A comparison the United States law of contracts with the law of contracts of the People's Republic of China.
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Alaska Comparison of Contract Law of the People's Republic of China with The United States
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Agreement to Agree IndicatorsIf the subject matter of the agreement cannot be easily ascertained, the agreement is likely an agreement to agree. If the legality of agreement comes to court, the court will be unlikely to substitute or insert terms into the agreement to make it legally binding.
In order for a contract to be enforceable in China, the contract should generally either provide for dispute resolution before a Chinese court, or by arbitration. Arbitration is a private, alternative form of dispute resolution.
A contract is enforceable if a court is willing to obligate both parties to carry out the terms of the agreement. Courts deem contracts enforceable if the terms are willingly agreed to by the parties and something of value is exchanged between the parties.
Contract Formation Chinese LawChinese law recognises the formation of a contract by email, fax, letter, or any other form that "can tangibly express the content thereof" ("67095f625730886873b062408f7d51855bb9") (see Article 469 of the Civil Code of the People's Republic of China, which entered into force on 1 January 2021).
The basic elements required for the agreement to be a legally enforceable contract are: mutual assent, expressed by a valid offer and acceptance; adequate consideration; capacity; and legality.
5 Elements of a Legally Binding ContractThe Offer.Acceptance.Consideration.Mutuality of Obligation.Competency and Capacity.Other Considerations.Types of Contracts.Why Are Contracts Necessary?
In order for the rule to be effective, the contract in question must first be a final integrated writing; it must, in the judgment of the court, be the final agreement between the parties (as opposed to a mere draft, for example).
The first Chinese law to carry the title "code" since the founding of the People's Republic of China in 1949, the Civil Code is expected to comprehensively strengthen the protection of people's various rights and improve the Chinese socialist system of laws.
An agreement to agree occurs where parties decide that certain commercial arrangements should be decided at a later date. For example, this may include the amount of rent paid in a commercial lease or the number of goods a distributor must purchase from a supplier.
In order for a business contract to be legal and enforceable, the two parties must provide genuine consent. This means that there can be no pressure, duress, or undue influence brought to bear on either party to a contract.
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