Interpretation of the Supreme People's Court on Certain Issues Concerning the Application of the Contract Law of the People's Republic of China (I)
Interpretation of the Supreme People's Court on Certain Issues Concerning the Application of the Contract Law of the People's Republic of China (I)
Interpretation of the Supreme People's Court on Certain Issues Concerning the Application of the Contract Law of the People's Republic of China (I)
Fa Shi [1999] No.19
December 29, 1999
The Interpretation of the Supreme People's Court on Certain Issues Concerning the Application of The Contract Law of the People's Republic of China (I), which was adopted at the 1090th Session of the Judicial Committee of the Supreme People's Court on December 1, 1999, is hereby promulgated with effect from December 29, 1999.
Interpretations of the Supreme People's Court on Certain Issues Concerning the Application of the Contract Law of the People's Republic of China (I)
(Adopted at the 1090th Session of the Judicial Committee of the Supreme People's Court on December 1, 1999)
Fa Shi [1999] No.19
To correctly try contract dispute cases and subject to the Contract Law of the People's Republic of China (hereinafter the "Contract Law"), the following interpretation is given on certain issues regarding the application of the Contract Law by the people's courts:
Chapter I Scope of Application
Article 1 The Contract Law shall apply to any lawsuit brought to a people's court in respect of a dispute arising from a contract established after the effective date of the Contract Law; except otherwise provided herein, any lawsuit brought to a people's court in respect of a dispute arising from a contract established before the effective date of the Contract Law shall be governed by the legal provisions in effect at the time of the execution of such contract, and in absence of such legal provisions, the relevant provisions of the Contract Law may apply.
Article 2 Any dispute arising from the performance of a contract established before the effective date of the Contract Law but prescribing a period of performance going beyond or commencing after the effective date of the Contract Law shall be subject to the relevant provisions of Chapter IV of the Contract Law.
Article 3 Where the people’s court is to decide the validity of a contract established before the effective date of the Contract Law, if such contract is invalid under the law in effect at the time of its execution but valid under the Contract Law, the Contract Law shall be applied.
Article 4 After the Contract Law comes into effect, the people's court may only invalidate a contract under a law adopted by the National People's Congress or its Standing Committee or any administrative regulations enacted by the State Council, and may not invalidate a contract under any local statutes or administrative rules.
Article 5 Where a people's court conducts a retrial of a case on which a final judgment has been rendered before the effective date of the Contract Law, the Contract Law shall not apply.
Chapter II Limitation of Action
Article 6 In the event of a dispute arising from a technology contract, wherein the fact of infringement of the right of a party takes place before the effective date of the Contract Law, if the period from the date on which such party knows or ought to have known the infringement of such right to the effective date of the Contract Law exceeds one year, such right of the party shall no longer be protected by the people’s court; if the said period is less than one year, the limitation of action for the party shall be two years.
Article 7 In the event of a dispute arising from a technology import or export contract, wherein the fact of infringement of the right of a party takes place before the effective date of the Contract Law, if the period from the date on which the party knows or ought to have known the infringement of such right to the effective date of the Contract Law exceeds two years, such right of the party shall no longer be protected by the people’s court; if the said period is less than two years, the limitation of action for the party shall be four years.
Article 8 The "one year" set out in Article 55,and the "five years" set out in Article 75 and Paragraph 2 of Article 104 of the Contract Law are unalterable time limits and not subject to rules on suspension, interruption or extension of the limitation of action.
Chapter III Effectiveness of Contract
Article 9 Where according to Paragraph 2 of Article 44 of the Contract Law, a contract is subject to approval or approval and registration and other procedure to become effective as prescribed by laws or administrative regulations, if such approval, or approval and registration and other procedure is still not completed before the end of the court debate in the trial of the first instance, the people's court shall determine such contract as having not become effective; where a contract is required to be registered according to relevant laws or administration regulations without having its effectiveness subject to such registration, the failure to make a registration shall not affect the effectiveness of the contract but the ownership and other property rights in and to the subject matter of the contract shall not be transferred.
In cases of modification, assignment and revocation of a contract as respectively set forth in Paragraph 2 of Article 77, Article 87 and Paragraph 2 of Article 96 of the Contract Law, the preceding paragraph shall apply.
Article 10 The people’s court shall not invalidate a contract concluded exceeding the business scope of either party on the ground of such excess, except where such contract is in violation of any state restrictions or franchising requirement or any prohibition under laws or administrative regulation on certain business activities.
