Interpretation of the Supreme People's Court on Several Issues Concerning the Application of the General Principles of Contract of the Civil Code of the People's Republic of China

This interpretation is formulated in accordance with the Civil Code of the People's Republic of China, the Civil Procedure Law of the People's Republic of China and other relevant laws and regulations, and in combination with trial practice, in order to correctly hear contract disputes and disputes over creditor's rights and debts not arising from contracts, and protect the legitimate rights and interests of the parties in accordance with the law.

1、 General provisions

Article 1 When interpreting the contract terms in accordance with the provisions of the first paragraph of Article 142 and the first paragraph of Article 466 of the Civil Code, the people's court shall determine the meaning of the disputed terms on the basis of the common meaning of words and sentences, in combination with the relevant terms, the nature and purpose of the contract, customs, and the principle of good faith, with reference to the context of contracting, the process of consultation, performance and other factors.

If there is evidence to prove that the parties have other common understandings of the contract terms different from the common meaning of words and sentences, and one party claims to understand the contract terms according to the common meaning of words and sentences, the people's court will not support it.

If there are two or more interpretations of a contract clause that may affect the validity of the clause, the people's court shall choose an interpretation that is conducive to the validity of the clause; If it is a gratuitous contract, it shall be interpreted as less burdensome to the debtor.

Article 2 Under the following circumstances, if they do not violate the mandatory provisions of laws and administrative regulations and do not violate public order and good customs, the people's court may recognize them as "trading habits" as mentioned in the Civil Code:

（1） The usual practices of the parties in the transaction activities;

（2） The practices that are known to or should be known by the counterparty when concluding the contract are usually adopted in the local area or in a certain field or industry.

As for the transaction custom, the party making the claim shall bear the burden of proof.

2、 Conclusion of contract

Article 3 If the parties dispute whether the contract is formed, and the people's court is able to determine the name, subject matter and quantity of the parties, the contract shall generally be determined to be formed. However, unless otherwise provided by law or agreed by the parties.

If a contract can be determined to have been formed according to the provisions of the preceding paragraph, the people's court shall determine the contents of the contract that are missing in accordance with Articles 510 and 511 of the Civil Code.

If a party claims that the contract is invalid or requests cancellation or dissolution of the contract, and the people's court considers that the contract is not formed, it shall, in accordance with the provisions of Article 53 of the Several Provisions of the Supreme People's Court on Civil Procedure Evidence, try whether the contract is formed or not as the focus issue, and may reassign the time limit for adducing evidence according to the specific circumstances of the case.

Article 4 The people's court shall support the request of the parties to confirm that the contract is formed when the letter of acceptance reaches the winning bidder when the contract is concluded by means of bidding. After a contract is formed, if the parties refuse to sign a written contract, the people's court shall determine the contents of the contract in accordance with the bidding documents, bidding documents and the notice of award.

If a contract is concluded by means of public bidding, such as on-site auction and online auction, and the parties request to confirm that the contract is established when the self auction seller drops the hammer and the electronic trading system confirms the transaction, the people's court shall support it. After a contract is formed, if the parties refuse to sign a confirmation letter of transaction, the people's court shall determine the contents of the contract in accordance with the auction announcement, bidders' quotations, etc.

The property rights exchange and other institutions preside over the auction and listing transactions, and its published auction announcement, trading rules and other documents publicly determine the conditions for the establishment of the contract. If the parties request to confirm that the contract is established when the conditions are met, the people's court shall support it.

Article 5 If a third party commits fraud or coercion, causing the parties to conclude a contract against their true intentions, and the party suffering losses requests the third party to assume the liability for compensation, the people's court shall support it according to law; If the parties also violate the principle of good faith, the people's court shall determine the corresponding responsibility according to their respective faults. However, if the law or judicial interpretation provides otherwise for the civil liability of the parties and the third party, such provisions shall prevail.

Article 6 Where the parties agree to conclude a contract within a certain period in the future in the form of a subscription letter, a subscription letter, a subscription letter, or other forms, or pay a deposit to guarantee the conclusion of a contract within a certain period in the future, and can determine the subject and subject matter of the contract to be concluded in the future, the people's court shall determine that the advance contract is formed.

