AdoptedandPromulgatedbytheSecondSessionoftheNinthNationalPeople'sCongressonMarch15,1999.

Translated&CompiledbyJohnJiang&HenryLiuGENERALPRINCIPLESChapterOne:GeneralProvisionsArticle1PurposeThisLawisformulatedinordertoprotectthelawfulrightsandinterestsofcontractparties,tosafeguardsocialandeconomicorder,andtopromotesocialistmodernization.

Article2DefinitionofContract;ExclusionsForpurposesofthisLaw,acontractisanagreementbetweennaturalpersons,legalpersonsorotherorganizationswithequalstanding,forthepurposeofestablishing,altering,ordischargingarelationshipofcivilrightsandobligations.

Anagreementconcerninganypersonalrelationshipsuchasmarriage,adoption,guardianship,etc.shallbegovernedbyotherapplicablelaws.

Article3EqualStandingofPartiesContractpartiesenjoyequallegalstandingandneitherpartymayimposeitswillontheotherparty.

Article4RighttoEnterintoContractVoluntarilyApartyisentitledtoenterintoacontractvoluntarilyunderthelaw,andnoentityorindividualmayunlawfullyinterferewithsuchright.

Article5FairnessThepartiesshallabidebytheprincipleoffairnessinprescribingtheirrespectiverightsandobligations.

Article6GoodFaithThepartiesshallabidebytheprincipleofgoodfaithinexercisingtheirrightsandperformingtheirobligations.

Article7LegalityInconcludingorperformingacontract,thepartiesshallabidebytherelevantlawsandadministrativeregulations,aswellasobservesocialethics,andmaynotdisruptsocialandeconomicorderorharmthepublicinterests.

Article8BindingEffect;LegalProtectionAlawfullyformedcontractislegallybindingontheparties.Thepartiesshallperformtheirrespectiveobligationsinaccordancewiththecontract,andneitherpartymayarbitrarilyamendorterminatethecontract.

Alawfullyformedcontractisprotectedbylaw.

ChapterTwo:FormationofContractsArticle9Capacity;ContractthroughAgentInenteringintoacontract,thepartiesshallhavetheappropriatecapacitiesforcivilrightsandcivilacts.

Apartymayappointanagenttoenterintoacontractonitsbehalfunderthelaw.

Article10FormsofContract;WritingRequirementAcontractmaybemadeinawriting,inanoralconversation,aswellasinanyotherform.

Acontractshallbeinwritingifarelevantlaworadministrativeregulationsorequires.

Acontractshallbeinwritingifthepartieshavesoagreed.

Article11DefinitionofWritingAwritingmeansamemorandumofcontract,letterorelectronicmessage(includingtelegram,telex,facsimile,electronicdataexchangeandelectronicmail),etc.whichiscapableofexpressingitscontentsinatangibleform.

Article12TermsofContractThetermsofacontractshallbeprescribedbytheparties,andgenerallyincludethefollowing:

namesofthepartiesandthedomicilesthereof;subjectmatter;quantity;quality;priceorremuneration;time,placeandmethodofperformance;liabilitiesforbreachofcontract;methodofdisputeresolution.

Thepartiesmayenterintoacontractbyreferencingamodelcontractfortherelevantcontractcategory.

Article13Offer-AcceptanceAcontractisconcludedbytheexchangeofanofferandanacceptance.

Article14DefinitionofOfferAnofferisaparty'smanifestationofintentiontoenterintoacontractwiththe(party,whichshallcomplywiththefollowing:

Itstermsarespecificanddefinite;Itindicatesthatuponacceptancebytheofferee,theofferorwillbeboundthe:Article15InvitationtoOfferAninvitationtoofferisaparty'sioianiffeinaentiontoinvitetheotherpartytomakeanofferthereto.Adeliveredpricelist,announcementofauction,callfortenprospectus,orcommercialadvertisement,etc.isaninvitationtooffer.

Acommercialadvertisementisdeemedanofferifitscontentsmeettherequirementsofanoffer.