Chapter IV Subrogation
Article 11 Where the obligee is to bring a subrogation suit under Article 73 of the Contract Law, the following conditions shall be satisfied:
1.
......
Fa Shi [1999] No.19
December 29, 1999
The Interpretation of the Supreme People's Court on Certain Issues Concerning the Application of The Contract Law of the People's Republic of China (I), which was adopted at the 1090th Session of the Judicial Committee of the Supreme People's Court on December 1, 1999, is hereby promulgated with effect from December 29, 1999.
Interpretations of the Supreme People's Court on Certain Issues Concerning the Application of the Contract Law of the People's Republic of China (I)
(Adopted at the 1090th Session of the Judicial Committee of the Supreme People's Court on December 1, 1999)
Fa Shi [1999] No.19
To correctly try contract dispute cases and subject to the Contract Law of the People's Republic of China (hereinafter the "Contract Law"), the following interpretation is given on certain issues regarding the application of the Contract Law by the people's courts:
Chapter I Scope of Application
Article 1 The Contract Law shall apply to any lawsuit brought to a people's court in respect of a dispute arising from a contract established after the effective date of the Contract Law; except otherwise provided herein, any lawsuit brought to a people's court in respect of a dispute arising from a contract established before the effective date of the Contract Law shall be governed by the legal provisions in effect at the time of the execution of such contract, and in absence of such legal provisions, the relevant provisions of the Contract Law may apply.
Article 2 Any dispute arising from the performance of a contract established before the effective date of the Contract Law but prescribing a period of performance going beyond or commencing after the effective date of the Contract Law shall be subject to the relevant provisions of Chapter IV of the Contract Law.
Article 3 Where the people’s court is to decide the validity of a contract established before the effective date of the Contract Law, if such contract is invalid under the law in effect at the time of its execution but valid under the Contract Law, the Contract Law shall be applied.
Article 4 After the Contract Law comes into effect, the people's court may only invalidate a contract under a law adopted by the National People's Congress or its Standing Committee or any administrative regulations enacted by the State Council, and may not invalidate a contract under any local statutes or administrative rules.
Article 5 Where a people's court conducts a retrial of a case on which a final judgment has been rendered before the effective date of the Contract Law, the Contract Law shall not apply.
Chapter II Limitation of Action
Article 6 In the event of a dispute arising from a technology contract, wherein the fact of infringement of the right of a party takes place before the effective date of the Contract Law, if the period from the date on which such party knows or ought to have known the infringement of such right to the effective date of the Contract Law exceeds one year, such right of the party shall no longer be protected by the people’s court; if the said period is less than one year, the limitation of action for the party shall be two years.
Article 7 In the event of a dispute arising from a technology import or export contract, wherein the fact of infringement of the right of a party takes place before the effective date of the Contract Law, if the period from the date on which the party knows or ought to have known the infringement of such right to the effective date of the Contract Law exceeds two years, such right of the party shall no longer be protected by the people’s court; if the said period is less than two years, the limitation of action for the party shall be four years.
Article 8 The "one year" set out in Article 55,and the "five years" set out in Article 75 and Paragraph 2 of Article 104 of the Contract Law are unalterable time limits and not subject to rules on suspension, interruption or extension of the limitation of action.
Chapter III Effectiveness of Contract
Article 9 Where according to Paragraph 2 of Article 44 of the Contract Law, a contract is subject to approval or approval and registration and other procedure to become effective as prescribed by laws or administrative regulations, if such approval, or approval and registration and other procedure is still not completed before the end of the court debate in the trial of the first instance, the people's court shall determine such contract as having not become effective; where a contract is required to be registered according to relevant laws or administration regulations without having its effectiveness subject to such registration, the failure to make a registration shall not affect the effectiveness of the contract but the ownership and other property rights in and to the subject matter of the contract shall not be transferred.
In cases of modification, assignment and revocation of a contract as respectively set forth in Paragraph 2 of Article 77, Article 87 and Paragraph 2 of Article 96 of the Contract Law, the preceding paragraph shall apply.
Article 10 The people’s court shall not invalidate a contract concluded exceeding the business scope of either party on the ground of such excess, except where such contract is in violation of any state restrictions or franchising requirement or any prohibition under laws or administrative regulation on certain business activities.
Chapter IV Subrogation
Article 11 Where the obligee is to bring a subrogation suit under Article 73 of the Contract Law, the following conditions shall be satisfied:
1.
......