstructionproject,thecontractlettingpartyshallinspectandaccepttheprojectsintimeaccordingtotheconstructiondrawingsandspecificationsaswellastheconstructioninspectionrulesandqualitystandardsissuedbytheState.Ifqualified,thecontractlettingpartyshallpaythecostsandremunerationandaccepttheconstructionprojectaccordingtothetermsofthecontract.Aconstructionprojectmaynotbedeliveredforuseuntilitisqualifiedthroughinspectionandacceptance.Aconstructionprojectmaynotbedeliveredforusewithoutinspectionandacceptanceorprovedtobeunqualifiedthroughinspectionandacceptance.

Article280Wherethequalityofsurveyordesignworkisnotinconformitywiththerequirements,orthesurveyordesigndocumentsarenotsubmittedinduetime,thusdelayingtheconstructionperiodandcausinglossestothecontractlettingparty,thesurveyorordesignershallcontinuetocompletethesurveyordesign,reduceordonotchargethesurveyanddesignfees,andmakecompensationforthelosses.

Article281If,duetothecausesoftheconstructor,theconstructionqualitydoesnotconformtothetermsofthecontract,thecontractlettingpartyshallhavetherighttorequesttheconstructortorepairorreconstructwithinareasonabletimelimitfreeofcharge.Ifsuchrepairorreconstructionresultsinoverduedeliveryoftheproject,theconstructorshallbeliableforthebreachofcontract.

Article282If,duetothecausesofthecontractor,personalinjuryandpropertylosseshaveoccurredwithintheperiodofreasonableuseoftheconstructionproject,thecontractorshallbeliablefordamages.

Article283Ifthecontractlettingpartyhasnotsuppliedtherawmaterials,equipment,sites,fundsortechnicaldataaccordingtotheagreedtimeandrequirementsinthecontract,thecontractormayprolongtheconstructionperiodandshallhavetherighttorequestforcompensationforthelossescausedbyworkstoppagesandidlingofthelabourforce,etc.

Article284If,duetothecausesofthecontractlettingparty,aconstructionprojectpausesorispostponedinthecourse,thecontractlettingpartyshalladoptmeasurestooffsetorreducethelossesandcompensatethecontractorforlossesandactualexpensesincurredasaresultofworkstoppages,idlingofthelabourforce,changesintransportation,transferandmoveofmachineryandequipment,overstockingofmaterialsandcomponents,etc.

Article285If,duetomodificationoftheplan,orinaccuracyofthedatasuppliedorafailureinprovidingthenecessaryconditionsforsurveyanddesignworkaccordingtothetimelimitbythecontractlettingparty,thesurveyanddesignworkhastoberedoneorstopped,orthedesignrevised,thecontractlettingpartyshallpayadditionalexpensesfortheamountofworkactuallyrenderedbythesurveyorordesigner.

Article286Ifthecontractlettingpartyfailstopaythecostsandremunerationinaccordancewiththetermsofthecontract,thecontractormayurgethecontractlettingpartytopaythemoneywithinareasonabletimelimit.Ifthecontractlettingpartyfailstopaywithinthetimelimit,exceptthatitisnotappropriatetoconverttheconstructionprojectintomoneyorauctionitduetoitscharacters,thecontractormayconsultwiththecontractlettingpartytoconverttheprojectintomoney,orapplytothepeople scourttoauctiontheprojectaccordingtolaw.Thecostsandremunerationoftheconstructionprojectshallbecompensatedinprioritybythemoneyderivedfromtheconversionorauction.

Article287MattersnotaddressedinthisChaptershallapplytherelevantprovisionsoncontractsforwork.

CHAPTER17CONTRACTSFORTRANSPORTATION

Article288Atransportationcontractreferstoacontractwherebythecarriercarriespassengersorgoodsfromthestartingplaceofcarriagetotheagreeddestination,andthepassengerortheshipperortheconsigneepaysfortheticket-fareorfreight.

Article289Acarrierengagedinpublictransportationmaynotrefusethenormalandreasonablecarriagerequestofapassengerorshipper.

Article290Acarriershallcarrythepassengerorgoodssafelytotheagreeddestinationwithintheagreedtimeperiodorwithinareasonabletimeperiod.

Article291Acarriershallcarrythepassengerorgoodstotheagreeddestinationviatheagreedorcustomarycarriageroute.

Article292Apassengerorashipperoraconsigneeshallpayfortheticket-fareorforthefreight.Whereacarrierhasnottakentheagreedrouteoracustomarycarriageroute,andconsequentlyincreasedtheticket-fareorthefreight,thepassengerortheshipperortheconsigneemayrefusetopayfortheincreasedpartoftheticket-fareorthefreight.

SECTION2CONTRACTSFORPASSENGERTRANSPORTATION

Article293Apassengertransportationcontractshallbeestablishedatthetimewhenthecarrierdeliversthetickettothepassengerexceptasotherwiseagreeduponinthecontractbythepartiesorthereareothertransactionpractices.

Article294Apassengeronboardshallholdavalidticket.Apassengeronboardwithoutaticketorexceedsthedistancepaidforortakesahigherclassorhigherberththanbookedorholdsaninvalidticket,shallmakeupthepaymentforanappropriateticket.Thecarriermaychargeanadditionalpaymentaccordingtotherules.Wherethepassengerrefusestomakesuchapayment,thecarriermayrefusetoundertakethecarriage.

Article295Apassengerunabletoembarkonthetimestatedontheticketduetohis/herownfault,shallgothroughticketcancellationandrefundformalitiesorticketmodificationformalitieswithintheagreedtimeperiod.Wherethepassengerfailstodosowithinthetimeperiod,thecarriermayrefusetomaketherefundandshallnolongerassumetheobligationofcarriage.

Article296Apassengershallbringwithhim/herluggagewithintheagreedlimitofquantity.Apassengertakesluggageexceedingthelimitshallcheckintheluggage.

Article297Apassengermaynotbringwithhim/herorpackintheluggagesuchdangerousarticlesasareinflammable,explosive,corrosiveorradioactiveaswellasthosethatmightendangerthesafetyoflifeandpropertyonboardthetransportationvehicleorothercontrabandarticles.

Whereapassengerviolatestheprovisionsoftheprecedingparagraph,thecarriermaydischargethecontrabandarticles,destroythemorhandthemovertorelevantdepartments.Wherethepassengerinsistsonbringingorpackingintheluggagethecontrabandarticles,thecarriershallrefusethecarriage.

Article298Acarriershallinformthepassengersintimeoftheimportantcauseswhichhindersthenormalcarriageandthematterswhichshallbenotedforpurposeofsafetycarriage.

Article299Acarriershallcarrypassengersinconformitywiththetimeandthecarriageschedulestatedontheticket.Acarrierdelayingthecarriageshallarrangethepassengerstotakeotherflightsornumbers,orrefundtheticketsasrequestedbythepassengers.

Article300Acarrierunilaterallychangingthecarriagevehicleandconsequentlyloweringthestandardsofserviceshallrefundtheticketorlowerthepriceoftheticketasrequestedbythepassenger.Acarrierunilaterallyraisingthestandardsofservice,shallnotchargeadditionalticket-fare.

