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Economic Contract Law of the People’s Republic of China

 

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Chapter ¢ñ¡¡General Provisions

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Article 1 This Law is formulated with a view to safeguarding the sound development of the socialist market economy, protecting the lawful rights and interests of the parties to economic contracts, maintaining the socio-economic order and promoting the progress of the socialist modernization drive.

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Article 2 This Law shall be applicable to contracts entered into between civil subjects of equal footing, that is, between legal persons or other economic organizations or self-employed industrial and commercial households or leaseholding farm households for the purpose of realizing certain economic goals and defining the rights and obligations of the parties.

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Article 3 Economic contracts, except for those in which accounts are settled immediately, shall be in written form. Documents, telegrams and charts that relate to the modification of a contract and that are agreed upon by the parties through consultation shall also be integral parts of the contract.

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Article 4 In concluding an economic contract, the parties must comply with the laws, administrative rules and regulations. No unit or individual may make use of a contract to engage in illegal activities, disrupt the socio-economic order, damage the interests of the State or the public interest, and seek illegal incomes.

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Article 5 In concluding an economic contract, the parties must follow the principles of equality and mutual benefit and agreement through consultation. No party may impose its own will on the other party, and no unit or individual may illegally interfere.

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Article 6 As soon as an economic contract is established in accordance with the law, it shall have legally binding force, and the parties must fully perform their obligations as stipulated in the contract. Neither party may unilaterally modify or rescind the contract.

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Article 7 The following economic contracts shall be void:

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(1) contracts violating the law, administrative rules and regulations;

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(2) contracts signed through the use of fraud, coercion or similar means;

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(3) contracts signed by an agent beyond the scope of his power of agency, or contracts signed by an agent in the name of his principal with himself or with another person whom he represents; and

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(4) economic contracts violating the interests of the State or the public interest.

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Economic contracts that are void from the time they are concluded shall have no legally binding force. If a part of an economic contract is confirmed to be void, without affecting the validity of the remainder, the remainder shall still be valid.

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The voidness of an economic contract shall be confirmed by the people’s courts or the arbitration agencies.

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Article 8 The provisions of this Law shall, except as otherwise provided in the laws, apply to all contracts for purchase and sale, construction projects, processing transportation of goods, supply and use of electricity, warehousing, lease of property, loans and property insurance and other economic contracts.

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Chapter ¢ò The Conclusion and Performanceof Economic Contracts

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Article 9 An economic contract is established once both parties have, in accordance with the law, reached agreement through consultation on the principal clauses of the contract.

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Article 10 hen an economic contract is to be concluded through an agent, the agent must first obtain a proxy in writing from the principal and sign the contract in the name of the principal within the scope of his power of agency, before the contract directly gives rise to rights and obligations on the part of the principal.

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Article 11 In case the State issues a mandatory plan to enterprises according to needs, relevant enterprises shall conclude contracts between them in accordance with their rights and duties as stipulated by laws and administrative rules and regulations.

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Article 12 An economic contract shall contain the following principal clauses:

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(1) the object ( referring to goods, labour services, construction projects, ect. ) ;

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(2) the quantity and quality;

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(3) the price or remuneration;

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(4) the time limit, place and method of performance; and

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(5) the liability for breach of contract.

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An economic contract shall also include as its principal clauses those whose inclusion is stipulated by law or by virtue of the nature of the economic contract, or whose inclusion is considered as indispensable by either party to the contract.

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Article 13 Where the obligations under an economic contract are to be fulfilled in monetary terms, except as otherwise provided by laws or administrative rules and regulations, Renminbi must be used for computation and payment.

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Except for cases in which the State permits the use of cash to fulfil obligations, settlements must be made by means of transfer of bank accounts or bills.

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Article 14 One party may pay a deposit to the other party. After the economic contract is performed, the deposit shall be returned or set off against the price.

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If the party that pays the deposit fails to perform the contract, it shall have no right to reclaim the deposit. If the party that receives the deposit fails to perform the contract, it shall return twice the amount of the deposit.

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Article 15 If one party to an economic contract requests a guaranty, such guaranty may be provided by a guarantor. Where the guaranteed party fails to perform the contract, the guarantor shall perform or be held with joint obligation in accordance with the agreement on the guaranty.

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Article 16 After an economic contract has been confirmed to be void, the parties shall return to each other any property that they have acquired pursuant to the contract. If one party is at fault, it shall compensate the other party for losses incurred as a result thereof. If both parties are at fault, each party shall be commensurately liable.

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In the case of an economic contract which violates the interest of the State and the public interest, if both parties have acted wilfully, the property that they have acquired or are due to acquire by mutual agreement shall be recovered and turned over to the State Treasury.

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If only one party has acted wilfully, the wilful party shall restore to the other party the property it has acquired from the latter; the party that has not acted wilfully shall turn over to the State Treasury and property it has acquired from the other party or is due to acquire by mutual agreement.

