China does not have a single civil code, but rather has several civil acts. Contract Law of the People`s Republic of China of 1999(Contract Law of China) is one of the several civil acts which was drafted by legal scholar, first in the history of legi...
China does not have a single civil code, but rather has several civil acts. Contract Law of the People`s Republic of China of 1999(Contract Law of China) is one of the several civil acts which was drafted by legal scholar, first in the history of legislation, and enacted in reference to foreign legal systems. Contract law of China accepted the advanced principles, being enacted in reference to foreign legal system and international convention, such as United Nations Convention on Contracts for International Sale of Goods, PICC and German Civil Law. Among this Contract Law of 23 chapters, chapter 7 is the title Liability for Breach of Contract, which has 16 articles. Liability for breach of contract is an important issue in Contract Law of China. Under the Law, it is strict liability in principle but also includes the concept of warranty liability. The basic remedies for the breach are specific performance, damages, termination of the contract, cure for non-conforming performance and price reduction. The scope of damages is limited to the damage that the debtor foresaw or should have foreseen at the time of the conclusion of the contract and termination of the contract does not require fault of the contracting party.