Article16EffectivenessofOffer,OfferthroughElectronicMessageAnofferbecomeseffectivewhenitreachestheofferee.

Whenacontractisconcludedbytheexchangeofelectronicmessages,iftherecipienofanelectronicmessagehasdesignatedaspecificsystemtoreceiveit,thetimewhtheelectronicmessageentersintosuchspecificsystemisdeemeditstimeofarrivanospecificsystemhasbeendesignated,thetimewhentheelectronicmessagefirstentersintoanyoftherecipient'ssystemsisdeemeditstimeofarrival.

Article17WithdrawalofOfferAnoffermaybewithdrawn.Thenoticeofwithdrawalshallreachtheoffereebeforeoratthesametimeastheoffer.

Article18RevocationofOfferAnoffermayberevoked.Thenoticeofrevocationshallreachtheoffereebeforeithasdispatchedanoticeofacceptance.

Article19IrrevocableOfferAnoffermaynotberevoked:

ifitexpresslyindicates,whetherbystatingafixedtimeforacceptanceorotherwise,thatitisirrevocable;iftheoffereehasreasontoregardtheofferasirrevocable,andhasundertakepreparationforperformance.

Article20ExtinguishmentofOfferAnofferisextinguishedinanyofthefollowingcircumstances:

Thenoticeofrejectionreachestheofferor;Theofferorlawfullyrevokestheoffer;Theoffereefailstodispatchitsacceptanceattheendoftheperiodforacceptance;Theoffereemakesamaterialchangetothetermsoftheoffer.

Article21DefinitionofAcceptanceAnacceptanceistheofferee‘smanifestationofintentiontoassenttoanoffer.

Article22ModeofAcceptance;AcceptancebyConductAnacceptanceshallbemanifestedbynotification,exceptwhereitmaybemanifestedbyconductinaccordancewiththerelevantusageorasindicatedintheoffer.

Article23TimelyDispatchofAcceptanceAnacceptanceshallreachtheofferorwithintheperiodprescribedintheoffer.

Wheretheofferdoesnotprescribeaperiodforacceptance,theacceptanceshallreachtheofferorasfollows:

Wheretheofferismadeorally,theacceptanceshallbedispatchedimmediately,unlessotherwiseagreedbytheparties;Wheretheofferismadeinanon-oralmanner,theacceptanceshallreachtheofferorwithinareasonabletime.

Article24CommencementofthePeriodforAcceptanceWhereanofferismadebyaletteroratelegram,theperiodforacceptancecommencesonthedateshownontheletterorthedateonwhichthetelegramishandedinfordispatch.Iftheletterdoesnotspecifyadate,theperiodcommencesonthepostingdatestampedontheenvelop.Wheretheofferismadethroughaninstantaneouscommunicationdevicesuchastelephoneorfacsimile,etc.,theperiodforacceptancecommencesoncetheofferreachestheofferee.

Article25ContractFormeduponEffectivenessofAcceptanceAcontractisformedoncetheacceptancebecomeseffective.Article26EffectivenessofAcceptanceAnoticeofacceptancebecomeseffectiveonceitreachestheofferor.Wheretheacceptancedoesnotrequirenotification,itbecomeseffectiveonceanactofacceptanceisperformedinaccordancewiththerelevantusageorasrequiredbytheoffer.

Whereacontractisconcludedbytheexchangeofelectronicmessages,thetimeofarrivaloftheacceptanceshallbegovernedbyParagraph2ofArticle16hereof.Article27WithdrawalofAcceptanceAnacceptancemaybewithdrawn.Thenoticeofwithdrawalshallreachtheofferorbeforeoratthesametimeastheacceptance.

Article28LateAcceptanceAnacceptancedispatchedbytheoffereeafterexpirationoftheperiodforacceptanceconstitutesanewoffer,unlesstheofferortimelyadvisestheoffereethattheacceptanceisvalid.