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Article 17 The terms reguarding the quantity, quality, packaging quality and prices of products and the time limit for their delivery in purchase and sale contracts ( including contracts for supply, procurement, forward purchase, combination and coordination in purchases and sales, and adjustment ) shall be implemented in accordance with the following provisions:

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(1) The product quantity term shall be concluded between the supplying and purchasing parties through consultation. The method of measuring product quantity shall be governed by the provisions of the State; in the absence of such provisions, a method agreed upon by the supplying and purchasing parties shall be applied.

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(2) The product quality and packaging quality requirements terms shall be concluded in accordance with the standard which may not be lower than the State mandatory standards or the trade mandatory standards if such standards exist; in the absence of such standards, the terms shall be concluded between the parties through consultation.

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The supplying party must be responsible for the product quality and packaging quality and provide the technical data or samples necessary for inspection.

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The methods of ascertaining product quality through inspection and quarantine shall be carried out in accordance with the relevant provisions approved by the State Council; in the absence of such provisions, the parties shall determine the methods through consultation.

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(3) The product price term shall, except where the State provides that the State-fixed prices must be followed, be determined by the parties through consultation.

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In cases where a product is to be supplied on the basis of the State-fixed price, if the said price is readjusted before the time limit for delivery as provided in the contract, the payment shall be calculated according to the price at the time of delivery. If the delivery is delayed and the price has risen, the original price shall be adopted; if the price has dropped, the new price shall be adopted. In the event of delay in taking delivery of goods or late payment, if the price has risen, the new price shall be adopted; if the price has dropped, the original price shall be adopted.

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(4) The time limit for delivery ( or taking delivery ) of the goods shall be carried out in accordance with the stipulations in the contract. If any party requests advancement or extension of the time limit for delivery ( or taking delivery ) of the goods, it shall reach an agreement with the other party beforehand, and implement it accordingly.

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Article 18 In contracting for construction projects, including survey, design, building and installation, one general contractor may sign a general contract with the construction client, or several contractors may separately sign contracts with the construction client.

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Contracts for major construction projects of the State shall be concluded in accordance with procedures prescribed by the State and investment plans, planned project descriptions and other documents approved by the State.

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Survey and design contracts shall provide the time for delivery of the basic survey or design data and design documents ( including an estimated budget ) by both parties, the quality requirements of the design, other conditions for coordination and other similar provisions.

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Building and installation contracts shall expressly provide the scope of the project, the construction work period, the time for beginning and completing intermediate construction projects, the quality of the work, the costs of construction, the time for delivery of technical data, the responsibilities for the supply of materials and equipment, the allocations of funds and settlement of accounts, the inspection and acceptance of the projects upon completion, the mutual cooperation by the parties and other similar terms.

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The inspection and acceptance of construction projects upon completion shall be carried out according to the blueprints and written instructions, and to the work testing norms and quality inspection standards issued by the state.

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Article 19 Processing contracts shall be concluded on the basis of the ordering party’s requirements as to the description of goods, the items and quality, and of the contractor’s capacity to process, make to order or repair. Except as otherwise provided in the contract, the contractor must use its own equipment, technology and labour force to complete the principal part of the tasks of processing, making to order and repairing and may not, without the consent of the ordering party, assign the accepted tasks to a third party. The ordering party shall accept the products and articles completed by the contractor and shall pay remuneration therefor.

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The contractor shall promptly inspect the raw and processed materials supplied by the ordering party and, if it discovers that they do not conform to the stipulations of the contract, it shall immediately notify the ordering party to replace them or supply what is lacking. The contractor may not, without permission, replace any raw and processed materials supplied by the ordering party and may not covertly exchange components of articles being repaired, and violators shall be liable for making compensation.

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When the contractor repairs a building or processes a batch of non-standardized articles, it shall accept necessary inspection and supervision by the ordering party, but the latter may not obstruct the contractor’s normal work. The contractor shall strictly comply with the ordering party’s request to keep confidential the duplications, designs translations, tests and inspections of the performance of certain articles, and other tasks contracted for by the contractor.

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If the ordering party does not take delivery of the ordered products within six months of the time limit for taking delivery, the contractor shall have the right to sell the ordered products and shall, after deducting its remuneration and storage fees from the money obtained from such sales, deposit the remainder in a bank in the name of the ordering party.

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Article 20 Contracts for the transportation of goods shall be concluded between the shipper and the carrier through consultation.

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Any contract involving transshipment shall expressly provide the responsibilities of both or all parties and the freight delivery methods.

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If consigned goods, in accordance with stipulations, require packaging, the consignor must package the goods in accordance with the standards prescribed by the State authorities in charge; in the absence of uniform packaging standards, packaging shall be carried out in accordance with the principle of securing the safe transport of the goods, or else the shipper shall have the right to refuse to undertake the shipment.

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Article 21 Contracts for the supply and use of electricity shall be concluded in accordance with the needs of the electricity user and the electrical supply capacity. The contract shall expressly provide the electrical power, the amount of electricity, the period of use of electricity, the liability for breach of contract and other similar terms.

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Article 22 Warehousing contracts shall be concluded through consultation between the parties in accordance with the storing party’s plan for storage on consignment and the warehousing capacity of the safekeeping party.