Article301Acarriershall,duringtheperiodofcarriage,renderwhateverhelpandassistanceasitcantoapassengerwhoisseriouslyill,orwhoisgivingbirthtoachildorwhoselifeisatrisk.

Article302Acarriershallbeliablefordamagesforthedeathoforpersonalinjurytopassengersduringtheperiodofcarriage,unlessthedeathorpersonalinjuryresultsfromthehealthconditionsofthepassengerhimself/herself,orthecarrierprovesthatthedeathorpersonalinjuryiscausedbythedeliberateintentionorgrossfaultofthepassenger.

Theprecedingparagraphshallbeapplicabletoapassengerwhoisexemptedfrombuyingtheticketaccordingtorelevantrules,orwhoisholdingapreferentialticket,orwhoispermittedbythecarriertobeonboardwithoutaticket.

Article303Whereanarticlethatthepassengertakeswithhim/heronboardisdamagedordestroyedduringtheperiodofcarriage,thecarriershallbeliableforthedamageifithascommittedfault.

Whereacheck-inluggageofapassengerisdamagedordestroyed,therelevantrulesforthecarriageofgoodsshallbeapplied.

SECTION3CONTRACTSFORGOODSTRANSPORTATION

Article304Ashipper,whenhandlingtheformalitiesforgoodscarriage,shallpreciselyindicatetothecarrier,thetitleornameoftheconsigneeorconsigneebyorder,thename,nature,weight,amountandtheplacefortakingdeliveryofthegoods,andotherinformationnecessaryforgoodscarriage.

Whereacarriersuffersfromdamageduetountruedeclarationoromissionofimportantinformationbytheshipper,theshippershallbeliablefordamages.

Article305Wheresuchformalitiesasexaminationandapprovalorinspectionarerequiredforgoodscarriage,theshippershallsubmitthedocumentsoffulfillmentoftherelevantformalitiestothecarrier.

Article306Ashippershallpackthegoodsintheagreedmanner.Wherethereisnoagreementinthecontractastothemannerofpackingorsuchagreementisunclear,theprovisionsofArticle156ofthisLawshallbeapplied.

Whereashipperviolatestheprovisionsoftheprecedingparagraph,thecarriermayrefusetoundertakethecarriage.

Article307Whenshippingsuchdangerousarticlesasareinflammable,explosive,corrosiveorradioactive,ashippershallappropriatelypackthearticlesinconformitywiththerulesoftheStategoverningthecarriageofdangerousarticles,andputonthemarksandlabelsfordangerousarticlesandsubmitthewrittenpapersrelatingtothenatureandmeasuresofprecautiontothecarrier.

Whereashipperviolatestheprovisionsoftheprecedingparagraph,thecarriermayrefusetoundertakethecarriage,ortakecorrespondingmeasurestoavoiddamage.Expensesthuscausedshallbebornebytheshipper.

Article308Priortothedeliveryofgoodstotheconsigneebythecarrier,theshippermayrequestthecarriertosuspendthecarriage,toreturnthegoods,toalterthedestinationortodeliverthegoodstoanotherconsignee.Theshippershallcompensatethecarrierforlossesthuscaused.

Article309Afterthegoodscarriageiscompleted,ifthecarrierhastheknowledgeoftheconsignee,itshallnotifytheconsigneepromptlyandtheconsigneeshallclaimthegoodspromptly.Wheretheconsigneeclaimsthegoodsexceedingthetimelimit,itshallpaytothecarrierforsuchexpensesasstorageofthegoods,etc.

Article310Whenclaimingthegoods,aconsigneeshallinspectthegoodswithintheagreedtimelimitinthecontract.Wherethereisnoagreementinthecontractonthetimelimitorsuchagreementisunclear,norcanitbedeterminedaccordingtoArticle61ofthisLaw,theconsigneeshallinspectthegoodswithinareasonabletimelimit.Thefailureoftheconsigneetomakeanyclaimsontheamount,damageorlossesofthegoodswithintheagreedtimelimitorwithinareasonabletimelimit,shallbedeemedasthepreliminaryevidencethatthecarrierhasdeliveredthegoodsinconformitywiththestatementsindicatedonthecarriagedocuments.

Article311Acarriershallbeliablefordamagesforthedamagetoordestructionofgoodsduringtheperiodofcarriageunlessthecarrierprovesthatthedamagetoordestructionofgoodsiscausedbyforcemajeure,byinherentnaturalcharactesofthegoods,byreasonableloss,orbythefaultonthepartoftheshipperorconsignee.

Article312Theamountofdamagesforthedamagetoordestructionofthegoodsshallbetheamountasagreedoninthecontractbythepartieswherethereissuchanagreement.Wherethereisnosuchanagreementorsuchagreementisunclear,norcanitbedeterminedaccordingtotheprovisionsofArticle61ofthisLaw,themarketpriceattheplacewherethegoodsaredeliveredatthetimeofdeliveryoratthetimewhenthegoodsshouldbedeliveredshallbeapplied.Wherethelawsoradministrativeregulationsstipulateotherwiseonthemethodofcalculationofdamagesandontheceilingoftheamountofdamages,thoseprovisionsshallbefollowed.

Article313Wheremorethanonecarrierstakeaconnectcarriageinthesamemanneroftransportation,thecarrierwhoconcludesthecontractwiththeshippershallbeartheliabilityfortheentiretransport.Wherelossofgoodsoccurredinaspecificsection,thecarrierwhoconcludesthecontractwiththeshipperandthecarrierwhoisresponsibleforthespecificsectionshallbearjointandseveralliability.

Article314Wherethegoodsaredestroyedduetoforcemajeureduringtheperiodofcarriageandthefreighthasnotbeencollected,thecarriermaynotrequestthepaymentofthefreight.Wherethefreighthasbeencollected,theshippermayrequesttherefundofthefreight.

Article315Wheretheshipperortheconsigneefailstopaythefreight,storageexpenseandothercarriageexpenses,thecarrierisentitledtolienontherelevantcarriedgoodsexceptasotherwiseagreeduponinthecontract.

Article316Wheretheconsigneeisunclearortheconsigneerefusestoclaimthegoodswithoutjustifiedreasons,thecarriermayhavethegoodsdepositedaccordingtotheprovisionsofArticle101ofthislaw.

SECTION4CONTRACTSFORMULTI-MODALTRANSPORTATION

Article317Amulti-modaltransportationbusinessoperatorshallberesponsiblefortheperformanceortheorganizingofperformanceofthemulti-modaltransportationcontract,enjoytherightsandassumetheobligationsofthecarrierfortheentiretransport.

Article318Amulti-modaltransportationbusinessoperatormayenterintoagreementswiththecarriersparticipatinginthemulti-modaltransportationindifferentsectionsofthetransportontheirrespectiveresponsibilitiesfordifferentsectionsunderthemulti-modaltransportationcontract.

Article319Amulti-modaltransportationbusinessoperatorshallissuemulti-modaltransportationdocumentsuponreceivingthegoodsfromtheshipper.Themulti-modaltransportationdocumentsmaybenegotiableornon-negotiable,asrequestedbytheshipper.

