In: Economics
This Law of contract in capitalist economies is the concept of
freedom of contract is formulated in order to protect the lawful
rights and interests of contract parties, to safeguard both
economic and social order. The Chinese Law of contract follows the
Continental civil law tradition. As per Article 2 of the Contract
Law, a contract is an agreement among natural persons, legal
persons or other organizations as equal parties for the
establishment. As per contract law the contract in China must meet
some basic standards like, the contract is governed by Chinese law,
the governing language must be Chinese in contract, the place of
litigation must be in the district where the Chinese defendant has
its principle place of business.
According to Article 2 of the Contract Law on marriage and other
personal relationships provides, “A contract in this Law refers to
an agreement among natural persons, legal persons or other
organizations as equal parties for the establishment, modification
of a relationship involving the civil rights and obligations of
such entities.” Contract Law only regulates contractual
relationship relating to personal property as opposed to personal
relationships.
According to contract law the parties shall observe the principles
of honesty and good faith and shall perform their respective
contractual obligations in strict accordance with the agreed
contract. The parties are required to abide by the obligations in
terms of notice, assistance and confidentiality in line with the
nature and objective of the contract and the relevant trade
practices.
As per contract law Contract Law, if the contract for sale of goods
or services is silent on quality specification for the goods or
services, the seller shall not intentionally select and deliver
goods or services that are of inferior quality.