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The storage of odd-lot goods shall be contracted in accordance with the relevant provisions on storage. Warehousing and safekeeping contracts shall expressly provide the type, specifications and quantity of goods to be stored, and the method of safekeeping, the items to be inspected, the inspection methods, the procedures for depositing and withdrawing the goods from storage, the standards of loss and damage and the handling of loss or damage, the responsibility for expenses and the method of settling accounts, the liability for breach of contract and other similar terms.

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The safekeeping party shall inspect the goods to be put into storage in accordance with the provisions of the contract concerning the packaging exterior and the type, quantity and quality of the goods, and, if it discovers that the goods to be put into storage do not conform to the provisions of the contract, it shall promptly notify the storing party.

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If, after the safekeeping party has inspected the goods, a non-conformity between the type, quantity or quality of the goods and the provisions of the contract occurs, the safekeeping party shall be liable for making compensation.

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The storing party shall provide the safekeeping party with necessary data for inspection of the goods, or else the safekeeping party shall not be liable for making compensation should any non-conformity between the type, quantity or quality of the goods and the provisions of the contract occur.

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Article 23 Contracts for the lease of property shall expressly provide the name, quantity and use of the leased property, the term of the lease, the rent and the time limit for payment of the rent, the responsibility for maintenance and keeping the property in good repair during the term of the lease, the liability for breach of contract and other similar terms.

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The lessor shall, in accordance with the time and standards provided in the contract, turn over the leased property for the use of the lessee. If the lessor transfers the ownership of the property to a third party, the lease contract shall continue to be effective with respect to the new owner of the property.

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The lessee may, because of work requirements, assign the use of the leased property to a third party, but it must first obtain the consent of the lessor.

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The term concerning rent standards shall be concluded in accordance with the State uniform provisions if such provisions exist. In the absence of such provisions, the rent shall be determined through consultation between the parties.

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Article 24 Loan contracts shall be concluded in accordance with relevant provisions of the State Council. The contract shall expressly provide the amount of the loan, the use, the term, the interest rate, the procedures for settling accounts, the liability for breach of contract and other similar terms.

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Article 25 Property insurance contracts shall be concluded after the insurant submits demands for insurance, the insurer agrees to undertake the insurance and an agreement has been reached on the terms of the contract between the two parties.

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The insurer shall issue an insurance policy or other insurance certificates to the insurance without delay.

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An insurance contract shall expressly provide the object of the insurance, the exact location ( or the means of transport and voyage ), the insured amount, the insured liability, the excluded liability, the method of paying compensation and insurance premiums, the beginning and end of the insured term and other similar terms.

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The policy holder shall protect the safety of the insured property. The insurer may conduct safety inspections of the insured property, and, if it discovers unsafe aspects, it shall promptly notify the policy holder to eliminate them.

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When a third person should be responsible for paying compensation for losses with respect to the insured property, if the policy holder submits a claim against the insurer, the insurer may first make compensation in accordance with the provisions of the contract, but the policy holder must assign its right to recover compensation to the insurer and assist him in recovering the compensation from the third person.

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Chapter ¢ó The Modification and Rescission of Economic Contracts

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Article 26 It shall be permissible to modify or rescind an economic contract if any of the following situations occurs:

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(1) if both parties agree through consultation, and if such modification or rescission would not harm the interests of the State and the social public interests;

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(2) if force majeure makes it impossible to perform the entire obligations under the economic contract; or

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(3) if the other party to an economic contract fails to perform the contract within the time limit agreed upon in the contract.

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In case of Item (2) of Item (3) of the preceding paragraph, one party shall have the right to notify the other party of the rescission of the economic contract.

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If one party suffers losses due to modification or rescission of the economic contract, the party that is held responsible, except when it may be exempted from liability according to law, shall be liable for making compensation.

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If one party is merged or divided, the party or parties resulting from the change shall assume or severally assume the obligation to perform the contract and shall enjoy its or their due rights under the contract.

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Article 27 The notice or agreement regarding the modification or rescission of an economic contract shall be in written from ( including a document, a telegram, ect. ).

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Before an agreement is reached, the original economic contract shall continue to be effective, except that force majeure makes it impossible to perform the entire obligations of the economic contract or the other party to the economic contract fails to perform the contract within the time limit agreed upon in the contract.

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Article 28 After an economic contract is concluded, it may not be modified or rescinded due to replacement of the person who has undertaken to conclude the contract or of the legal representative.

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Chapter ¢ô Liability for Breach of Contracts

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Article 29 If, due to the fault of one party, an economic contract cannot be performed or cannot be fully performed, the party at fault shall be liable for breach of the contract; if both parties are at fault, in accordance with the actual conditions, each party shall be commensurately liable for breach of the contract that is due to its fault.

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If an individual is directly responsible for dereliction of duty, malfeasance or other unlawful conduct that gives rise to a major accident or severe losses, he shall be investigated for economic and administrative responsibility, and even criminal responsibility.