Article320Whereamulti-modaltransportationbusinessoperatorsufferslossesduetothefaultoftheshipperwhenshippingthegoods,theshippershallbeartheliabilityfordamageseveniftheshipperhastransferredthemulti-modaltransportationdocumentstootherparties.

Article321Wherethedamageto,destructionorlossofgoodsoccurresinaspecificsectionofthemulti-modaltransportation,theliabilityofthemulti-modaltransportationbusinessoperatorfordamagesandthelimitthereofshallbegovernedbytherelevantlawsonthespecificmodeloftransportationusedinthespecificsection.Wherethesectionoftransportationinwhichthedamageordestructionorlossoccurredcannotbeidentified,theliabilityfordamagesshallbegovernedbytheprovisionsofthisChapter.

CHAPTER18CONTRACTSFORTECHNOLOGY

Article322Atechnologycontractreferstoacontractthatthepartiesconcludeforpurposeofestablishingrightsandobligationsofthepartiesregardingtechnologydevelopment,technologytransfer,technicalconsultancyandtechnicalservices.

Article323Theconclusionofatechnologycontractmustfacilitatetheprogressofscienceandtechnology,acceleratethecommercialization,applicationanddisseminationoftheachievementsofscienceandtechnology.

Article324Thecontentsofatechnologycontractshallbeagreeduponbytheparties,andshallcontainthefollowingclausesingeneral:

(1)titleoftheproject;

(2)contents,scopeandrequirementsofthetargetedobject;

(3)plan,schedule,timeperiod,place,areascoveredandmannerofperformance;

(4)maintenanceofconfidentialityoftechnicalinformationandmaterials;

(5)sharingofliabilityforrisks;

(6)ownershipoftechnologicalachievementsandmethodofsharingproceeds;

(7)standardsandmethodofinspectionandacceptance;

(8)price,remunerationorroyaltiesandmethodofpayment;

(9)damagesforbreachofcontractormethodforcalculatingtheamountofcompensationforlosses;

(10)methodsforsettlementofdisputes;and

(11)interpretationoftechnicaltermsandexpressions.

Backgroundmaterialsonthetechnology,reportsonfeasibilitystudiesandtechnologicalappraisals,projectdescriptionsandplans,technologicalstandards,technologicalspecifications,originaldesignsanddocumentsontechnologicalprocesses,aswellasothertechnologyfilesrelevanttotheperformanceofthecontractmaybedeemedasanintegralpartofthecontractasagreeduponbythepartiesinthecontract.

Whereatechnologycontractinvolvespatents,thetitleoftheinventionorcreation,thepatentapplicantandthepatentee,thedateandnumberofapplication,thepatentnumberaswellasthevalidtimeperiodofpatentrightsshallbeindicated.

Article325Themethodofpaymentofprice,remunerationorroyaltiesinthetechnologycontractshallbeagreeduponbytheparties.Thepartiesmayagreeonthemethodofanoverallcalculationandonetimepayment,orofanoverallcalculationandpaymentbyinstallment.Theymayalsoagreeonthemethodofproportionatepaymentorsuchpaymentplusanadvancepaymentofentrancefee.

Wherethemethodofproportionatepaymentisagreeduponinthecontract,thepaymentmaybemadeaccordingtoaspecificproportiontothepriceoftheproduct,totheincreasedvalueofoutputderivedfromexploitationofthepatentorfromuseoftheknow-how,totheprofitortothesales.Theymayalsoagreeonothermethodsofcalculation.Theproportionmaybeafixedproportion,oraproportionwithyearlyprogressiveincreaseordecrease.

Wheretheproportionatepaymentisagreedupon,thepartiesshallagreeinthecontractonthemethodsofcheckingontherelevantaccountingbooks.

Article326Wheretherighttouseortotransferajob-relatedtechnologicalachievementbelongstothelegalpersonorotherorganization,thelegalpersonorotherorganizationmayconcludetechnologycontractswithregardtothejob-relatedtechnologicalachievement.Thelegalpersonorotherorganizationshallextractacertainproportionfromtheproceedsacquiredfromtheuseandtransferofsuchjob-relatedtechnologicalachievementtorewardorremuneratetheindividualwhoaccomplishedthistechnologicalachievement.Wherealegalpersonotherorganizationconcludesatechnologycontracttotransferthejob-relatedtechnologicalachievement,theindividualwhoaccomplishedthistechnologicalachievementshallhavetheprioritytobethetransfereeonequalconditions.

Ajob-relatedtechnologicalachievementreferstoatechnologicalachievementaccomplishedintheprocessofcarryingoutthetaskofthelegalperson,orotherorganization,ormainlythroughusingthematerialsandtechnologicalmeansthereof.

Article327Therighttouseortransferanon-job-relatedtechnologicalachievementbelongstotheindividualwhoaccomplishedit.Theindividualmayconcludeatechnologycontractonsuchnon-job-relatedtechnologicalachievement.

Article328Anindividualwhohasaccomplishedatechnologicalachievementshallhavetherighttobenamedassuchinthedocumentsrelatedtothetechnologicalachievementandtherighttoreceivecertificatesofhonorandawards.

Article329Atechnologycontractwhichmonopolizesthetechnologyorimpedesthetechnologicalprogress,orwhichinfringesuponthetechnologicalachievementofothersshallbenullandvoid.

SECTION2CONTRACTSFORTECHNOLOGYDEVELOPMENT

Article330Atechnologydevelopmentcontractreferstoacontractconcludedbetweenthepartiesforpurposeofconductingresearchinanddevelopmentofnewtechnologies,newproducts,newprocessesandnewmaterialsaswellastheirsystems.

Technologydevelopmentcontractsincludecommissioneddevelopmentcontractsandcooperativedevelopmentcontracts.

Atechnologydevelopmentcontractshallbeinwritenform.

Acontractconcludedbetweenthepartiesforpurposeofapplicationorcommercializationofcertaintechnologicalachievementwhichhaspotentialvalueforindustrialapplicationshallapplytheprovisionsconcerningtechnologydevelopmentcontractsmutatismutandis.

Article331Thecommissioningpartytoacommissioneddevelopmentcontractshallpayfortheresearchanddevelopmentexpensesandtheremuneration,supplytechnologicalmaterialsandoriginaldata,accomplishcoordinatingtasksandaccepttheresultofresearchanddevelopmentontimeaccordingtothetermsofthecontract.

Article332Thepartyresponsibleforresearchanddevelopmentshall,accordingtothetermsofthecontract,formulateandimplementaresearchanddevelopmentplan,usetheresearchanddevelopmentbudgetinareasonableway,completetheresearchanddevelopmentontime,delivertheachievementaccordingtotheschedule,providerelevanttechnologicalmaterialsandnecessarytechnicalguidanceandassistthecommissioningpartyinmasteringtheachievementoftheresearchanddevelopment.

Article333Wherethecommissioningpartyviolatesthecontractandcausesastandstill,delayorfailureintheresearchanddevelopmentwork,suchpartyshallbeliableforthebreachofcontract.

