This article was first published in Asian Counsels country
files, www.pbpress.com
A discussion of issues such as formation, validity,
performance, termination and damages
On 24 April 2009, the PRC Supreme Court issued the Second
Judicial Explanation on the PRC Contract Law ("Second Judicial
Explanation"). This Second Judicial Explanation treats
contract law issues that were not covered or remained unclear in
the existing legislation and the first judicial explanation.
1. Formation of a contract
Article 1 of the Second Judicial Explanation clarifies the
existence of three indispensable elements for formation of a
contract: contract parties, contract object and quantity. Failure
to agree on other matters should "generally" not impair
formation of a contract, unless the law otherwise provides or the
parties otherwise agree upon.