µÚÈýÊ®Ìõ µ±ÊÂÈË£­·½ÓÉÓÚ²»¿É¿¹Á¦µÄÔ­Òò²»ÄÜÂÄÐо­¼ÃºÏͬµÄ¡£Ó¦¼°Ê±Ïò¶Ô·½Í¨±¨²»ÄÜÂÄÐлòÕßÐèÒªÑÓÆÚÂÄÐС¢²¿·ÖÂÄÐо­¼ÃºÏͬµÄÀíÓÉÔÚÈ¡µÃÓйØÖ¤Ã÷ÒÔºó£¬ÔÊÐíÑÓÆÚÂÄÐС¢²¿·ÖÂÄÐлò²»ÂÄÐС¢²¢¿É¸ù¾ÝÇé¿ö²¿·ÖÈ«ÁÚÃâÓè³Ðµ£Î¥Ô¼ÔðÈΡ£
Article 30 If a party cannot perform an economic contract due to force majeure, it shall promptly notify the other party of the reason for its inability of performance or for its needs of a defered performance or partial performance of the economic contract. After it has obtained a relevant certificate, it shall be permitted to extend the time for performance, to perform partly or not to perform, and it may, in accordance with the circumstances, be partly or completely exempted from liability for breach of contract.

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Article 31 If a party breaches an economic contract, it shall pay damages for the breach to the other party. If the breach of contract has already caused the other party to suffer losses that exceed the amount of the damages, the breaching party shall make compensation for the amount exceeding the breach of contract damages. If the other party demands continued performance of the contract, the breaching party shall continue to perform.

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Article 32 Breach of contract damages and compensatory damages shall be paid within ten days after liability is clearly established, or else the matter shall be handled as an overdue payment.

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Article 33 Liability for breach of a purchase and sale contract.

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(1) Liability of the supplying party:

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a. If the type, specifications, quantity, quality or packaging of the product does not conform to the provisions of the contract, or if delivery is not made on the date prescribed in the contract, it shall pay breach of contract damages and compensatory damages.

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b. If the goods are sent to the wrong destination or receiving unit ( or individual ), in addition to transporting the goods to the destination or receiving unit ( or individual ) prescribed in the contract, it shall also be liable for paying any extra freight and miscellaneous charges incurred as a result thereof; if the error causes overdue delivery, it shall pay breach of contract damages for overdue delivery.

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(2) Liability of the purchasing party:

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a. If it cancels an order during the contract term, it shall pay breach of contract damages and compensatory damages.

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b. If it fails to make payment or take delivery on the date prescribed in the contract, it shall pay breach of contract damages.

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c. If it erroneously writes out or at the last moment changes the destination of the goods, it shall be liable for any extra expenses incurred as a result thereof.

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Article 34 Liability for breach of a construction project contract.

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1.Liability of the contractor:

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a.If, due to the inferior quality of survey and design work or because survey and design documents are not submitted in time, the work period is prolonged and losses are caused thereby, the survey and design unit shall continue to complete the designs and shall reduce or forfeit its survey and design fees and shall even make compensation for the losses.

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b.If the construction quality does not conform to the stipulations of the contract, the party awarding the contract shall have the right to demand that the project be repaired or remedied and reconstructed within a fixed time and without extra payment, and if such repair or remedy and reconstruction causes overdue delivery of the project, the contractor shall pay breach of contract damages for overdue performance.

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c. If the time the project is delivered does not conform to the stipulations of the contract, the contractor shall pay breach of contract damages for overdue performance.

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(2) Liability of the party awarding the contract:

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a. If the raw and processed materials, equipment, site, funds, technical data, ect., are not supplied according to the time or requirements stipulated in the contract, in addition to accepting a delay in the work deadline, it shall also reimburse the contractor for actual losses from work stoppages and idling of the labour force as a result thereof.

2.¹¤³ÌÖÐ;ͣ½¨¡¢»º½¨£¬Ó¦²ÉÈ¡´ëÊ©ÃÖ²¹»ò¼õÉÙËðʧ£¬Í¬Ê±Åâ³¥³Ð°ü·½Óɴ˶øÔì³ÉµÄÍ£¹¤¡¢Îѹ¤¡¢µ¹ÔË¡¢»úеÉ豸µ÷Ǩ¡¢²ÄÁϺ͹¹¼þ»ýѹµÈËðʧºÍʵ¼Ê·ÑÓá£
b. If construction is stopped or postponed in the course of the work, it shall adopt measures to offset or reduce the losses and at the same time compensate the contractor for losses and actual expenses incurred as a result thereof due to work stoppages, idling of the labour force, changes in transportation, transfers of machinery and equipment, overstocking of materials and components, etc.

3.ÓÉÓÚ±ä¸ü¼Æ»®£¬ÌṩµÄ×ÊÁϲ»×¼È·¡£»òδ°´ÆÚÌṩ±ØÐëµÄ¿±²ì¡¢Éè¼Æ¹¤×÷Ìõ¼þ¶øÔì³É¿±²ì¡¢Éè¼ÆµÄ·µ¹¤¡¢Í£¹¤³ÉÐÞ¸ÄÉè¼Æ£¬°´³Ð°ü·½Êµ¼ÊÏûºÄµÄ¹¤×÷Á¿Ôö¸¶·ÑÓᣠ¡¡¡¡
c. If the plans are modified, the data supplied are not accurate or the conditions for survey and design work are not provided in good time and, as a result thereof, the survey and design work has to be redone or stopped, or the design revised, it shall pay additional expenses for the amount of work actually expended by the contractor.