Article334Wherethepartyresponsibleforresearchanddevelopmentviolatesthecontractandcausesastandstill,delayorfailureintheresearchanddevelopmentwork,suchpartyshallbeliableforthebreachofcontract.

Article335Partiestoacooperativedevelopmentcontractshall,maketheinvestmentaccordingtothetermsofthecontractincludingmakinginvestmentbywayoftechnologycontribution,takingpartintheresearchanddevelopmentinlightofthedivisionoflaboraccordingtothetermsofthecontract,andcooperatingwithotherpartiestothecontractintheresearchanddevelopmentwork.

Article336Whereapartytoacooperativedevelopmentcontractviolatesthecontractandcausesastandstill,delayorfailureintheresearchanddevelopmentwork,suchpartyshallbeliableforthebreachofcontract.

Article337Wherethetargetedtechnologyinatechnologydevelopmentcontracthasbeenmadepublicbyothers,whichmakestheperformanceofthistechnologydevelopmentcontractmeaningless,thepartiesmayrescindthecontract.

Article338Theliabilityforrisksinvolvedinafailureorpartialfailureintheresearchanddevelopmentresultingfrominsurmountabletechnicaldifficultiesoccurringintheprocessofperformingatechnologydevelopmentcontractshallbeagreeduponbythepartiestothecontract.Intheabsenceofsuchanagreementinthecontractorincaseofambiguityofsuchagreement,norcanitbedeterminedaccordingtotheprovisionsofArticle61ofthisLaw,suchriskliabilityshallbesharedreasonablelybytheparties.

Whereonepartydiscoversthatthesituationstipulatedintheprecedingparagraphislikelytoresultinafailureorpartialfailureintheresearchanddevelopment,thepartyshallpromptlyinformtheotherpartyofthesituationandtakeappropriatemeasurestoreducelosses.Wherethepartyfailsinmakingthenoticeandtakingappropriatemeasures,andthusenlargingthelosses,itshallbeliablefortheenlargedlosses.

Article339Withrespecttoinventionsandcreationsachievedintheperformanceofacommissioneddevelopment,therighttoapplyforapatentbelongstothepartythatundertakestheresearchanddevelopment,exceptasotherwiseagreeduponbytheparties.Wherethepartythatundertakestheresearchanddevelopmentisgrantedapatentright,thecommissioningpartymayexploitthepatentforfree.

Wherethepartyundertakingtheresearchanddevelopmenttransferstherighttoapplyforapatent,thecommissioningpartyshallhavetherighttopriorityinacquiringsuchrightonequalconditions.

Article340Withrespecttoinventionsandcreationsincooperativedevelopment,therighttoapplyforapatentshallbejointlyownedbythepartieswhoparticipatedinthecooperativedevelopment,exceptasotherwiseagreeduponbytheparties.Whereonepartytransfersitspartofthejointlyownedrighttoapplyforapatent,theotherpartyorpartiesmayhavetherighttopriorityinacquiringsuchrightonequalconditions.

Whereonepartytothecooperativedevelopmentcontractdeclaresthatitrenouncesitspartofthesharedrighttoapplyforapatent,theotherpartymayapplyforitaloneortheotherpartiesmayapplyforitjointly.Whereapatentisgrantedtotheapplicant,thepartythatrenounceditsrighttoapplyforapatentmayexploitthepatentforfree.

Whereonepartytoacooperativedevelopmentcontractdoesnotagreetoapplyforapatent,theotherpartyorpartiesmaynotapplyforit.

Article341Therighttouseortotransfertheknow-howachievedinthecommissioneddevelopmentorcooperativedevelopment,andthemethodofdistributingtheproceedsderivedshallbeagreeduponbythepartiesinthecontract.Intheabsenceofsuchagreementorincaseofambiguityofsuchagreement,norcanitbedeterminedaccordingtotheprovisionsofArticle61ofthislaw,eitherpartyhastherighttouseandtransferit.However,thepartyundertakingtheresearchanddevelopmentunderacommissioneddevelopmentcontractmaynottransfertheresultoftheresearchanddevelopmenttoathirdpartybeforedeliveringthemtothecommissioningparty.

SECTION3CONTRACTSFORTECHNOLOGYTRANSFER

Article342Technologytransfercontractsincludecontractsonpatenttransfer,contractsontransferoftherighttoapplyforapatent,contractsontransferofknow-howandcontractsonthelicensingofpatentexploitation.

Atechnologytransfercontractshallbeinwrittenform.

Article343Thescopeoftheexploitationofapatentortheuseoftheknow-howbythetransferorandthetransfereemaybeagreeduponinatechnologytransfercontractprovidedthatnorestrictionmaybeimposedontechnologicalcompetitionandtechnologicaldevelopment.

Article344Acontractforthelicensingofpatentexploitationshallbevalidonlywithinthevalidperiodofthepatentright.Oncethepatentrightexpiresoritisdeclaredasinvalid,thepatenteemaynotconcludeanycontractwithothersforlicensingoftheexploitationofthesaidpatent.

Article345Thetransferorofapatentexploitationlicensingcontractshall,accordingtothetermsofthecontract,permitthetransfereetoexploitthepatent,submitthetechnologicalmaterialsrelevanttotheexploitationofthepatentandprovidenecessarytechnicalguidance.

Article346Thetransfereeofapatentexploitationlicensingcontractshallexploitthepatentaccordingtothetermsofthecontract,andmaynotpermitanythirdpartyotherthanasprovidedforinthecontracttoexploitsuchpatent,andshallpaytheroyaltiesaccordingtothetermsofthecontract.

Article347Thetransferorofaknow-howtransfercontractshall,asagreeduponinthecontract,supplytechnolgicalmaterials,conducttechnicalguidanceandensurethepracticalapplicabilityandreliabilityoftheknow-howaswellasundertaketheobligationofmaintainingconfidentiality.

Article348Thetransfereeofaknow-howtransfercontractshallusetheknow-how,paytheroyaltiesandundertaketheobligationofmaintainingconfidentialityaccordingtothetermsofthecontract.

Article349Thetransferorofatechnologytransfercontractshallguaranteethathe/sheisthelawfulownerofthesuppliedtechnologyandthatthesuppliedtechnologyiscomplete,withoutmistakes,effectiveandabletoaccomplishtheagreedgoal.

Article350Thetransfereeofatechnologytransfercontractshall,inconformitywiththescopeandthetimeperiodasagreeduponinthecontract,assumetheobligationofmaintainingconfidentialityfortheundisclosedpartofthetechnologysuppliedbythetransferor.

Article351Atransferorfailingtotransferthetechnologyaccordingtothetermsofthecontract,shallreturnpartortotaloftheroyaltiesandbeliableforthebreachofcontract.Thepartyexploitingthepatentorknow-howexceedingtheagreedscope,orunilaterallypermitathirdpartytoexploitthepatentorusetheknow-howinviolationofthecontract,shallceasetheactofbreachofcontractandbeliableforthebreachofcontract.Apartyviolatingtheagreedobligationofmaintainingconfidentialityshallbeliableforthebreachofcontract.