Article29DelayedTransmissionofAcceptanceIftheoffereedispatcheditsacceptancewithintheperiodforacceptance,andtheacceptance,whichwouldotherwisehavereachedtheofferorinduetimeundernormalcircumstances,reachestheofferorafterexpirationoftheperiodforacceptanceduetoanyotherreason,theacceptanceisvalid,unlesstheofferortimelyadvisestheoffereethattheacceptancehasbeenrejectedongroundsofthedelay.

Article30AcceptanceContainingMaterialChangeThetermsoftheacceptanceshallbeidenticaltothoseoftheoffer.Apurportedacceptancedispatchedbytheoffereewhichmateriallyaltersthetermsoftheofferconstitutesanewoffer.Achangeinthesubjectmatter,quantity,quality,priceorremuneration,time,placeandmethodofperformance,liabilitiesforbreachofcontractormethodofdisputeresolutionisamaterialchangetothetermsoftheoffer.Article31AcceptanceContainingNon-materialChangesAnacceptancecontainingnonmaterialchangestothetermsoftheofferisneverthelessvalidandthetermsthereofprevailasthetermsofthecontract,unlesstheofferortimelyobjectstosuchchangesortheofferindicatedthatacceptancemaynotcontainanychangetothetermsthereof.

Article32TimeofFormationinCaseofMemorandumofContractWherethepartiesenterintoacontractbyamemorandumofcontract,thecontractisformedwhenitissignedorsealedbytheparties.

Article33TimeofFormationinCaseofLettersorElectronicMessages;ConfirmationLetterWherethepartiesenterintoacontractbytheexchangeoflettersorelectronicmessages,onepartymayrequireexecutionofaconfirmationletterbeforethecontractisformed.Thecontractisformeduponexecutionoftheconfirmationletter.

Article34PlaceofFormation;ElectronicMessagesTheplacewheretheacceptancebecomeseffectiveistheplaceofformationofacontract.

Whereacontractisconcludedbytheexchangeofelectronicmessages,therecipientmainplaceofbusinessistheplaceofformationofthecontract;iftherecipientdoesnothaveamainplaceofbusiness,itshabitualresidenceistheplaceofformationofthecontract.Ifthepartieshaveagreedotherwise,suchagreementprevails.

Article35PlaceofFormationinCaseofMemorandumofContractWhereacontractisconcludedbyamemorandumofcontract,itsplaceofformationistheplacewherethepartiessignorsealthecontract.

Article36EffectofFailuretoConcludeContractinWritingWhereacontractistobeconcludedbyawritingasrequiredbytherelevantlaworadministrativeregulationorasagreedbytheparties,ifthepartiesfailedtoconcludethecontractinwritingbutonepartyhasperformeditsmainobligationandtheotherpartyhasacceptedtheperformance,thecontractisformed.

Article37EffectofFailuretoSigninCaseofMemorandumofContractWhereacontractistobeconcludedbyamemorandumofcontract,ifpriortosigningorsealingofthecontract,onepartyhasperformeditsmainobligationandtheotherpartyhasacceptedtheperformance,thecontractisformed.

Article38ContractunderStateMandatoryPlanWherethestatehas,inlightofitsrequirements,issuedamandatoryplanorstatepurchaseorder,therelevantlegalpersonsandotherorganizationsshallenterintoacontractbasedontherightsandobligationsofthepartiesprescribedbytherelevantlawsandadministrativeregulations.

Article39StandardTerms;DutytoCallAttentionWhereacontractisconcludedbywayofstandardterms,thepartysupplyingthestandardtermsshallabidebytheprincipleoffairnessinprescribingtherightsandobligationsofthepartiesandshall,inareasonablemanner,calltheotherparty'sattentiontotheprovision(s)wherebysuchparty'sliabilitiesareexcludedorlimited,andshallexplainsuchprovision(s)uponrequestbytheotherparty.

Standardtermsarecontractprovisionswhichwerepreparedinadvancebyapartyforrepeateduse,andwhicharenotnegotiatedwiththeotherpartyinthecourseofconcludingthecontract.

