A comparison the United States law of contracts with the law of contracts of the People's Republic of China.
West Virginia Comparison of Contract Law of the People's Republic of China with The United States
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FAQ
Enforceability isn't built into every contract, even those that are standardized and written in complex legal language. Even if every term and provision has been listed out and agreed upon, a written contract may still not be enforceable in a court of law.
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.
1. The contract is governed by Chinese law. Under Chinese law, it is permissible to provide that the contract be governed by foreign law. However, providing for foreign law all but guarantees failure in a Chinese court because Chinese courts require the party to prove every relevant element of foreign law.
Article 2 For the purpose of this Law, a contract means an agreement on the establishment, alteration or termination of a civil right-obligation relationship between natural persons, legal persons or other organizations as subjects with equal status.
Contractual agreements had always been used as evidence to resolve proprietary disputes involving sale of land or buildings, rentals, and agricultural tenancies. However, due to the lack of a set of uniform rules over contracts, the enforceability of a contract varied across socioeconomic environments.
The contract should be enforceable in a Chinese court with jurisdiction over the defendant. This normally means jurisdiction in a court in the district where the defendant has its principal place of business.
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.
Since international business by its nature involves multiple layers of law, contracts that would be perfectly legal in one country may be illegal in another and unenforceable in that country's courts.
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).