Article352Atransfereefailingtopaytheroyaltiesaccordingtothetermsofthecontractshall,makeupsuchpaymentandpaythebreachofcontractdamagesasagreedupon.Thetransfereerefusingtopaytheoverdueroyaltiesorthebreachofcontractdamages,shallceasetheexploitationofthepatentortheuseoftheknow-how,returnthetechnologicalmaterialsandbeliableforthebreachofcontract.Atransfereeexploitingthepatentorusingtheknow-howinawayexceedingthescopeasagreeduponinthecontract,orpermittingathirdpartytoexploitthepatentorusetheknow-howwithouttheconsentofthetransferor,shallceasetheactofbreachofcontractandbeliableforthebreachofcontract.Atransfereeviolatingtheagreedobligationformaintainingconfidentialityshallbeliableforthebreachofcontract.

Article353Wheretheexploitationofapatentortheuseofknow-howbyatransfereeinaccordancewiththetermsofthecontractinfringesuponthelegitimaterightsandinterestsofothers,thetransferorshallbeliable,exceptasotherwiseagreeduponbytheparties.

Article354Thepartiesmaystipulateinatechnologytransfercontract,themethodofsharingtechnologicalachievementsobtainedfromthefollow-upimprovementsmadeintheexploitationofapatentortheuseofknow-howinlightoftheprincipleofmutualbenefit.Wherethereisnosuchagreementinthecontractorsuchagreementisunclear,norcanitbedeterminedaccordingtotheprovisionsofArticle61ofthisLaw,theotherpartiesshallhavenorighttosharethetechnologicalachievementsmadebyonepartyinthefollow-upimprovement.

Article355Wherethelawsandadministrativeregulationsstipulateotherwiseonthetechnologyimportandexportcontracts,orpatentcontractsorcontractsonapplicationforpatents,suchprovisionsshallbefollowed.

SECTION4CONTRACTSFORTECHNICALCONSULTANCYANDTECHNICALSERVICE

Article356Technicalconsultancycontractsincludecontractswherebyfeasibilitystudies,technologicalforecasts,technicalinvestigationsandanalyticalevaluationreportsshallbeprovidedinrespectofspecificprojects.

Technicalservicecontractsrefertocontractswherebyonepartyundertakestosolvespecifictechnicalproblemsbyusingitstechnicalexpertisefortheotherparty,excludingcontractsforconstructionprojectsandcontractsforwork.

Article357Thecommissioningpartyofatechnicalconsultancycontractshall,asagreeduponinthecontract,stateclearlythequestionsraisedforconsultancy,supplytechnologicalbackgroundinformationandrelevanttechnicalmaterialsanddata,acceptfromthecommissionedpartytheresultofitsworkandpaytheremuneration.

Article358Thecommissionedpartyofatechnicalconsultancycontractshallcompletetheconsultancyreportoranswerthequestionsraisedbythecommissioningpartyaccordingtotheagreedtimelimit.Theconsultancyreportthussubmittedshallmeettherequirementsasagreeduponinthecontract.

Article359Wherethecommissioningpartyofatechnicalconsultancycontractfailstosupplythenecessarymaterialsanddataaccordingtothetermsofthecontractwhichconsequentlyaffectstheprogressandqualityoftheconsultancywork,ordoesnotaccepttheresultoftheworkoracceptsitbeyondthetimelimit,theremunerationalreadypaidmaynotberefunded,andtheremunerationunpaidshallbepaidindueamount.

Wherethecommissionedpartyofatechnicalconsultancycontractfailstosubmittheconsultancyreportontimeorthereportthussubmitteddoesnotmeettherequirementsasagreeduponinthecontract,thesaidpartyshallbearsuchLiabilitiesforbreachofcontractasreducingorwaivingtheremuneration,etc.

Thelossesresultingfromdecisionsmadebythecommissioningpartyofatechnicalconsultancycontractonthebasisoftheconsultancyreportandoftheadviceofthecommissionedpartythatmeettherequirementsasagreeduponinthecontractshallbebornebythecommissioningparty,exceptasotherwiseagreeduponbythepartiesinthecontract.

Article360Thecommissioningpartyofatechnicalservicecontractshallsupplytheworkfacilitiesandaccomplishcooperativeundertakingsaccordingtothetermsofthecontract,andaccepttheresultoftheworkandpaytheremuneration.

Article361Thecommissionedpartyofatechnicalservicecontractshallcompletetheservices,solvethetechnicalproblems,guaranteethequalityofitsworkandconveytotheotherpartytheknowledgeonthesolvingoftechnicalproblemsaccordingtothetermsofthecontract.

Article362Wherethecommissioningpartyofatechnicalservicecontractfailstoperformthecontractortheperformanceisnotinconformitywiththetermsofthecontract,whichconsequentlyaffectstheprogressandthequalityofthework,ordoesnotaccepttheresultoftheworkoracceptsitbeyondthetimelimit,theremunerationalreadypaidmaynotberefunded,andtheremunerationunpaidshallbepaidindueamount.

Wherethecommissionedpartyfailstocompletetheserviceworkinconformitywiththetermsofthecontract,thesaidpartyshallbearsuchliabilitiesforbreachofcontractaswaivingtheremuneration,etc.

Article363Anynewtechnologicalachievementaccomplishedbythecommissionedpartyintheperformanceofatechnicalconsultancycontractoratechnicalservicecontractusingthetechnologicalmaterialsandworkfacilitiessuppliedbythecommissioningparty,shallbelongtothecommissionedparty,whileanynewtechnologicalachievementaccomplishedbythecommissioningpartyusingtheresultsoftheworkofthecommissionedparty,shallbelongtothecommissioningparty,exceptasotherwiseagreeduponbythepartiesinthecontract.

Article364Wherethelawsandregulationsstipulateotherwiseontechnicalintermediationcontractsandtechnicaltrainingcontracts,suchprovisionsshallbefollowed.

Article365Astoragecontractreferstoacontractwherebythesafekeepingpartykeepsinstorethearticlehandedoverbythestoringparty,andreturnsthesaidarticle.

Article366Thestoringpartyshall,accordingtothetermsofthecontract,paytothesafekeepingpartythestoragefee.

Wherethereisnoagreementinthecontractregardingthestoragefee,orsuchagreementisunclear,norcanitbedeterminedaccordingtotheprovisionsofArticle61ofthisLaw,thestorageshallbeforfree.

Article367Astoragecontractisestablishedatthetimewhenthearticletobestoredishandedover,exceptasotherwiseagreeduponbytheparties.

Article368Whenthestoringpartyhandsoverthearticletobestoredtothesafekeepingparty,thesafekeepingpartyshallissueastoragecertificate,exceptasotherwisepractisedintransactions.

Article369Thesafekeepingpartyshallkeepinappropriatestorethearticlestobestored.

Thepartiesmayagreeonthesiteormethodofstorage.Thesiteormethodofstoragemaynotbeunilaterallychangedexceptincaseofemergencyorforthepurposeofprotectingtheinterestsofthestoringparty.