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d. If problems of quality are discovered in the project it has put into use without having first examined and accepted, it shall be held solely responsible.

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e. If it exceeds the deadline stipulated in the contract for examination and acceptance or for paying the construction fees, it shall pay breach of contract damages for overdue performance.

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Article 35 Liability for breach of a processing contract.

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(1) Liability of the contracting party:

1.ÓÉÓÚ±£¹Ü²»ÉÆ£¬ÖÂʹ¶¨×÷·½ÌṩµÄ²ÄÁϺÍÎïÆ·Ë𻵡¢¶ªÊ§µÄ£¬¸ºÔðÅâ³¥¡£
a. If due to improper storage the materials or articles supplied by the ordering party are damaged, lost or destroyed, it shall be liable for making compensation.

2.δ°´ºÏͬ¹æ¶¨µÄÖÊÁ¿¡¢ÊýÁ¿Íê³É¶¨×÷·½½»¸¶µÄ¹¤×÷,Ó¦ÎÞ³¥½øÐÐÐÞÀí¡¢²¹×ãÊýÁ¿»òÕß×üõ±¨³ê¡£ Èç¹û¹¤×÷³É¹ûÓÐÖØ´óȱÏÝ£¬»¹Ó¦³Ðµ£Åâ³¥ÔðÈΡ£
b. If the quality or quantity of work delivered to the ordering party does not conform to the prescriptions of the contract, it shall, without charge, undertake to make repairs or supplement the quantity or, depending on the circumstances, reduce remuneration. If the results of the work have a serious defect, it shall also be liable for making compensation.

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(2) Liability of the ordering party:

1.δ°´Ê±¡¢°´ÖÊ¡¢°´Á¿Ïò³ÐÀ¿·½Ìṩԭ²ÄÁÏ£¬Ôì³É¹¤×÷ÑÓÆÚµÄ£¬¸ºÔðÅâ³¥Ëðʧ¡£
a. If it does not provide the contracting party with raw and processed materials on time or of the requisite quality or quantity and thereby causes a prolonging of the work period, it shall be liable for making compensation for any losses.

2.³¬¹ý¹æ¶¨ÆÚÏÞÁìÈ¡¶¨×÷»òÐÞÀíµÄÎïÆ·£¬Ó¦Ïò³ÐÀ¿·½¸ø¸¶ÓâÆÚ±£¹Ü·Ñ¡£
b. If it exceeds the deadline stipulated for taking delivery of the articles ordered or repaired, it shall pay a storage fee to the contracting party for the overdue period.

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c. If it exceeds the deadline for making payment stipulated in the contract, it shall pay breach of contract damages for overdue payment.

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Article 36 Liability for breach of a freight transportation contract.

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(1) Liability of the shipper:a. If it fails to arrange for a vehicle ( or ship ) for shipment in accordance with the time or requirements of the transportation contract, it shall pay to the consignor breach of contract damages.

2.»õÎï´íÔ˵½»õµØµã»ò½Ó»õÈË£¬Ó¦ÎÞ³¥ÔËÖÁºÏͬ¹æ¶¨µÄµ½»õµØµã»ò½Ó»õÈË¡£Èç¹û»õÎïÔ˵½ÓâÆÚ£¬³¥¸¶ÓâÆÚ½»»õµÄÎ¥Ô¼½ð¡£
b. If the goods are sent to the wrong destination or receiving person, it shall transport them free of charge to the destination or receiving person stipulated in the contract. If the goods are delivered after the stipulated time, it shall pay breach of contract damages for overdue delivery.

3.ÔËÊä¹ý³ÌÖлõÎﶪʧ¡¢¶ÌÉÙ¡¢±äÖÊ¡¢ÎÛȾ¡¢Ë𻵡¢°´»õÎïʵ¼ÊËðʧ£¨°üÀ¨°ü×°×Ê¡¢ÔËÔÓ·Ñ)Åâ³¥
c. If the goods are lost or destroyed, suffer a shortage, deteriorate or are contaminated or damaged in the course of transportation, it shall pay compensation for the actual loss to the goods ( including packaging expenses and freight and miscellaneous expenses ).

4.ÁªÔ˵ĻõÎï·¢Éú¶ªÊ§¡¢¶ÌÉÙ¡¢±äÖÊ¡¢ÎÛȾ¡¢Ëð»µÓ¦ÓɳÐÔË·½³ÐÏàÅâ³¥ÔðÈεÄ£¬ÓÉÖÕµã½×¶ÎµÄ³ÐÔË·½°´Õչ涨Åâ³¥£¬ÔÙÓÉÖÕµã½×¶ÎµÄ³ÐÔË·½Ïò¸ºÓÐÔðÈÎµÄÆäËû³ÐÔË·½Åâ³¥¡£
d. If destruction, loss, shortage, deterioration or contamination of or damage to the goods for which the shipper is liable for making compensation occurs during through transshipment, the shipper for the fainal stage of transport shall make compensation as stipulated and then the shipper for the final stage may pursue reimbursement from any other responsible shipper.

