John Findley Blog

Important contract law developments in China are explained here.

Here’s a summary:
China’s Supreme Court continues to refine legal procedures.  The “Interpretation of the Supreme People's Court on Issues Concerning the Application of Law for Hearing Cases of Sale and Purchase Contract Related Disputes” came into effect in July 2012, addressing practical issues that have emerged since the 1999 version of the law.  It provides clarification in sales contracts.

The Interpretation enhances the provisions of the Contract Law and its associated regulations.
 
The Judicial Interpretation also specifies the application of law on detailed legal issues concerning delivery and transfer of ownership, risk shifting, inspection, default liability and other administrative matters.
 
A Beijing law firm (King & Wood Mallesons) in its notes on the Interpretation uses the summary:

1. Recognition of the Validity of a Pre-Contract
2. Confirming the Validity of an Unauthorized Disposition Contract
3. Specifying the Delivery Means for Electronic Information Products
4. Specifying the Rules on Ownership of a Property Sold to Multiple Parties
5. Improving the Rules on Risk Allocation
6. Rules on the Loss of Benefits Receivable from Performance of the Contract
7. Specifying the Regulations on Retention of Title