Article40InvalidityofCertainStandardTermsAstandardtermisinvalidifitfallsintoanyofthecircumstancessetforthinArticle52andArticle53hereof,orifitexcludestheliabilitiesofthepartysupplyingsuchterm,increasestheliabilitiesoftheotherparty,ordeprivestheotherpartyofanyofitsmaterialrights.

Article41DisputeConcerningConstructionofStandardTermIncaseofanydisputeconcerningtheconstructionofastandardterm,suchtermshallbeinterpretedinaccordancewithcommonsense.Ifthestandardtermissubjecttotwoormoreinterpretations,itshallbeinterpretedagainstthepartysupplyingit.Ifadiscrepancyexistsbetweenthestandardtermandanon-standardterm,thenon-standardtermprevails.

Article42Pre-contractLiabilitiesWhereinthecourseofconcludingacontract,apartyengagedinanyofthefollowingconducts,therebycausinglosstotheotherparty,itshallbeliablefordamages:

negotiatinginbadfaithunderthepretextofconcludingacontract;intentionallyconcealingamaterialfactrelatingtotheconclusionofthecontractorsupplyingfalseinformation;anyotherconductwhichviolatestheprincipleofgoodfaith.

Article43TradeSecrets;LiabilityforDisclosureorImproperUseApartymaynotdiscloseorimproperlyuseanytradesecretwhichitbecameawareofinthecourseofnegotiatingacontract,regardlessofwhetheracontractisformed.Ifthepartydisclosedorimproperlyusedsuchtradesecret,therebycausinglosstotheotherparty,itshallbeliablefordamages.

ChapterThree:ValidityofContractsArticle44EffectivenessofContractAlawfullyformedcontractbecomeseffectiveuponitsformation.

Whereeffectivenessofacontractissubjecttoanyproceduresuchasapprovalorregistration,etc.asrequiredbyarelevantlaworadministrativeregulation,suchprovisionapplies.

Article45ConditionsPrecedent;ConditionsSubsequent;ImproperImpairmentorFacilitationThepartiesmayprescribethateffectivenessofacontractbesubjecttocertainconditions.Acontractsubjecttoaconditionprecedentbecomeseffectiveoncesuchconditionissatisfied.Acontractsubjecttoaconditionsubsequentisextinguishedoncesuchconditionissatisfied.

Whereinordertofurtheritsowninterests,apartyimproperlyimpairedthesatisfactionofacondition,theconditionisdeemedtohavebeensatisfied;whereapartyimproperlyfacilitatedthesatisfactionofacondition,theconditionisdeemednottohavebeensatisfied.

Article46ContractTermThepartiesmayprescribeatermforacontract.Acontractsubjecttoatimeofcommencementbecomeseffectiveatsuchtime.Acontractsubjecttoatimeofexpirationisextinguishedatsuchtime.

Article47ContractbyPersonwithLimitedCapacityAcontractconcludedbyapersonwithlimitedcapacityforcivilactisvaliduponratificationbythelegalagentthereof,providedthatacontractfromwhichsuchpersonaccruesbenefitsonlyortheconclusionofwhichisappropriateforhisage,intelligenceormentalhealthdoesnotrequireratificationbyhislegalagent.

Theotherpartymaydemandthatthelegalagentratifythecontractwithinonemonth.Ifthelegalagentfailstomanifesthisintention,heisdeemedtohavedeclinedtoratifythecontract.Priortoratificationofthecontract,theotherpartyingoodfaithisentitledtocancelthecontract.Cancellationshallbeeffectedbynotification.

Article48ContractbyUnauthorizedAgentAbsentratificationbytheprincipal,acontractconcludedonhisbehalfbyapersonwholackedagencyauthority,whoactedbeyondhisagencyauthorityorwhoseagencyauthoritywasextinguishedisnotbindingupontheprincipalunlessratifiedbyhim,andthepersonperformingsuchactisliable.

Theotherpartymaydemandthattheprincipalratifythecontractwithinonemonth.Wheretheprincipalfailstomanifesthisintention,heisdeemedtohavedeclinedtoratifythecontract.Priortoratificationofthecontract,theotherpartyingoodfaithisentitledtocancelthecontract.Cancellationshallbeeffectedbynotification.

