nts
shall have the effect of amendment of or supplement to the
contract.
@@ Article 17. Contracts in violation of the laws or
detrimental to China's sovereignty or to the public interests of
society shall be null and invalid.
Individual clauses of a contract which are in conflict with laws
shall not affect the effect of contract as a whole ab initium after
such clauses are rescinded or amended by the contracting parties
through consultation.
@@ Article 18. Contracts concluded by means of fraud or under duress,
etc. shall be null and invalid.
@@ Article 19. Invalid contracts shall have no legal binding
force ab initio. However, if only part of a contract is confirmed
null and invalid, which does not affect the effect of the other
parts of the contract, the remaining parts shall then remain valid.
@@ Article 20. After a contract is confirmed invalid, the party
that is responsible for the invalidation shall compensate the other
party for the losses incurred. If both parties have errors, they
shall bear the relevant responsibilities respectively.
@@ Article 21. If contracts which have been established according
to law and have been approved have contents that are in conflict
with the laws promulgated thereafter, the effect of the contracts
shall not be affected unless there are special stipulations in the new
laws and the amended laws.
@@ Article 22. A contract shall contain the following main items:
(1) Names of the competent parties, nationalities, main places of
business or addresses; names, nationalities, main places of business
or addresses of the agents for contracts signed by agents;
(2) Main contents required by different kinds of contracts;
(3) Kinds and scopes of the contract object;
(4) Technical terms, quality, standards, specifications, quantity
of the contract object;
(5) Price terms, amount payable, method of payment and various
additional expenses;
(6) Term, place and method of execution;
(7) Rights and obligations of the parties;
(8) Guaranty and insurance;
(9) Transfer of contracts;
(10) Liabilities for breach of contract;
(11) Ways and procedures of settlement of contract disputes;
(12) Languages used in contracts and their effectiveness;
(13) Date and place of signing the contract and conditions under
which it comes into force;
(14) Other clauses and appendices provided in the contract, and
(15) Other clauses the parties deem necessary.
@@ Article 23. Guaranty for contracts may be in one of the following
forms:
(1) Guaranty by cash deposit or earnest money for fulfilment of
contract,
(2) Guaranty by a bank,
(3) Security by mortgage of property,
(4) Guaranty by a company or an enterprise, or
(5) Other guaranties.
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