The people's court will not support a party's claim for the establishment of an advance contract if it only expresses the intention of the transaction by signing a letter of intent or memorandum, but does not agree to conclude a contract within a certain period in the future, or although there is an agreement, it is difficult to determine the subject and subject of the contract to be concluded in the future.

The subscription letter, purchase order, purchase order and other main contents of the contract, such as the subject matter, quantity, price or remuneration, have reached an agreement between the parties, which meets the conditions for the formation of the contract as stipulated in Paragraph 1 of Article 3 of this Interpretation, and does not clearly stipulate that another contract should be concluded within a certain period in the future, or although there is an agreement, one party has performed and the other party has accepted, The people's court shall confirm the formation of this contract.

Article 7 After the advance contract comes into effect, if one party refuses to conclude this contract or fails to conclude this contract due to violating the principle of good faith when negotiating to conclude this contract, the people's court shall determine that the party fails to perform the obligations agreed in the advance contract.

If the people's court determines whether one party violates the principle of good faith when negotiating and concluding this contract, it shall comprehensively consider whether the conditions proposed by the party during the negotiation are obviously different from the contents of the pre contract and whether it has made reasonable efforts to negotiate.

Article 8 After the advance contract comes into effect, if one party fails to perform its obligations to conclude this contract and the other party requests it to compensate for the losses caused thereby, the people's court shall support it according to law.

Where the parties have agreed on the compensation for the losses specified in the preceding paragraph, the agreement shall prevail; In the absence of such an agreement, the people's court shall consider comprehensively the completeness of the content of the advance contract and the achievement of the conditions for concluding this contract.

Article 9 The people's court will not support the claim that a contract term is not a standard term only on the ground that the contract is made according to the model contract text or that both parties have clearly agreed that the contract term is not a standard term.

The people's court will not support the claim that the contract terms prepared in advance and not negotiated with the other party by one party engaged in business activities are not standard terms only because they are not actually reused. However, unless there is evidence to prove that the provision was not prepared in advance for repeated use.

Article 10 When concluding the contract, the party providing standard terms adopts obvious signs such as words, symbols and fonts that are usually enough to attract the other party's attention, reminding the other party to pay attention to abnormal terms that have a significant interest in the other party, such as exemption or mitigation of its responsibilities, exclusion or restriction of the other party's rights, The people's court may determine that it has fulfilled the obligation of prompt as stipulated in the second paragraph of Article 496 of the Civil Code.

If the party providing the standard terms, at the request of the other party, provides the other party with a generally understandable explanation of the concept, content and legal consequences of the abnormal terms that have a significant interest in the other party in written or oral form, the people's court may determine that it has fulfilled its obligation of explanation as stipulated in the second paragraph of Article 496 of the Civil Code.

The party providing the standard terms shall bear the burden of proof that it has fulfilled its obligation of prompt or explanation. For an electronic contract concluded through the Internet and other information networks, if the party providing the standard terms only claims that it has performed the obligation of prompt or explanation on the grounds of setting check boxes, pop-up windows, etc., the people's court will not support it, except that its evidence is in line with the provisions of the preceding two paragraphs.

3、 Effect of contract

Article 11 One of the parties is a natural person, and according to the age, intelligence, knowledge and experience of the party and the complexity of the transaction, it can be determined that the party lacks the necessary cognitive ability about the nature of the contract, the legal consequences of the conclusion of the contract or the specific risks in the transaction, The people's court may determine that this situation constitutes a "lack of judgment" as stipulated in Article 151 of the Civil Code.

Article 12 After the contract is established in accordance with the law, if the party who has the obligation to submit for approval fails to perform the obligation to submit for approval or the performance of the obligation does not conform to the contract agreement or the provisions of laws and administrative regulations, and the other party requests that it continue to perform the obligation to submit for approval, the people's court shall support it; The people's court shall support the other party's claim to terminate the contract and request it to bear the liability for compensation for violation of the obligation to submit for approval.