Article49ContractbyPersonwithApparentAgencyAuthorityWherethepersonlackingagencyauthority,actingbeyondhisagencyauthority,orwhoseagencyauthoritywasextinguishedconcludedacontractinthenameoftheprincipal,ifitwasreasonablefortheotherpartytobelievethatthepersonperformingtheacthadagencyauthority,suchactofagencyisvalid.

Article50ContractExecutedbyLegalRepresentativeWherethelegalrepresentativeortheperson-in-chargeofalegalpersonoranorganizationofanyothernatureenteredintoacontractactingbeyondhisscopeofauthority,unlesstheotherpartykneworshouldhaveknownthathewasactingbeyondhisscopeofauthority,suchactofrepresentationisvalid.

Article51UnauthorizedDisposalofPropertythroughContractWhereapieceofpropertybelongingtoanotherpersonwasdisposedofbyapersonwithoutthepowertodoso,suchcontractisneverthelessvalidoncethepersonwiththepowertoitsdisposalhasratifiedthecontract,orifthepersonlackingthepowertodisposeofitwhenthecontractwasconcludedhassubsequentlyacquiredsuchpower.Article52InvalidatingCircumstancesAcontractisinvalidinanyofthefollowingcircumstances:

Onepartyinducedconclusionofthecontractthroughfraudorduress,therebyharmingtheinterestsofthestate;Thepartiescolludedinbadfaith,therebyharmingtheinterestsofthestate,thecollectiveoranythirdparty;Thepartiesintendedtoconcealanillegalpurposeundertheguiseofalegitimatetransaction;Thecontractharmspublicinterests;Thecontractviolatesamandatoryprovisionofanylaworadministrativeregulation.

Article53InvalidityofCertainExculpatoryProvisionsThefollowingexculpatoryprovisionsinacontractareinvalid:

excludingoneparty'sliabilityforpersonalinjurycausedtotheotherparty;excludingoneparty'sliabilityforpropertylosscausedtotheotherpartybyitsintentionalmisconductorgrossnegligence.

Article54ContractSubjecttoAmendmentorCancellationEitherofthepartiesmaypetitionthePeople'sCourtoranarbitrationinstitutionforamendmentorcancellationofacontractif:

thecontractwasconcludedduetoamaterialmistake;thecontractwasgrosslyunconscionableatthetimeofitsconclusion.

Ifapartyinducedtheotherpartytoenterintoacontractagainstitstrueintentionbyfraudorduress,orbytakingadvantageoftheotherparty'shardship,theaggrievedpartyisentitledtopetitionthePeople'sCourtoranarbitrationinstitutionforamendmentorcancellationofthecontract.

Whereapartypetitionsforamendmentofthecontract,thePeople'sCourtorarbitrationinstitutionmaynotcancelthecontractinstead.

Article55ExtinguishmentofCancellationRightAparty'scancellationrightisextinguishedinanyofthefollowingcircumstances:

Itfailstoexercisethecancellationrightwithinoneyear,commencingonthedatewhenthepartykneworshouldhaveknownthecauseforthecancellation;Uponbecomingawareofthecauseforcancellation,itwaivesthecancellationrightbyexpressstatementorbyconduct.

Article56EffectofInvalidationorCancellation;PartialInvalidationorCancellationAninvalidorcanceledcontractisnotlegallybindingabinitio.Whereacontractispartiallyinvalid,andthevalidityoftheremainingprovisionsthereofisnotaffectedasaresult,theremainingprovisionsareneverthelessvalid.

Article57IndependenceofDisputeResolutionProvisionTheinvalidation,cancellationordischargeofacontractdoesnotimpairthevalidityofthecontractprovisionconcerningthemethodofdisputeresolution,whichexistsindependentlyinthecontract.

