A comparison the United States law of contracts with the law of contracts of the People's Republic of China.
Iowa Comparison of Contract Law of the People's Republic of China with The United States
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Yes, that is correct. Because China is a socialist country, all land is either subject to government ownership or collective ownership. In principle, municipal land is subject to government ownership and land outside cities is subject to collective ownership. However, one can obtain the right to use the land.
China's legal system covers laws at three levels: state laws, administrative regulations and local statutes. The hierarchy of Chinese legislatures: The National People's Congress (NPC) and its Standing Committee: Constitution and Laws. The State Council: Administrative Regulations.
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.
Article 13 of the constitution provided that: "The lawful private property of citizens shall be inviolable. The country shall protect in accordance with law citizens' private property rights and inheritance rights.
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.
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.
After the Chinese Communist Revolution in 1949, most land is owned by collectivities or by the state; the Property Law of the People's Republic of China passed in 2007 codified property rights.
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.
NDA Agreements are Not Enforceable in China. The second fundamental problem with typical NDA agreements is that they are not enforceable in China. Chinese law allows for protecting trade secrets and for contracts that provide NNN protections.
Courts in the PRC do not have a general power of judicial review which enables them to strike down legislation. However under the Administrative Procedure Law of the People's Republic of China, they do have authority to invalidate specific acts of the government.