If the people's court judges that one party still fails to perform its obligation to report for approval, and the other party claims to terminate the contract and claims for compensation by reference to the liability for breach of contract, the people's court shall support it.

Before the contract was approved, if one party filed a lawsuit to request the other party to perform the main obligations agreed in the contract, and refused to change the lawsuit request after explanation, the people's court shall make a judgment to reject its lawsuit request, but this does not affect it to file a separate lawsuit.

If the party who has the obligation to submit for approval has gone through the formalities of applying for approval or has fulfilled the obligation to submit for approval as determined by an effective judgment, and the approval authority decides not to approve, the people's court will not support the other party's request for compensation. However, if the contract is not approved due to the delay in performing the obligation of submitting for approval and other reasons attributable to the parties, and the other party requests compensation for the losses incurred, the people's court shall handle it in accordance with the provisions of Article 157 of the Civil Code.

Article 13 If the contract is invalid or voidable, and the parties claim that the contract is valid on the grounds that the contract has been filed with the relevant administrative department, approved by the approval authority, or the property rights have been changed or transferred according to the contract, the people's court will not support it.

Article 14 If the parties have concluded multiple contracts with respect to the same transaction, the people's court shall determine that the contract concluded with false intention is invalid. In order to avoid the mandatory provisions of laws and administrative regulations, if a party conceals its true intention with a false intention, the people's court shall determine the validity of the concealed contract in accordance with the provisions of the first paragraph of Article 153 of the Civil Code; In order to avoid the provisions of laws and administrative regulations that a contract should be approved and other procedures, if a party conceals its true intention with a false intention, the people's court shall determine the validity of the concealed contract in accordance with the provisions of the second paragraph of Article 502 of the Civil Code.

If a concealed contract is determined to be invalid or invalid according to the provisions of the preceding paragraph, the people's court shall determine the civil liability of the parties in accordance with Article 157 of the Civil Code on the basis of the concealed contract as a fact. Except as otherwise provided by law.

If multiple contracts concluded by the parties in respect of the same transaction are true expressions of intention and there are no other circumstances affecting the validity of the contract, the people's court shall determine whether the contract content has changed on the basis of ascertaining the order of formation of each contract and the actual performance. If laws and administrative regulations prohibit the modification of the contract content, the people's court shall determine that the corresponding modification of the contract is invalid.

Article 15 When the people's court determines the rights and obligations between the parties, it should not stick to the name used in the contract, but should be based on the content agreed in the contract. If the rights and obligations claimed by the parties are inconsistent with the rights and obligations determined according to the contract content, the people's court shall determine the actual civil legal relationship between the parties based on the facts such as the contracting background, transaction purpose, transaction structure, performance behavior, and whether the parties have fictitious transaction objects.

Article 16 If a contract violates the mandatory provisions of laws and administrative regulations, and in any of the following circumstances, the perpetrator bears administrative responsibility or criminal responsibility can achieve the legislative purpose of the mandatory provisions, the people's court may, in accordance with the first paragraph of Article 153 of the Civil Code, "except that the mandatory provisions do not lead to the invalidity of the civil juristic act" The contract shall not be invalid due to violation of mandatory provisions:

（1） Although the mandatory provisions are intended to maintain social and public order, the actual performance of the contract has a significantly slight impact on social and public order, and determining that the contract is invalid will lead to unfair and just case handling results;

（2） The mandatory provisions are intended to safeguard the government's tax, land transfer fees and other national interests or the legitimate interests of other civil subjects rather than the civil rights and interests of the parties to the contract, and the validity of the contract will not affect the realization of the purpose of the specification;

（3） The mandatory provisions aim to require one party to strengthen risk control, internal management, etc., and the other party has no ability or obligation to review whether the contract violates the mandatory provisions, so that it will bear adverse consequences if the contract is deemed invalid;

（4） Although one of the parties violated the mandatory provisions at the time of concluding the contract, it has already met the conditions for correcting the violation of the mandatory provisions after the conclusion of the contract, but it violates the principle of good faith and will not make corrections;

（5） Other circumstances stipulated by laws and judicial interpretations.