Article58RemediesinCaseofInvalidationorCancellationAfteracontractwasinvalidatedorcanceled,thepartiesshallmakerestitutionofanypropertyacquiredthereunder;whererestitutioninkindisnotpossibleornecessary,allowanceshallbemadeinmoneybasedonthevalueoftheproperty.Thepartyatfaultshallindemnifytheotherpartyforitslosssustainedasaresult.Wherebothpartieswereatfault,thepartiesshallbeartheirrespectiveliabilitiesaccordingly.Article59RemediesinCaseofCollusioninBadFaithWherethepartiescolludedinbadfaith,therebyharmingtheinterestsofthestate,thecollectiveorathirdperson,anypropertyacquiredasaresultshallbeturnedovertothestateorbereturnedtothecollectiveorthethirdperson.

ChapterFour:PerformanceofContractsArticle60FullPerformance;PerformanceinGoodFaithThepartiesshallfullyperformtheirrespectiveobligationsinaccordancewiththecontract.

Thepartiesshallabidebytheprincipleofgoodfaith,andperformobligationssuchasnotification,assistance,andconfidentiality,etc.inlightofthenatureandpurposeofthecontractandinaccordancewiththerelevantusage.

Article61IndeterminateTerms;SupplementaryAgreementIfatermsuchasquality,priceorremuneration,orplaceofperformanceetc.wasnotprescribedorclearlyprescribed,afterthecontracthastakeneffect,thepartiesmaysupplementitthroughagreement;ifthepartiesfailtoreachasupplementaryagreement,suchtermshallbedeterminedinaccordancewiththerelevantprovisionsofthecontractorinaccordancewiththerelevantusage.

Article62GapFillingWherearelevanttermofthecontractwasnotclearlyprescribed,andcannotbedeterminedinaccordancewithArticle61hereof,oneofthefollowingprovisionsapplies:

Ifqualityrequirementwasnotclearlyprescribed,performanceshallbeinaccordancewiththestatestandardorindustrystandard;absentanystateorindustrystandard,performanceshallbeinaccordancewiththecustomarystandardoranyparticularstandardconsistentwiththepurposeofthecontract;Ifpriceorremunerationwasnotclearlyprescribed,performanceshallbeinaccordancewiththeprevailingmarketpriceattheplaceofperformanceatthetimethecontractwasconcluded,andifadoptionofapricemandatedbythegovernmentorbasedongovernmentissuedpricingguidelinesisrequiredbylaw,suchrequirementapplies;Wheretheplaceofperformancewasnotclearlyprescribed,iftheobligationispaymentofmoney,performanceshallbeattheplacewherethepayeeislocated;iftheobligationisdeliveryofimmovableproperty,performanceshallbeattheplacewheretheimmovablepropertyislocated;foranyothersubjectmatter,performanceshallbeattheplacewheretheobligorislocated;Ifthetimeofperformancewasnotclearlyprescribed,theobligormayperform,andtheobligeemayrequireperformance,atanytime,providedthattheotherpartyshallbegiventhetimerequiredforpreparation;Ifthemethodofperformancewasnotclearlyprescribed,performanceshallberenderedinamannerwhichisconducivetorealizingthepurposeofthecontract;Ifthepartyresponsiblefortheexpensesofperformancewasnotclearlyprescribed,theobligorshallbeartheexpenses.

Article63PerformanceatGovernmentMandatedPriceWhereacontractistobeimplementedatapricemandatedbythegovernmentorbasedongovernmentissuedpricingguidelines,ifthegovernmentadjuststhepriceduringtheprescribedperiodofdelivery,thecontractpriceshallbethepriceatthetimeofdelivery.Whereapartydelaysindeliveringthesubjectmatter,theoriginalpriceappliesifthepricehasincreased,andthenewpriceappliesifthepricehasdecreased.Whereapartydelaysintakingdeliveryormakingpayment,thenewpriceappliesifthepricehasincreased,andtheoriginalpriceappliesifthepricehasdecreased.