5.ÔÚ·ûºÏ·¨ÂɺͺϹ涨Ìõ¼þϵÄÔËÊ䣬ÓÉÓÚÏÂÁÐÔ­ÒòÔì³É»õÎﶪʧ¡¢¶ÌÉÙ¡¢±äÖÊ¡¢ÎÛȾ¡¢Ë𻵵Ä£¬³ÐÔË·½²»³Ðµ£Î¥Ô¼ÔðÈΣº
e. If, during transportation that is in conformity with the law and the provisions of the contract, destruction, loss, shortage, deterioration or contamination of or damage to the goods is caused by any of the following reasons, the shipper shall not be held liable for breach of contract:

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(¢¡) force majeure;

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(¢¢) the natural characteristics of the goods;

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(¢£) reasonable loss and damage of the goods; or

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(¢¤) the fault of the consignor or the recipient of the goods.

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(2) Liability of the consignor:

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a. If it does not provide the consigned goods in accordance with the time and requirements stipulated in the contract, it shall pay to the shipper breach of contract damages.

2.ÓÉÓÚÔÚÆÕͨ»õÎïÖмдø¡¢Ä䱨ΣÏÕ»õÎ´í±¨±¿ÖØ»õÎïÖØÁ¿µÈ¶øÕÐÖÂÓþ߶ÏÁÑ¡¢»õÎïˤËð¡¢µõ»úÇã·­¡¢±¬Õ¨¡¢¸¯Ê´µÈʹÊ£¬³Ðµ£Åâ³¥ÔðÈΡ£
b. If it smuggles or conceals dangerous goods among ordinary goods or incorrectly declares the weight of heavy goods, etc., thus causing lifting equipment to break, the goods to be broken or damaged, cranes to be overturned, or an explosion, corrosion or other similar accident to occur, it shall be liable for paying compensation.

3.ÓÉÓÚ»õÎï°üװȱÏݲúÉúÆõËð,ÖÂʹÆäËû»õÎï»òÔËÊ乤¾ß¡¢»úеÉ豸±»ÎÛȾ¸¯Ê´¡¢ Ë𻵣¬Ôì³ÉÈËÉíÉËÍöµÄ£¬³Ðµ£Åâ³¥ÔðÈΡ£
c. If defective packaging produces damage and thus causes other goods or means of transport, machinery or equipment to be contaminated, corroded or damaged or causes human casualties, it shall be liable for paying compensation.

4.ÔÚÍÐÔË·½×¨ÓÃÏß»òÔÚ¸Û¡¢Õ¾¹«ÓÃרÕÅ¡¢×¨ÓÃÌúµÀ×Ô×°µÄ»õÎÔÚµ½Õ¾Ð¶»õʱ£¬·¢ÏÖ»õÎïË𻵡¢¶ÌÉÙ£¬ÔÚ³µÁ¾Ê©·âÍêºÃ»òÎÞÒì×´µÄÇé¿öÏ£¬Ó¦Åâ³¥ÊÕ»õÈ˵ÄËðʧ¡£
d. If the goods have been loaded by the consignor at its own special-purpose loading point or at a public special-purpose loading point at a harbour or station or at a special-purpose railway loading point, and if damage or shortage is found upon checking the goods at the unloading point, in circumstances where the vehicle was perfectly sealed or there are no abnormal conditions, the consignor shall compensate the receiving party for the losses.

5.¹Þ×°·¢ÔË»õÎÒòÎ´Ëæ³µ¸½´ø¹æ¸ñÖÊÁ¿Ö¤Ã÷»ò»¯Ñ鱨¸æ£¬Ôì³ÉÊÕ»õ·½ÎÞ·¨Ð¶»õʱ¡£³¥¸¶³ÐÔË·½Ð¶³µµÈ´æ·Ñ¼°Î¥Ô¼½ð¡£
e. If goods transported in a tank car are not accompanied by the certificate of specifications and quality or the laboratory test report, preventing the recipient of the goods from being able to unload the goods, the consignor shall reimburse the shipper for delayed unloading and storage charges as well as breach of contract damages.

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Article 37 Liability for breach of a contract for the supply and use of electricity.

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(1) Liability of the supplier of electricity:

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The supplier of electricity must supply electricity in a safe manner in accordance with power supply standards stipulated by the State and with the stipulations of the contract. If it has cause to restrict electricity, it shall notify the user in advance. In the absence of a proper reason for restricting the use of electricity or if electricity is cut off due to the fault of the supplier of electricity, it shall compensate the user for the losses caused thereby.

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(2) Liability of the user of electricity:

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The user must use electricity in accordance with the provisions of the contract. If, due to special circumstances, it needs to use more electricity or cannot use electricity at the specified time, it shall notify the supplier in advance. If in the absence of a proper reason for the overload of electricity or for not using electricity at the stipulated time, it shall pay breach of contract damages.

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The liability for breach of a contract for the supply and use of water or of a contract for the supply and use of gas may be handled with reference to the provisions of this Article.

