A comparison the United States law of contracts with the law of contracts of the People's Republic of China.
A comparison the United States law of contracts with the law of contracts of the People's Republic of China.
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Under Chinese law, it is permissible to provide that the governing language of the contract is a foreign language such as English. To do so, however, nearly always leads to disaster. Chinese courts will only work with Chinese language documents. This means the contract must be translated into Chinese.
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.
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.
An agreement written in a foreign language may indeed be enforced in US courts. The only difference is that unless the finder of fact (judge or jury) is fluent in the language in which the contract is written, the document must be translated and...
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.
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.
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).