Article370Whereanarticlehandedoverbythestoringpartyforstoragehasdefects,orspecialmeasuresneedtobetakenduetothecharacterofthearticle,thestoringpartyshallinformthesafekeepingpartyofsuchmacters.Wherethestoringpartyfailstoinformthesafekeepingpartyofsuchmactersandconsequentlycausesdamagetothestoredarticle,thesafekeepingpartyshallnotbeliablefordamages.Wherethesafekeepingpartysufferslossestherefromasaconsequence,thestoringpartyshallbeliablefordamages,exceptintheeventthesafekeepingpartyknowsthesituationoroughttoknowitbutfailstotakeanyremedialmeasures.

Article371Thesafekeepingpartymaynotturnthearticletobestoredovertoathirdpartyforstorage,execptasotherwiseagreeduponbythepartiesinthecontract.

Wherethesafekeepingpartyviolatestheprovisionsoftheprecedingparagraphandturnsthearticletobestoredovertoathirdpartyforstorage,thuscausingdamagetothearticle,thesaidpartyshallbeliablefordamages.

Article372Thesafekeepingpartymaynotuseorpermitathirdpartytousethestoredarticle,exceptasotherwiseagreeduponbytheparties.

Article373Whereathirdpartyclaimsrightsonthestoredarticle,thesafekeepingpartyshallperformtheobligationtoreturnthearticletothestoringparty,exceptthatapreservativemeasureorexecutivemeasureistakenaccordingtolawwithregardtothestoredarticle.

Whereathirdpartybringsalawsuitagainstthesafekeepingpartyorappliesforaseizurebythestoredarticle,thesafekeepingpartyshallpromptlyinformthestoringpartyofthecase.

Article374Whereduringtheperiodofstorage,thestoredarticleisdamaged,destroyedorlostduetoimproperstoragebythesafekeepingparty,thesafekeepingpartyshallbeliablefordamages.However,wherethestorageisprovidedforfree,andthesafekeepingpartyprovesthatithasnotactedwithgrossfault,itshallnotbeliablefordamages.

Article375Astoringpartydepositingcurrency,securitiesorotherpreciousarticlesshall,declarethecasetothesafekeepingparty,andthesafekeepingpartyshallinspectandsealupthearticleforstorage.Wherethestoringpartyfailstodeclareassuchandthearticleisdamaged,destroyedorlostafterwards,thesafekeepingpartymaycompensateforitasitisanordinaryarticle.

Article376Astoringpartymayclaimandgetbackthestoredarticleatanytime.

Wherethereisnoagreementbetweenthepartiesinthecontractastothetimeperiodofthestorage,thesafekeepingpartymayrequestthestoringpartytogetbackthestoredarticleatanytime.Wherethereissuchagreementonthetimeperiodofthestorage,thesafekeepingpartymaynotrequestthestoringpartytogetbackthestoredarticlebeforethetimeperiodexpireswithoutspecialcauses.

Article377Ontheexpiryofthestoragetimeperiodorwhenthestoringpartyclaimsandgetsbackthearticlebeforetheexpiry,thesafekeepingpartyshallreturntothestoringpartytheoriginalarticleandthefruitsgeneratedtherefrom.

Article378Asafekeepingpartykeepinginstorecurrencymayreturnthecurrencyofthesamekindandinthesameamount.Incaseofstoringotherreplaceablearticles,thesafekeepingpartymayreturntothestoringpartyarticlesofthesamecategory,qualityandquantityaccordingtothetermsofthecontract.

Article379Withregardtonon-gratuitousstoragecontracts,thestoringpartyshallpaytothesafekeepingpartythestoragefeeaccordingtothetimelimitasagreeduponbytheparties.

Wherethereisnoagreementastothetimelimitforthepaymentinthecontractorsuchagreementisunclear,norcanitbedeterminedaccordingtotheprovisionsofArticle61ofthisLaw,thestoragefeeshallbepaidatthesametimewhenthestoredarticleisclaimedandtakenback.

Article380Whereastoringpartyfailstopaythestoragefeeandotherexpensesaccordingtothetermsofthecontract,thesafekeepingpartyisentitledtolienonthestoredarticle,exceptasotherwiseagreeduponbytheparties.

CHAPTER20CONTRACTSFORWAREHOUSING

Article381Awarehousingcontractreferstoacontractwherebythesafekeepingpartykeepsinstorethegoodshandedoverbythestoringparty,whilethestoringpartypaysthewarehousingfee.

Article382Awarehousingcontractcomesintoeffectatthetimeofitsestablishment.

Article383Whereinflammable,explosive,poisonous,corrosive,radioactiveandotherdangerousorperishablearticlesaretobekeptinstore,thestoringpartyshallindicatethecharacterofthegoodsandproviderelevantdocumentsandmaterialsthereof.

Whereastoringpartyviolatestheprovisionsoftheprecedingparagraph,thesafekeepingpartymayrefusetoreceivethegoods,ormaytakeappropriatemeasurestoavoidlosses.Thecostconsequentlyincurredshallbebornebythestoringparty.

Thesafekeepingpartyshallhaveappropriatesafekeepingfacilitiesforthestorageofinflammable,explosive,poisonous,corrosive,radioactiveandotherdangerousarticles.

Article384Thesafekeepingpartyshallinspect,beforelettingin,thewarehousinggoodsinconformitywiththetermsofthecontract.Asafekeepingpartydiscoveringintheinspectionthatthegoodsarenotinconformitywiththetermsofthecontractshall,informthestoringpartyofthecasepromptly.Aftertheinspectionandacceptancebythesafekeepingparty,thesafekeepingpartyshallbeliablefordamagesifitisdiscoveredthatthecategory,quantityorqualityofthewarehousinggoodsarenotinconformitywiththetermsofthecontract.

Article385Uponhandingoverthegoodsbythestoringparty,thesafekeepingpartyshallissueawarehousevoucher.

Article386Thesafekeepingpartyshallsignonthewarehousevoucheroraffixasealonit.Awarehousevouchershallcontainthefollowingitems:

(1)titleornameanddomicileofthestoringparty;

(2)category,quantity,quality,package,numberofpiecesandmarksofthewarehousinggoods;

(3)standardsofspoilageofthewarehousinggoods;

(4)placeofstorage;

(5)timeperiodofstorage;

(6)warehousingfee;

(7)wherethewarehousinggoodshavebeeninsured,theamountandtimeperiodoftheinsuranceandthetitleoftheinsurancecompany;and

(8)nameofthepersonwhoissuesthewarehousevoucher,theplaceandthedateofissuance.

Article387Awarehousevoucheristhecertificateforclaimingthewarehousinggoods.Therighttoclaimthewarehousinggoodsmaybetransferredwhenthewarehousevoucherisendorsedbythestoringpartyorthepersonwhoholdsthewarehousevoucher,andsignedoraffixedwithasealbythesafekeepingparty.

Article388Attherequestofthestoringpartyorthepersonwhoholdsthewarehousevoucher,thesafekeepingpartyshallpermitthepersontocheckthewarehousinggoodsortakesamples.

Article389Intheeventthatthesafekeepingpartydiscoversthatthewarehousinggoodsaredeterioratedorotherwisedamaged,thesaidpartyshallinformthestoringpartyortheholderofthewarehousevoucherofthecasepromptly.