Article64PerformancetowardaThirdPersonWherethepartiesprescribedthattheobligorrenderperformancetoathirdperson,iftheobligorfailstorenderitsperformancetothethirdperson,orrenderednon-conformingperformance,itshallbeliabletotheobligeeforbreachofcontract.Article65PerformancebyaThirdPersonWherethepartiesprescribedthatathirdpersonrenderperformancetotheobligee,ifthethirdpersonfailstoperformorrenderednon-conformingperformance,theobligorshallbeliabletotheobligeeforbreachofcontract.

Article66SimultaneousPerformanceWherethepartiesoweperformancetowardeachotherandthereisnoorderofperformance,thepartiesshallperformsimultaneously.Priortoperformancebytheotherparty,onepartyisentitledtorejectitsrequirementforperformance.Iftheotherpartyrenderednon-conformingperformance,onepartyisentitledtorejectitscorrespondingrequirementforperformance.

Article67ConsecutivePerformanceWherethepartiesoweperformancetowardeachotherandthereisanorderofperformance,priortoperformancebythepartyrequiredtoperformfirst,thepartywhoistoperformsubsequentlyisentitledtorejectitsrequirementforperformance.Ifthepartyrequiredtoperformfirstrenderednon-conformingperformance,thepartywhoistoperformsubsequentlyisentitledtorejectitscorrespondingrequirementforperformance.

Article68RighttoSuspendPerformanceThepartyrequiredtoperformfirstmaysuspenditsperformanceifithasconclusiveevidenceestablishingthattheotherpartyisinanyofthefollowingcircumstances:

Itsbusinesshasseriouslydeteriorated;Ithasengagedintransferofassetsorwithdrawaloffundsforthepurposeofevadingdebts;Ithaslostitsbusinesscreditworthiness;Itisinanyothercircumstancewhichwillormaycauseittoloseitsabilitytoperform.

Whereapartysuspendsperformancewithoutconclusiveevidence,itshallbeliableforbreachofcontract.

Article69NotificationuponSuspensionofPerformance;TerminationIfapartysuspendsitsperformanceinaccordancewithArticle68hereof,itshalltimelynotifytheotherparty.

Iftheotherpartyprovidesappropriateassuranceforitsperformance,thepartyshallresumeperformance.Afterperformancewassuspended,iftheotherpartyfailstoregainitsabilitytoperformandfailstoprovideappropriateassurancewithinareasonabletime,thesuspendingpartymayterminatethecontract.

Article70DifficultyinRenderingPerformanceDuetoCombinationWhereaftereffectingcombination,division,orchangeofdomicile,theobligeefailedtonotifytheobligor,therebymakingitdifficulttorenderperformance,theobligormaysuspenditsperformanceorplacethesubjectmatterinescrow.

Article71RighttoRejectEarlyPerformance;ExceptionTheobligeemayrejecttheobligor‘searlyperformance,exceptwheresuchearlyperformancedoesnotharmtheobligee‘sinterests.

Anyadditionalexpenseincurredbytheobligeeduetotheobligor'searlyperformanceshallbebornebytheobligor.

Article72RighttoRejectPartialPerformance;ExceptionAnobligeemayrejecttheobligor'spartialperformance,exceptwheresuchpartialperformancedoesnotharmtheobligee'sinterests.

Anyadditionalexpenseincurredbytheobligeeduetotheobligor'spartialperformanceshallbebornebytheobligor.

Article73Subrogation;LimitationWheretheobligordelayedinexercisingitscreditor'srightagainstathirdpersonthatwasdue,therebyharmingtheobligee,theobligeemaypetitionthePeople'sCourtforsubrogation,exceptwheresuchcreditor'srightisexclusivelypersonaltotheobligor.Thescopeofsubrogationislimitedtotheextentoftheobligee'srighttoperformance.Thenecessaryexpensesforsubrogationbytheobligeeshallbebornebytheobligor.Article74Obligee'sRighttoCancelManifestlyUnreasonableActbyObligorWheretheobligorwaiveditscreditor'srightagainstathirdpersonthatwasdueorassigneditspropertywithoutreward,therebyharmingtheobligee,theobligeemaypetitionthePeople'sCourtforcancellationoftheobligor'sact.Wheretheobligorassigneditspropertyatalowpricewhichismanifestlyunreasonable,therebyharmingtheobligee,andtheassigneewasawareofthesituation,theobligeemayalsopetitionthePeople'sCourtforcancellationoftheobligor'sact.