The mandatory provisions of laws and administrative regulations are intended to regulate the performance of a contract after its conclusion. The people's court will not support a party's request for invalidation of a contract on the ground that the contract violates the mandatory provisions. However, unless the performance of the contract necessarily results in the violation of mandatory provisions or otherwise stipulated by laws or judicial interpretations.

If a contract is determined to be valid in accordance with the preceding two paragraphs, but the illegal act of the party has not been handled, the people's court shall make judicial suggestions to the relevant administrative department. If the behavior of a party is suspected of committing a crime, the case clues shall be transferred to the criminal investigation organ; If it is a case of criminal private prosecution, the parties shall be informed that they may file a separate lawsuit in the people's court with jurisdiction.

Article 17 Although the contract does not violate the mandatory provisions of laws and administrative regulations, the people's court shall, in accordance with the provisions of the second paragraph of Article 153 of the Civil Code, determine that the contract is invalid under any of the following circumstances:

（1） The contract affects national security such as political security, economic security and military security;

（2） The contract affects social stability, fair competition order or damages social and public interests, which is against social and public order;

（3） The contract deviates from social morality, family ethics, or violates good customs such as harming human dignity.

When determining whether a contract violates public order and good customs, the people's court should take the socialist core values as the guide, comprehensively consider the subjective motivation and transaction purpose of the parties, the regulatory intensity of the government departments, the frequency of similar transactions by the parties within a certain period of time, the social consequences of the behavior and other factors, and fully argue in the judgment documents. If the parties do not have a significant impact on public order, national security, and good customs because of their need for life, the people's court should not invalidate the contract.

Article 18 Although the provisions of laws and administrative regulations contain such expressions as "shall", "must" or "shall not", the provisions are intended to limit or endow civil rights. If the perpetrator violates the provisions, it will constitute unauthorized punishment, unauthorized agency, ultra vires representative, etc., or result in the opposite party of the contract and the third party obtaining the right to revoke, terminate and other civil rights, The people's court shall determine the validity of the contract in accordance with the civil legal consequences of violating the provisions of laws and administrative regulations.

Article 19 The people's court shall not support a contract concluded for the purpose of transferring or creating property rights, where the parties or the true obligee claim that the contract is invalid only on the ground that the transferor has no ownership or right to dispose of the subject matter at the time of conclusion of the contract; If the contract cannot be performed due to the failure to obtain the consent of the person with real rights or the failure to obtain the right of disposition after the transfer of the person, and the transferee claims to terminate the contract and requests the transferor to bear the liability for compensation for breach of the contract, the people's court shall support it according to law.

If the contract mentioned in the preceding paragraph is confirmed to be valid, and the transferor has registered the delivery or transfer of the property to the transferee, and the real obligee requests to confirm that the property rights have not changed or requests to return the property, the people's court shall support it. However, the transferee obtains property rights in good faith in accordance with Article 311 of the Civil Code and other provisions.

Article 20 In order to limit the representation power of the legal representative of a legal person or the person in charge of an unincorporated organization, laws and administrative regulations stipulate that the matters involved in the contract shall be decided by the authority or decision-making body of the legal person or unincorporated organization, or shall be decided by the executive body of the legal person or unincorporated organization If a contract is concluded in the name of an unincorporated organization and the counterpart who fails to fulfill the obligation of reasonable review claims that the contract is effective for the legal person or unincorporated organization and that it should bear the liability for breach of contract, the people's court will not support it. However, if the legal person or unincorporated organization is at fault, it may be judged to bear the corresponding liability for compensation by reference to the provisions of Article 157 of the Civil Code. If the counterpart has fulfilled the reasonable obligation of review and constituted an apparent representative, the people's court shall deal with it in accordance with the provisions of Article 504 of the Civil Code.

If the matters involved in the contract do not exceed the authority of the legal representative or the representative of the person in charge as prescribed by laws and administrative regulations, but exceed the restrictions on the right of representation imposed by the articles of association or the authority of a legal person or an unincorporated organization, and the counterpart claims that the contract shall have effect on the legal person or an unincorporated organization and be liable for breach of contract, the people's court shall support it according to law. However, the legal person or unincorporated organization shall provide evidence to prove that the counterpart knows or should know the restriction.