Article390Intheeventthatthesafekeepingpartydiscoversthatthelettinginwarehousinggoodsaredeterioratedorotherwisedamaged,thusendangeringthesafetyandthenormalstorageofotherwarehousinggoods,thesaidpartyshallnotifyandurgethestoringpartyortheholderofthewarehousevouchertomakenecessarydisposal.Incaseofemergency,thesafekeepingpartymaymakethenecessarydisposal,butshallinformthestoringpartyortheholderofthewarehousevoucherofthecasepromptlyafterwards.

Article391Wherethereisnoagreementinthecontractbetweenthepartiesastothetimeperiodofthestorageorsuchagreementisunclear,thestoringpartyorthepersonwhoholdsthewarehousevouchermayclaimandgetbackthewarehousinggoodsatanytime,thesafekeepingpartymayalsoatanytimerequestthestoringpartytoclaimthewarehousinggoods,providedthatatimeperiodnecessaryforpreparationshallbegiven.

Article392Whenthestoragetimeperiodexpires,thestoringpartyortheholderofthewarehousevouchershallclaimandgetbackthewarehousinggoods.Wherethestoringpartyortheholderofthewarehousevoucherfailstoclaimthegoodsontime,additionalwarehousefeeshallbepaid.Wherethegoodsareclaimedbeforethetimeperiodexpires,thewarehousestoragefeeshallnotbereduced.

Article393Wherethestoringpartyortheholderofthewarehousevoucherdoesnotclaimthewarehousedgoodswhenthetimeperiodexpires,thesafekeepingpartymayurgetheholdertoclaimthegoodswithinareasonabletimeperiod.Afterthisadditionaltimeperiodexpires,thesafekeepingpartymayhavethegoodsdeposited.

Article394If,duringthetimeperiodofstorage,thewarehousinggoodsaredamaged,destroyedorlostduetoimproperstoragebythesafekeepingparty,thesafekeepingpartyshallbeliablefordamages.Wherethewarehousinggoodsareperishedordamagedduetoinconformityofthecharacterofthewarehousinggoodsorofthepackingwiththetermsofthecontract,orthefactthatthegoodsexceedthevalidstorageperiod,thesafekeepingpartyshallnotbeliable.

Article395MattersnotaddressedinthisChaptershallapply,therelevantprovisionsgoverningstoragecontracts.

CHAPTER21CONTRACTSFORCOMMISSION

Article396Acommissioncontractreferstoacontractwherebytheprincipalandtheagentagreethattheagentshallhandlethematersoftheprincipal.

Article397Aprincipalmayspeciallyentrustanagenttohandleoneorseveralitemsofmatters,orgenerallyentrusttheagenttohandleallmatters.

Article398Theprincipalshallpaytheexpensesforhandlingtheentrustedmattersinadvance.Incasethattheagenthasprepaidthenecessaryexpensesforhandlingtheentrustedmatters,theprincipalshallreimbursetheexpensesandtheinterestthereof.

Article399Theagentshallhandletheentrustedmattersaccordingtotheinstructionoftheprincipal.Wheretheinstructionoftheprincipalneedtobemodified,consentoftheprincipalshallbeobtained;incaseofsuchemergencythatitisdifficulttocontacttheprincipal,theagentshallhandletheentrustedmattersproperlyandreporttotheprincipalthecasepromptlyafterwards.

Article400Theagentshallhandletheentrustedmattershimself/herself.Withtheconsentoftheprincipal,theagentmaysub-entrustthematter.Ifthesub-entrustmenthasobtainedconsent,theprincipalmaydirectlygiveinstructionstothesub-entrustedthirdparty,andtheagentshallbeliableonlyfortheselectionofthethirdpartyandhisowninstructionstothethirdparty.Ifthesub-entrustmenthasnotobtainedtheconsent,theagentshallbeliableforthethirdparty sacts,exceptthatinanemergencythesub-entrustmentisnecessaryfortheprotectionoftheinterestsoftheprincipal.

Article401Theagentshallreportthehandlingoftheentrustedmattersaccordingtotherequirementsoftheprincipal.Theagentshallreporttheresultoftheentrustedmatterswhenthecommissioncontractisterminated.

Article402Ifwithinthescopeofthepowerdelegatedbytheprincipal,theagent,inhis/herownname,concludesacontractwithathirdparty,andthethirdpartyknowstheproxyrelationshipbetweentheagentandprincipalatthetimeofconcludingthecontract,thecontractshalldirectlybindtheprincipalandthethirdparty,unlessthereareconclusiveevidencestoprovethatthesaidcontractonlybindstheagentandthethirdparty.

Article403Whenanagentconcludesacontractinhis/herownnamewithathirdparty,andthethirdpartydoesnotknowtheproxyrelationshipbetweentheagentandprincipal,andiftheagentdoesnotperformtheobligationinrespectoftheprincipalduetocausesofthethirdparty,theagentshalldisclosethethirdpartytotheprincipal.Theprincipalhencemayexercisetheagent srightsagainstthethirdparty,exceptthatthethirdpartywillnotconcludethecontractwiththeagentifheknowstheprincipalatthetimeofconcludingthecontract.

Iftheagentdoesnotperformtheobligationsinrespectofthethirdpartyduetocausesoftheprincipal,theagentshalldisclosetheprincipaltothethirdparty.Thethirdpartyhencemaychoosetheagentortheprincipalasthecounterparttoclaimitsrights,butthethirdpartymaynotchangethechosencounterpart.

Wheretheprincipalexercisetheagent srightsagainstthethirdparty,thethirdpartymayclaimitsdemurinrespectoftheagentagainsttheprincipal.Wherethethirdpartychoosestheprincipalasitscounterpart,theprincipalmayclaimitsdemurinrespectoftheagentaswellasthedemuroftheagentinrespectofthethirdpartyagainstthethirdparty.

Article404Theagentshallhandovertotheprincipalthepropertyobtainedfromhandlingtheentrustedmatters.

Article405Whentheagenthasfinishedtheentrustedmatters,theprincipalshallpayremunerationtoit.If,duetocausesnotattributabletotheagent,thecommissioncontractisrescindedortheentrustedmatterscannotbefinished,theprincipalshallpaytheagentcorrespondingremuneration.Ifotherwiseagreeduponinthecontract,thetermsofthecontractshallbeapplied.

Article406Inrespectofanon-gratuitouscommissioncontract,wheretheprincipalsuffersfromlossesduetothefaultoftheagent,theprincipalmayclaimcompensationforthelosses.Inrespectofagratuitouscommissioncontract,wheretheprincipalsuffersfromlossesduetothedeliberateintentionorgrossfaultoftheagent,theprincipalmayclaimcompensationforthelosses.

Wheretheagentisultraviresandcauseslossestotheprincipal,theagentshallcompensateforthelosses.

Article407If,inhandlingtheentrustedmatters,theagentsuffersfromlossesduetocausesnotattributabletoitsown,theagentmayrequesttheprincipaltocompensateforthelosses.

