Foreigners Need to Know in China - Rebus Sic Stantibus

 涉外律师 Peter Peng      2023-03-28

 

As a foreigner or foreign enterprise in China, you may have the doubt about the effectiveness of the contract after its formation, especially when the market is variable and diversified.

Technically speaking, whether a contract could be rectified or rescinded upon the request of sole party? Let’s find the answer from the interpretation of the Principle of Rebus Sic Stantibus or Frustration of Purpose.

 

无论外国人还是其他外国商事主体，在日常的市场经营活动中或许都会对合同效力问题产生如下疑问：合同什么时间生效；合同生效后，在各方当事人不能达成一致的情况下，是否可以单方面要求对合同进行修改或撤销？是否需要聘请中国涉外律师？为回答上述问题，我们特此阐述民法典中规定的情势变更原则。

 

According to the Civil Code of the People’s Republic of China, unless otherwise provided by law or agreed by the parties, a contract shall become effective upon its formation.

However，the contract could be amended or even rescinded under some special circumstances.

The principle of Frustration of Purpose or Rebus Sic Stantibus has been stipulated by the civil law of China. Specifically speaking, it should be applied under strictly situations. i.e. After the conclusion of the contract, the fundamental condition upon the signing of the contract has been significantly changed, which is unforeseeable and not belong to the commercial risks, then the affected party is entitled to renegotiate the terms of the contract with the other party, if they could not reach an agreement about the amendments, they could seek for help from the people’s courts or arbitration body to amend or terminate the contract, the latter shall rectify or rescind the contract in accordance with the rule of fairness based on the actual circumstances afterwards.

Last but not the least, when you have any legal problems about the contract issue, and you need to find a local Chinese lawyer, please do not hesitate to contact us via the information blow or moreover seek for help from your embassy.

  

Appendix

the Civil Code of the People’s Republic of China (excerpts)

《中华人民共和国民法典》（节选）

 

第五百零二条  依法成立的合同，自成立时生效，但是法律另有规定或者当事人另有约定的除外。

依照法律、行政法规的规定，合同应当办理批准等手续的，依照其规定。未办理批准等手续影响合同生效的，不影响合同中履行报批等义务条款以及相关条款的效力。应当办理申请批准等手续的当事人未履行义务的，对方可以请求其承担违反该义务的责任。

第五百三十三条  合同成立后，合同的基础条件发生了当事人在订立合同时无法预见的、不属于商业风险的重大变化，继续履行合同对于当事人一方明显不公平的，受不利影响的当事人可以与对方重新协商；在合理期限内协商不成的，当事人可以请求人民法院或者仲裁机构变更或者解除合同。

人民法院或者仲裁机构应当结合案件的实际情况，根据公平原则变更或者解除合同。

涉外律师

Peter Peng

Attorney at Law, LL.M.

盈科律师事务所上海办公室

Yingke Law Firm Shanghai Office

Mobile: +86 139 1608 1358

Email:Lawpeter@163.com

Website: www.lawpeng.com

地址：中华人民共和国上海市静安区裕通路洲际商务中心50层200070

Address: 50 F, InterContinental Business Center, No. 100 Yutong Road, Jing’an District, Shanghai 200070 China. 

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