Thescopeofcancellationrightislimitedtotheextentoftheobligee'srighttoperformance.Thenecessaryexpensesfortheobligee'sexerciseofitscancellationrightshallbebornebytheobligor.

Article75TimeLimitforExercisingObligee'sCancellationRightTheobligee‘scancellationrightshallbeexercisedwithinoneyear,commencingonthedatewhenitbecame,orshouldhavebecome,awareofthecauseforcancellation.Suchcancellationrightisextinguishedifnotexercisedwithinfiveyears,commencingonthedateofoccurrenceoftheobligor‘sact.

Article76AParty'sInternalChangeNotExcuseforNonperformanceOnceacontractbecomeseffective,apartymaynotrefusetoperformitsobligationsthereunderongroundsofanychangeinitsnameorchangeofitslegalrepresentative,personincharge,orthepersonhandlingthecontract.

ChapterFive:AmendmentandAssignmentofContractsArticle77Amendment;AmendmentSubjecttoApprovalAcontractmaybeamendedifthepartieshavesoagreed.

Whereamendmenttothecontractissubjecttoanyproceduresuchasapprovalorregistration,etc.asrequiredbyarelevantlaworadministrativeregulation,suchprovisionapplies.

Article78AmbiguousAmendmentNotEffectiveAcontracttermisconstruednottohavebeenamendedifthepartiesfailedtoclearlyprescribethetermsoftheamendment.

Article79AssignmentofRights;ExceptionsTheobligeemayassignitsrightsunderacontractinwholeorinparttoathirdperson,exceptwheresuchassignmentisprohibited:

inlightofthenatureofthecontract;byagreementbetweentheparties;bylaw.

Article80DutytoNotifyWhenAssigningRights;RevocationofAssignmentSubjecttoAssignee'sConsentWheretheobligeeassignsitsrights,itshallnotifytheobligor.Suchassignmentisnotbindingupontheobligorifnoticewasnotgiven.

Anoticeofassignmentofrightsgivenbytheobligeemaynotberevoked,exceptwiththeconsentoftheassignee.

Article81AssumptionofIncidentalRightinCaseofAssignmentWheretheobligeeassignsaright,theassigneeshallassumeanyincidentalrightassociatedwiththeobligee'sright,exceptwheresuchincidentalrightisexclusivelypersonaltotheobligee.

Article82AssignedRightsSubjecttoAccruedDefensesofObligorUponreceiptofthenoticeofassignmentoftheobligee‘sright,theobligormay,inrespectoftheassignee,availitselfofanydefenseithasagainsttheassignor.

Article83AvailabilityofSet-offtoObligorUponreceiptofthenoticeofassignmentoftheobligee‘sright,iftheobligorhasanyrighttoperformancebytheassignorwhichisduebeforeoratthesametimeastheassignedobligee‘sright,theobligormayavailitselfofanyset-offagainsttheassignee.Article84DelegationofObligationsSubjecttoConsentbyObligeeWheretheobligordelegatesitsobligationsunderacontractinwholeorinparttoathirdperson,suchdelegationissubjecttoconsentbytheobligee.

Article85AvailabilityofDefensestoNewObligorWheretheobligorhasdelegatedanobligation,thenewobligormayavailitselfofanyoftheoriginalobligor‘sdefensesagainsttheobligee.

Article86AssumptionofIncidentalObligationinCaseofDelegationWheretheobligordelegatesanobligation,thenewobligorshallassumeanyincidentalobligationassociatedwiththemainobligation,exceptwheresuchincidentalobligationisexclusivelypersonaltotheoriginalobligor.

Article87AssignmentSubjecttoApprovalWheretheobligee‘sassignmentofarightortheobligor‘sdelegationofanobligationissubjecttoanyprocedur