Article408Withtheconsentoftheagent,theprincipalmayentrustathirdpartyotherthantheagenttohandletheentrustedmatters.Inrespectoflossesthusincurredtotheagent,theagentmayrequesttheprincipaltocompensateforthelosses.

Article409Wheretwoormoreagentsjointlyhandletheentrustedmatters,theyshallassumejointandseveralliabilitiestotheprincipal.

Article410Theprincipaloragentmayrescindthecommissioncontractatanytime.ThepartywhocauseslossestotheotherpartyDuetotherescissionofthecommissioncontractshall,compensateforthelosses,exceptforcausesnotattributabletothesaidparty.

Article411Acommissioncontractshallbeterminatedwhenthedeceaseoftheprincipaloragentoccurs,ortheprincipaloragentlosescivilcapacityofconductorgoesintobankrupcy,exceptasotherwiseagreeduponbythepartiesinthecontractorexceptthatitisinappropriatetoterminatethecontractaccordingtothecharactersoftheentrustedmatters.

Article412Iftheterminationofacommissioncontractduetotheprincipal sdecease,lossofcivilcapacityofconductorbankruptcywillharmtheprincipal sinterests,theagentshallcontinuetohandletheentrustedmattersbeforetheprincipal sheir,statutoryagentorliquidationgrouptakeoverthesematters.

Article413Ifacommissioncontractisterminatedduetotheagent sdecease,lossofcivilcapacityofconductorbankruptcy,theagent sheir,statutoryagentorliquidationgroupshallnotifytheprincipalpromptly.Iftheterminationofthecommissioncontractwillharmtheprincipal sinterests,theagent sheir,statutoryagentorliquidationgroupshalltakenecessarymeasuresbeforetheprincipalmakesappropriatearrangementsindealingwiththesituation.

CHAPTER22CONTRACTSFORBROKERAGE

Article414Abrokeragecontractreferstoacontractwherebythebrokeris,inhis/herownname,engagedintradeactivitiesforthebenefitoftheprincipal,andtheprincipalpaystheremuneration.

Article415Theexpensesofthebrokeroccurredinhandlingtheentrustedmattersshallbebornebythebrokerexceptasotherwiseagreeduponbythepartiesinthecontract.

Article416Whenpossessingtheentrustedarticles,thebrokershallkeepinappropriatestorethesaidarticles.

Article417Iftheentrustedarticleshavedefectsorareperishableordeteriorativewhentheyaredeliveredtothebroker,thebrokermaydisposeofthesearticleswiththeconsentoftheprincipal.Wheretheprincipalcannotbecontactedintime,thebrokermaydisposeofthesearticlesinareasonablemanner.

Article418Wherethebrokersellsatalowerpriceorbuysatahigherpricethanthepricefixedbytheprincipal,consentshallbeobtainedfromtheprincipal.Withouttheprincipal sconsent,thetransactionshallbeeffectivetotheprincipalifthebrokermakesupthepricedifference.

Wherethebrokersellsatahigherpriceorbuysatalowerpricethanthepricefixedbytheprincipal,remunerationmayberaisedaccordingtothetermsofthecontract.Wherethereisnosuchagreementinthecontractorsuchagreementisunclear,norcanitbedeterminedaccordingtotheprovisionsofArticle61ofthisLaw,thebenefitsshallbelongtotheprincipal.

Wheretheprincipalhasspecialinstructionsonprice,thebrokermaynotbuyorsellviolatingtheseinstructions.

Article419Whensellingorbuyingcommoditiesofmarketfixedprice,thebrokermayactasabuyerorseller,unlesstheprincipalexpressesoppositely.

Thebrokermaystillrequesttheprincipalunderthecircumstancesstipulatedintheprecedingparagraphtopaytheremuneration.

Article420Wherethebrokerbuysintheentrustedarticlesaccordingtothetermsofthecontract,theprincipalshallacceptthesaidarticlesintime.If,afterthebroker surgingwithanotice,theprincipalrefusestoacceptthearticleswithoutjustifiedreasons,thebrokermaydeposittheentrustedarticlesaccordingtotheprovisionsofArticle101ofthisLaw.

Iftheentrustedarticlescannotbesoldoutortheprincipalrevokesthesale,andtheprincipaldoesnottakebackordisposeofthegoodsafterthebroker surgingwithanotice,thebrokermayhavetheentrustedarticlesdepositedaccordingtotheprovisionsofArticle101ofthislaw.

Article421Whereacontractisconcludedbetweenabrokerandathirdparty,thebrokershalldirectlyhavetherightsandassumeobligationsunderthecontract.

Ifthethirdpartyfailsinperformingitsobligationsandcauseslossestotheprincipal,thebrokershallbeliablefordamages,exceptasotherwiseagreeduponbytheparties.

Article422Theprincipalshallpaytothebrokercorrespondingremunerationwhenthebrokerhasfinishedthewholeorpartoftheentrustedmatters.Wheretheprincipalfailstopaytheremunerationinduetime,thebrokershallhavetherighttolienontheentrustedarticles,exceptasotherwiseagreeduponbytheparties.

Article423MattersnotaddressedinthisChaptershallapplytherelevantprovisionsgoverningcommissioncontracts.

CHAPTER23CONTRACTSFORINTERMEDIATION

Article424Anintermediationcontractreferstoacontractwherebytheintermediatorreportstotheprincipaltheopportunityforconcludingacontractorprovidesintermediateserviceforconcludingacontract,andtheprincipalpaystheremuneration.

Article425Theintermediatorshallreporttruthfullytotheprincipalthemattersrelatedtotheconclusionofacontract.

Wheretheintermediatorintentionallyconcealstheimportantfactsrelatingtotheconclusionofthecontractorprovidesfalseinformationandharmstheinterestsoftheprincipal,thesaidpartymaynotclaimthepaymentofremunerationandshallbeliablefordamages.

Article426Theprincipalshallpaytheintermediatorremunerationaccordingtothetermsofthecontractiftheintermediatorhasfacilitatedtheestablishmentofthecontract.Wherethereisnosuchagreementinthecontractonremunerationorsuchagreementisunclear,norcanitbedeterminedaccordingtotheprovisionsofArticle61ofthisLaw,theremunerationshallbedeterminedreasonablyaccordingtotheservicerenderedbytheintermediator.Iftheestablishmentofacontracthasbeenfacilitatedbytheintermediateservicerenderedbytheintermediator,theremunerationshallbeborneequallybythepartiestothecontract.

Wheretheintermediatorhasfacilitatedtheconclusionofthecontract,theexpensesfortheintermediateserviceshallbebornebytheintermediator.

Article427Wheretheintermediatorfailsinfacilitatingtheconclusionofacontract,theintermediatormaynotrequestforthepaymentofremuneration,butmayrequesttheprincipaltopaythenecessaryexpensesfortheintermediateservice.

Article428ThisLawshallcomeintoforceasofOctober1st,1999.TheEconomicContractLawofthePeople sRepublicofChina,theLawofthePeople sRepublicofChinaonEconomicContractsInvolvingForeignInterestsandtheLawofthePeople sRepublicofChinaonTechnologyContractsshallbeinvalidatedsimultaneously.