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Article 38 Liability for breach of a warehousing contract.

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(1) Liability of the safekeeping party:

1.»õÎïÔÚ´¢´æÆÚ¼ä¡£ÓÉÓÚ±£¹Ü²»Éƶø·¢Éú»õÎﶪʧ¡¢¶ÌÉÙ¡¢±äÖÊ¡¢ÎÛȾ¡¢Ë𻵵쬏ºÔðÅâ³¥Ëðʧ¡£ÈçÊô°ü×°²»·ûºÏºÏͬ¹æ¶¨»ò³¬¹ýÓÐЧ´¢´æÆÚ¶øÔì³É»õÎïË𻵡¢±äÖʵÄ£¬²»¸ºÅâ³¥ÔðÈΡ£
a. If improper safekeeping during the period of storage of the goods causes destruction, shortage, deterioration or contamination of or damage to the goods, it shall be liable for paying compensation for the losses. If the goods are damaged or deteriorate due to the packaging not conforming to the stipulations of the contract or due to the valid storage period being exceeded, it shall not be liable for paying compensation.

2.¶ÔΣÏÕÎïÆ·ºÍÒ׸¯»õÎ²»°´¹æ¶¨²Ù×÷»òÍ×ÉÆ±£¹Ü£¬Ôì³É»ÙËðµÄ£¬¸ºÔðÅâ³¥Ëðʧ¡£
b. If dangerous articles or perishable goods are not handled according to stipulations or are not carefully stored, and are thereby damaged, it shall be liable for paying compensation for the losses.

3.ÓÉÓÚ±£¹Ü·½µÄÔðÈΣ¬Ôì³ÉÍ˲ֻò²»ÄÜÈë¿âʱ£¬Ó¦°´ºÏͬ¹æ¶¨Åâ³¥´æ»õ·½ÔË×ʺÍÖ§¸¶Î¥Ô¼½ð¡£
c. If the goods are withdrawn from the warehouse or cannot be deposited in storage due to the fault of the safekeeping party, it shall make compensation for the storing party’s transportation expenses and pay breach of contract damages in accordance with the provisions of the contract.

4.Óɱ£¹Ü·½¸ºÔð·¢Ô˵ĻõÎ²»Äܰ´ÆÚ·¢»õ£¬Åâ³¥´æ»õ·½ÓâÆÚ½»»õµÄËðʧ£¬´í·¢µ½»õµØµã£¬³ý°´ºÏͬ¹æ¶¨ÎÞ³¥Ô˵½¹æ¶¨µÄµ½»õµØµãÍ⣬²¢Åâ³¥´æ³¥·½Òò´Ë¶øÔì³ÉµÄʵ¼ÊËðʧ¡£
d. In cases where it is the responsibility of the safekeeping party to transport the goods and it fails to ship them on time, it shall compensate the storing party for losses due to overdue delivery; if it sends them to the wrong destination, in addition to transporting the goods without charge to the destination as stipulated in the contract, it shall also compensate the storing party for the actual losses caused thereby.

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1.Liability of the storing party:

1.Ò×ȼ²ú¡¢Ò×±¬¡¢Óж¾µÈΣÏÕÎïÆ·ºÍÒ׸¯ÎïÆ·£¬±ØÐëÔÚºÏͬÖÐ×¢Ã÷£¬²¢Ìṩ±ØÒªµÄ×ÊÁÏ£¬·ñÔòÔì³É»õÎï»ÙËð»òÈËÉíÉËÍö£¬³Ðµ£Åâ³¥ÔðÈÎÖ±ÖÁÐÌÊÂÔðÈΡ£
a. Flammable, explosive, poisonous and other dangerous articles and perishable articles must be noted in the contract, and the necessary data must be provided. Otherwise, if any damage to goods or human casualties are caused thereby, it shall be liable for paying compensation and may even be subject to criminal liability.

2.³¬Ò鶨´¢´æÁ¿´¢´æ»òÓâÆÚ²»Ìáʱ£¬³ý½»Äɱ£¹Ü·ÑÍ⣬»¹Ó¦³¥¸¶Ô¼½ð¡£
b. If the weight stored exceeds that agreed upon or the goods are not picked up on time, in addition to the payment of storage fees, it shall also pay breach of contract damages.

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Article 39 Liability for breach of a contract for the lease of property.

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1.liability of the lessee:

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a. If improper use and safekeeping of the leased property or failure to maintain and keep it in good repair causes damage to or destruction of the property, it shall be responsible for restoration of the property or payment of compensation.

2.ÉÃ×Ô²ð¸Ä·¿ÎÝ¡¢É豸¡¢»ú¾ßµÈ²Æ²ú£¬¸ºÔðÅâ³¥Óɴ˶øÔì³ÉµÄËðʧ¡£
b. If it dismantles or alters a house, equipment, machine tools or other property without permission, it shall be liable for making compensation for the losses caused thereby.

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c. If it sublets the leased property without permission or carries out illegal activities, the lessor shall have the right to rescind the contract.