If a legal person or an unincorporated organization, after assuming civil liability, seeks compensation from the legal representative or person in charge who is at fault for the losses caused by the act of ultra vires representation, the people's court shall support it according to law. Where laws or judicial interpretations provide otherwise on the civil liability of the legal representative or the person in charge, such provisions shall prevail.

Article 21 The people's court will not uphold the claim of the counterpart that the contract is valid for the legal person or unincorporated organization and that the counterpart should bear the liability for breach of contract if the staff of the legal person or unincorporated organization concludes a contract in the name of the legal person or unincorporated organization on a matter beyond the scope of their functions and powers. However, if a legal person or an unincorporated organization is at fault, the people's court may, with reference to the provisions of Article 157 of the Civil Code, make a judgment that it shall bear the corresponding liability for compensation. If the foregoing circumstances constitute apparent agency, the people's court shall deal with them in accordance with Article 172 of the Civil Code.

In case of any of the following circumstances in the matters involved in the contract, the people's court shall determine that the staff members of legal persons and unincorporated organizations exceeded their functions and powers when concluding the contract:

（1） Matters that should be decided by the power organ or decision-making organ of a legal person or an unincorporated organization according to law;

（2） Matters that should be decided by the executive organs of legal persons and non legal persons according to law;

（3） Matters that should be implemented by legal representatives and responsible persons on behalf of legal persons and unincorporated organizations according to law;

（4） It does not belong to the matters that can be handled by its authority under normal circumstances.

If the matters involved in the contract do not go beyond the scope of functions and powers determined according to the preceding paragraph, but go beyond the limits of legal persons and unincorporated organizations on the scope of functions and powers of staff members, and the counterpart claims that the contract is valid for legal persons and unincorporated organizations and that they are liable for breach of contract, the people's court shall support it. However, the legal person or unincorporated organization shall provide evidence to prove that the counterpart knows or should know the restriction.

If a legal person or an unincorporated organization, after assuming civil liability, seeks compensation from a staff member who intentionally or has gross negligence, the people's court shall support it according to law.

Article 22 If the legal representative, person in charge or staff member enters into a contract in the name of a legal person or an unincorporated organization and does not exceed their authority, and a legal person or an unincorporated organization claims that the contract is not valid for them only because the seal affixed to the contract is not a record seal or is a forged seal, the people's court will not support it.

If a contract is concluded in the name of a legal person or an unincorporated organization, but only the legal representative, the person in charge or the staff member has signed it or has not affixed the seal of the legal person or the unincorporated organization according to the fingerprint, and the counterpart can prove that the legal representative, the person in charge or the staff member did not exceed their authority when concluding the contract, the people's court shall determine that the contract is not binding on the legal person The unincorporated organization takes effect. However, unless the parties agree that affixing a seal is a condition for the formation of the contract.

If a contract is only stamped with the seal of a legal person or an unincorporated organization without the signature or fingerprint of a person, and the counterpart can prove that the contract was concluded by the legal representative, person in charge or staff within the scope of his authority, the people's court shall determine that the contract is effective for the legal person or unincorporated organization.

Under the circumstances specified in the preceding three paragraphs, if the legal representative, person in charge or staff member, although exceeding the authority of representative or agency when concluding a contract, constitutes a prima facie representative in accordance with the provisions of Article 504 of the Civil Code, or a prima facie agency in accordance with the provisions of Article 172 of the Civil Code, the people's court shall determine that the contract is binding on the legal person The unincorporated organization takes effect.

Article 23 If the legal representative, person in charge or agent maliciously colludes with the counterpart to conclude a contract in the name of a legal person or an unincorporated organization, thereby harming the legitimate rights and interests of the legal person or unincorporated organization, and the legal person or unincorporated organization claims not to bear civil liability, the people's court shall uphold it. If a legal person or an unincorporated organization requests the legal representative, responsible person or agent and the counterpart to bear joint and several liability for the losses incurred, the people's court shall support it.

