A comparison the United States law of contracts with the law of contracts of the People's Republic of China.
Guam is an organized, unincorporated territory of the United States located in the western Pacific Ocean. It is a small island with a diverse culture, rich history, and a strategic military presence due to its proximity to Asia. As for the comparison of contract law between the People's Republic of China (PRC) and the United States, there are notable differences and similarities that exist in their respective legal systems. Contract law in the PRC is primarily governed by the Contract Law of the People's Republic of China (CL PRC), which was enacted in 1999 and revised in 2017. The CL PRC is a foundational legislation governing contractual relationships and covers aspects such as formation, performance, breach, and termination of contracts. In contrast, contract law in the United States is mainly governed by state laws, with the Uniform Commercial Code (UCC) serving as a uniform framework for commercial transactions in most states. One significant difference between the contract laws of the PRC and the United States is the legal system within which they operate. The PRC follows a civil law system influenced by socialist legal principles, while the United States adheres to a common law system, derived from English law, emphasizing judicial precedent. In terms of contract formation, both legal systems require certain elements, such as the mutual assent of the parties, offer and acceptance, consideration, and legal capacity. However, the PRC contract law places more emphasis on formalities, requiring certain contracts to be in writing or notarized, especially those involving real estate, patents, and copyrights. In the United States, contracts can be oral or written, except for contracts falling within the Statute of Frauds that require written evidence to be enforceable. Another area of variation lies in the remedies available for breach of contract. In the PRC, the principle of autonomy of will govern the parties' right to set damages in the event of a breach. However, the CL PRC provides for a limitation on liquidated damages, stating that they should not exceed the loss caused by the breach. On the other hand, the United States recognizes the freedom of contract in damages provisions, allowing the parties to agree upon reasonable liquidated damages or specify a formula for determining damages. Furthermore, the enforcement and dispute resolution mechanisms differ between the two jurisdictions. In China, contractual disputes are typically adjudicated through local courts with limited options for alternative dispute resolution methods. In contrast, the United States has a well-established judicial system, with state and federal courts providing avenues for litigation, arbitration, and mediation. It is important to note that this description provides a general overview of the contractual differences between the PRC and the United States. Additionally, there may be variations within different states of the United States due to their separate legal systems.