4.ÓâÆÚ²»»¹×âÁ޲Ʋú£¬³ý²¹½»×â½ðÍ⣬»¹Ó¦³¥¸¶Î¥Ô¼½ð¡£ ¡¡¡¡
d. If the leased property is not returned at the specified time, in addition to paying the supplemental rent, it shall also pay breach of contract damages.

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2.Liability of the lessor:

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a. If it does not provide the leased property at the time stipulated in the contract, it shall pay breach of contract damages.

2.δ°´ºÏͬ¹æ¶¨ÖÊÁ¿Ìṩ³ö×â²Æ²ú£¬¸ºÔðÅâ³¥Óɴ˶ø¿¿Ôì³ÉµÄËðʧ¡£
b. If it does not provide the leased property in accordance with the quality stipulated in the contract, it shall be liable for paying compensation for the losses caused thereby.

3.δ°´ºÏͬ¹æ¶¨ÌṩÓйØÉ豸¡¢¸½¼þµÈ£¬ÖÂʹ³Ð×â·½²»ÄÜÈçÆÚÕý³£Ê¹Óõ쬳ý°´¹æ¶¨ÈçÊý²¹ÆëÍ⣬»¹Ó¦³¥¸¶Ô¼½ð¡£
c. If it does not supply related equipment, accessories, etc., in accordance with the provisions of the contract and thereby cause the lessee to be unable to make timely and regular use of the leased property, in addition to supplying what is necessary in accordance with stipulations, it shall also pay breach of contract damages.

4.³ö×â´¬²°¡¢³µÁ¾µÈ´óÐ͹¤¾ß£¬ÈçÒò³ö×â·½²Ù×÷²»µ±»ò·þÎñÈËÔ±µÄ¹ýʧ£¬Ôì³É×âÁÞÓâÆÚ£¬°´ºÏͬ»òÓйع涨³¥»¹³Ð×ⷽΥԼ½ð¡£
d. In the leasing of vessels, vehicles and other large-scale instruments, if improper handling by the lessor or the negligence of service personnel causes the period of the lease to be prolonged, it shall pay the lessee breach of contract damages in accordance with the contract or other relevant stipulations.

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Article 39 Liability for breach of a loan contract.

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(1) Liability of the lender:

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If the lender does not make a loan in a timely manner in accordance with the provisions of the contract, it shall pay breach of contract damages.

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(2) Liability of the borrower:

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If the borrower does not repay the loan in accordance with the provisions of the contract, it shall bear the liability for breach of contract and pay the additional interest.

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If the borrower does not utilize the loan granted for policy consideration in accordance with the provisions of the contract, it shall pay additional interest; and the lender shall have the right to recall part or all of the loan ahead of schedule.

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Article 41 Liability for breach of a property insurance contract.

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(1) Liability of the insurer:

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It shall be liable for paying indemnity for the losses caused by an insured accident within the scope of the insured amount.

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The reasonable expenses paid by the policy holder in order to avoid or reduce the losses within the scope of the insured liability by means of rescue, protection, repair or litigation shall be reimbursed in accordance with the provisions of the contract. If it does not indemnify the policy holder in a tmiely manner, it shall be liable for breach or contract.

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(2) Liability of the policy holder:

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If the policy holder conceals the actual circumstances of the insured property, the insurer shall have the right to rescind the contract or shall not be liable for making indemnity.

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If the policy holder discovers dangerous circumstances regarding the insured property and does not adopt measures to eliminate them, it shall be held solely liable for any losses from an accident caused thereby, and the insurer shall not be liable for making indemnity therefor.

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Chapter ¢õ Mediation and Arbitration of¡¡Economic Contract Disputes

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Article 41 If a dispute over an economic contract develops, the parties may settle the dispute through consultation or mediation.

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If the parties are reluctant to settle the dispute through consultation or mediation or they fail in settling the dispute thereby, they may apply to an arbitration agency for arbitration in accordance with the arbitral clause in the contract or in accordance with the written arbitration agreement reached between them subsequently.

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If there is no arbitral clause concluded between the parties in the contract and no written arbitration agreement is reached subsequently, the parties may bring a lawsuit in the people’s court.

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In the case of a decision made after arbitration, the arbitration agency shall issue an arbitration award. And the parties concerned shall enforce such arbitration award. If either party fails to enforce within the time limit the arbitration award made by the arbitration agency, the other party may apply to the people’s court for compulsory enforcement.

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Article 42 The term for application for arbitration of disputes over an economic contract shall be two years, which shall be counted from the date the party knows or should have known of the infringement of its rights.

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Chapter ¢ö¡¡Administration of Economic Contracts

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Article 43 Administrative departments for industry and commerce of the people’s governments at or above the county level and other competent departments shall, in accordance with their respective functions and duties stipulated by the laws, administrative rules and regulations, be responsible for the supervision over the performance of economic contracts.

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Article 44 Anyone who takes advantage of an economic contract to engage in illegal acts impairing the interests of the State and the social public interests shall be dealt with by the administrative departments for industry and commerce of the people’s governments at or above the county level and other relevant competent departments in accordance with their respective functions and duties as stipulated by the laws, administrative rules and regulations. If such an act constitutes a crime, the offender shall be investigated for criminal liability according to law.

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