According to the evidence provided by legal persons and unincorporated organizations, taking into account the trading habits between the parties, whether the contract was obviously unfair at the time of conclusion, whether the relevant personnel had obtained illegitimate interests, the performance of the contract and other factors, the people's court can determine that there is a high possibility of malicious collusion between the legal representative, responsible person or agent and the counterpart, The aforesaid personnel may be required to make statements or provide corresponding evidence on the process of contract conclusion and performance and other relevant facts. If he refuses to make a statement without justified reasons, or the statement is unreasonable and cannot provide corresponding evidence, the people's court may determine that the fact of malicious collusion is true.

Article 24 If the contract is not formed, invalid, cancelled or determined not to be effective, and the party requests the return of property, and the property can be returned after examination, the people's court shall, according to the specific circumstances of the case, apply the methods of returning the subject matter in possession, correcting the records in the registration book, etc. separately or jointly; If the property cannot be returned or it is unnecessary to return it after examination, the people's court shall make a judgment on the basis of the market value of the property or the value calculated in other reasonable ways on the date when the contract is determined to be unfounded, invalid, canceled or determined to be ineffective.

In addition to the circumstances specified in the preceding paragraph, if the parties also request compensation for losses, the people's court shall reasonably determine the amount of compensation for losses according to the degree of fault and the size of the original force of both parties, the principle of good faith and the principle of fairness, in combination with the situation of property return or compensation for discount, taking into account the facts such as the gains from property appreciation and depreciation losses, transaction costs, etc.

If the contract is not formed, invalid, cancelled or determined not to be effective, and the behavior of the parties is suspected of being illegal and has not been handled, which may lead to one or both parties obtaining improper benefits through illegal behavior, the people's court shall put forward judicial suggestions to the relevant administrative department. If the behavior of a party is suspected of committing a crime, the case clues shall be transferred to the criminal investigation organ; If it is a case of criminal private prosecution, the parties shall be informed that they may file a separate lawsuit in the people's court with jurisdiction.

Article 25 If the contract is not formed, invalid, cancelled or determined to be invalid, and the party who has the right to request the return of price or remuneration requests the other party to pay the fund occupation fee, the people's court shall, within the scope of the party's request, calculate it according to the one-year loan market quotation rate (LPR) published by the National Interbank Funding Center authorized by the People's Bank of China. However, if the party occupying the funds has no fault in the non establishment, invalidity, cancellation or determination of non effectiveness of the contract, it shall be calculated based on the benchmark interest rate of the same kind of deposits for the same period published by the People's Bank of China.

The people's court shall support the parties' claim for simultaneous performance of the return obligations of both parties; If the party in possession of the subject matter has used or can use the subject matter according to law, and the other party requests to offset the funds occupation fee payable and the subject matter utilization fee receivable, the people's court shall support it, except as otherwise provided by law.

4、 Performance of the Contract

Article 26 If one party fails to perform such non major debts as issuing invoices and providing supporting documents in accordance with the law or the contract, and the other party requests to continue to perform such debts and compensate for the losses caused by its failure to perform such debts, the people's court shall support it in accordance with the law; If the other party requests to terminate the contract, the people's court will not support it, except that the purpose of the contract cannot be realized due to the non performance of the debt or the parties agree otherwise.

Article 27 If the debtor or a third party and the creditor reach an agreement on paying the debt in kind after the expiration of the debt performance period, and there is no circumstance that affects the validity of the contract, the people's court shall determine that the agreement becomes effective when the parties agree.

After the debtor or a third party has performed the agreement of paying debts in kind, the people's court shall determine that the corresponding original debts shall be extinguished at the same time; If the debtor or a third party fails to perform the agreement of paying debts in kind as agreed, and still fails to perform within a reasonable time after being urged to do so, and the creditor chooses to request the performance of the original debt or the agreement of paying debts in kind, the people's court shall support it, except otherwise provided by law or agreed by the parties.

