Page 200 - 2021 White Paper
P. 200
1 White Paper on the Business Environment in China
pursuant to the provisions of the laws and judicial such as purchase and sales contracts, lease
interpretations then in force, but is considered to contracts, loan contracts and transportation
be valid pursuant to the Civil Code, shall apply the contracts provided in the current Contract Law,
relevant provisions in the Civil Code. "16 "A contract the Civil Code adds 4 more typical contracts:
concluded before the implementation of the Civil guarantee contracts, factoring contracts, property
Code, where the party providing the standard service contracts and partnership contracts. We
terms fails to perform the obligation of reminder shall discuss these contracts after we deal with
or explanation, which involves the determination the mandatory contract system, the preliminary
of the validity of the standard terms, shall apply contract system and the standard clause system.
the Civil Code, Article 469."17
a. Mandatory Contract System
B. Overview of the Civil Code
The mandatory contract system primarily aims
The Civil Code consists of 7 chapters and 1260 to protect the interests of disadvantaged groups.
articles, divided into general provisions, property However, since the mandatory contract system
rights, contracts, personality rights, marriage violates the principle of freedom of contract, the
and family, inheritance, tort liability, and by-laws, use of such system must be subject to limiting
with totally over 106,600 words. The Civil Code conditions specified by laws and regulations.
includes basic principles binding civil activities, civil Therefore, it provides that a party obliged to make
subjects, guardianship, civil authorities, civil legal an offer under laws and administrative regulations
acts and agency, civil responsibility, statutes of shall, in a timely manner, make a reasonable offer.
limitation, property rights, contracts, guarantees, A party obliged to accept an offer under laws
protection of personality rights, marriage and and administrative regulations shall not reject a
family, adoption, inheritance and tort liability, etc. reasonable offer from the other party.
We shall initially discuss selected new provisions Parties are obliged to enter into contracts in
of law that have been added to the Civil Code, two main circumstances:
beyond the provisions of the nine laws that were
incorporated into the Civil Code.18 i. that such party is a public service company
with obligations of mandatory contract. In order
C. Innovation of Specific Systems to ensure people’s basic living requirements, this
chapter of contract provides that the suppliers
1. Contracts of electricity, water, gas and heat to the public
shall not reject a user's reasonable request for
There are 526 articles in the chapter on contracting.20 An article regarding transportation
contracts in the Civil Code19. In the general contracts states that a carrier engaged in public
provisions, the Civil Code has added the mandatory transportation shall not refuse the normal and
contract system, the preliminary contract system reasonable carriage request of a passenger or
and the standard clause system, while in specific consignor;21 and
provisions, in addition to the 15 typical contracts,
ii. that such party has a mandatory obligation
16 Several Provisions of the Supreme People's Court on to enter into a contract to undertake national
the Application of the Statute of Limitations in the Civil orders. When the State issues national orders and
Code of the People's Republic of China, Article 8 directive tasks in an emergency for disaster relief,
17 Several Provisions of the Supreme People's Court on epidemic prevention and control, the relevant civil
the Application of the Statute of Limitations in the Civil subjects shall conclude contracts in accordance
Code of the People's Republic of China, Article 9 with the rights and obligations set forth in
18 Comparison and Key Interpretation of Civil Code relevant laws and administrative regulations.22
Provisions, by Du Yueqiu and Sun Zheng, Law Press China,
Beijing 2020 20 Civil Code, Article 648 and Article 656
19 Compared to the Contract Law, 136 articles are add- 21 Civil Code, Article 810
ed, 37 are removed, and 153 are amended. 22 Civil Code, Article 494
200
pursuant to the provisions of the laws and judicial such as purchase and sales contracts, lease
interpretations then in force, but is considered to contracts, loan contracts and transportation
be valid pursuant to the Civil Code, shall apply the contracts provided in the current Contract Law,
relevant provisions in the Civil Code. "16 "A contract the Civil Code adds 4 more typical contracts:
concluded before the implementation of the Civil guarantee contracts, factoring contracts, property
Code, where the party providing the standard service contracts and partnership contracts. We
terms fails to perform the obligation of reminder shall discuss these contracts after we deal with
or explanation, which involves the determination the mandatory contract system, the preliminary
of the validity of the standard terms, shall apply contract system and the standard clause system.
the Civil Code, Article 469."17
a. Mandatory Contract System
B. Overview of the Civil Code
The mandatory contract system primarily aims
The Civil Code consists of 7 chapters and 1260 to protect the interests of disadvantaged groups.
articles, divided into general provisions, property However, since the mandatory contract system
rights, contracts, personality rights, marriage violates the principle of freedom of contract, the
and family, inheritance, tort liability, and by-laws, use of such system must be subject to limiting
with totally over 106,600 words. The Civil Code conditions specified by laws and regulations.
includes basic principles binding civil activities, civil Therefore, it provides that a party obliged to make
subjects, guardianship, civil authorities, civil legal an offer under laws and administrative regulations
acts and agency, civil responsibility, statutes of shall, in a timely manner, make a reasonable offer.
limitation, property rights, contracts, guarantees, A party obliged to accept an offer under laws
protection of personality rights, marriage and and administrative regulations shall not reject a
family, adoption, inheritance and tort liability, etc. reasonable offer from the other party.
We shall initially discuss selected new provisions Parties are obliged to enter into contracts in
of law that have been added to the Civil Code, two main circumstances:
beyond the provisions of the nine laws that were
incorporated into the Civil Code.18 i. that such party is a public service company
with obligations of mandatory contract. In order
C. Innovation of Specific Systems to ensure people’s basic living requirements, this
chapter of contract provides that the suppliers
1. Contracts of electricity, water, gas and heat to the public
shall not reject a user's reasonable request for
There are 526 articles in the chapter on contracting.20 An article regarding transportation
contracts in the Civil Code19. In the general contracts states that a carrier engaged in public
provisions, the Civil Code has added the mandatory transportation shall not refuse the normal and
contract system, the preliminary contract system reasonable carriage request of a passenger or
and the standard clause system, while in specific consignor;21 and
provisions, in addition to the 15 typical contracts,
ii. that such party has a mandatory obligation
16 Several Provisions of the Supreme People's Court on to enter into a contract to undertake national
the Application of the Statute of Limitations in the Civil orders. When the State issues national orders and
Code of the People's Republic of China, Article 8 directive tasks in an emergency for disaster relief,
17 Several Provisions of the Supreme People's Court on epidemic prevention and control, the relevant civil
the Application of the Statute of Limitations in the Civil subjects shall conclude contracts in accordance
Code of the People's Republic of China, Article 9 with the rights and obligations set forth in
18 Comparison and Key Interpretation of Civil Code relevant laws and administrative regulations.22
Provisions, by Du Yueqiu and Sun Zheng, Law Press China,
Beijing 2020 20 Civil Code, Article 648 and Article 656
19 Compared to the Contract Law, 136 articles are add- 21 Civil Code, Article 810
ed, 37 are removed, and 153 are amended. 22 Civil Code, Article 494
200