The people's court shall not support the creditor's claim for property rights that have changed since the confirmation or mediation agreement came into force or that have the effect against a bona fide third party when the agreement for paying debts in kind specified in the preceding paragraph is confirmed by the people's court or the people's court makes a mediation statement based on the agreement for paying debts in kind reached by the parties.

If the debtor or a third party enters into an agreement of paying off debts in kind with its property rights that it does not have the right of ownership or disposal, it shall be handled in accordance with the provisions of Article 19 of this interpretation.

Article 28 If the debtor or a third party and the creditor reach an agreement on paying the debt in kind before the maturity of the debt performance period, the people's court shall determine the validity of the agreement on the basis of reviewing the relationship between the creditor and the creditor.

Where the parties agree that the debtor has not paid off the debt when due, and the creditor may auction, sell or convert the property for debt repayment to realize the creditor's rights, the people's court shall determine that the agreement is valid. If the parties agree that the debtor has not paid off his debts when due and that the property used to offset the debts belongs to the creditor, the people's court shall deem the agreement invalid, but this does not affect the validity of other parts; The people's court shall support the creditor's request for auction, sale or discount of the debt paying property to realize the creditor's rights.

If the debtor or a third person fails to transfer the property rights to the creditor after the parties have concluded the agreement of paying debts in kind as prescribed in the preceding paragraph, and the creditor claims priority in compensation, the people's court shall not support it; If the debtor or a third party has transferred the property rights to the creditor, it shall be handled in accordance with Article 68 of the Interpretation of the Supreme People's Court on the Application of the Civil Code of the People's Republic of China Concerning the Guarantee System.

Article 29 The people's court shall support the request of a third person as stipulated in the second paragraph of Article 522 of the Civil Code for the debtor to perform its obligations to itself; The people's court shall not support a request for the exercise of civil rights such as the right of cancellation or rescission, except as otherwise provided by law.

If the contract is canceled or dissolved according to law, and the debtor requests the creditor to return the property, the people's court shall support it.

The people's court shall support the debtor's request for the debtor to perform its obligations to itself, unless the debtor has extinguished its obligations by escrow or other means. If the third person refuses to accept or the acceptance is delayed, and the debtor requests the creditor to compensate for the losses caused thereby, the people's court shall support it according to law.

Article 30 The following civil subjects may be recognized by the people's court as the third person who has a legitimate interest in the performance of debts as stipulated in the first paragraph of Article 524 of the Civil Code:

（1） The guarantor or the third party who provides the guarantee of the property;

（2） The transferee, usufructuary right holder and legal possessor of the security property;

（3） The next ranking secured party on the secured property;

（4） A third person who has a legal interest in the debtor's property and whose interest will be lost due to the enforcement of the property;

（5） Where the debtor is a legal person or an organization without legal personality, its contributor or founder;

（6） If the debtor is a natural person, his close relatives;

（7） Other third parties who have legitimate interests in the performance of debts.

A third party may obtain the creditor's right against the debtor within the scope of its performance on its behalf, but may not harm the interests of the creditor.

If the guarantor claims the guarantee right from other guarantors after obtaining the creditor's right for the performance of the debt, it shall be handled in accordance with the provisions of Article 13, Article 14, and Paragraph 2 of Article 18 of the Interpretation of the Supreme People's Court on the Application of the Civil Code of the People's Republic of China Concerning the Guarantee System.

Article 31 If the parties owe each other debts, and one party refuses to perform its own major debts on the ground that the other party has not performed its non major debts, the people's court shall not support it. However, unless the other party fails to perform non major debts, which makes it impossible to realize the purpose of the contract or the parties agree otherwise.

If one of the parties brings a lawsuit to request the other party to perform its obligations, and the defendant claims the defense of simultaneous performance of both parties in accordance with the provisions of Article 525 of the Civil Code, and the defense is tenable, if the defendant does not file a counterclaim, the people's court shall judge the defendant to perform its obligations while the plaintiff performs its obligations, and specify in the judgment that the plaintiff applies for compulsory execution, The people's court shall take enforcement action against the defendant after the plaintiff has fulfilled its debts; If the defendant files a counterclaim, the people's court shall make a judgment that both parties perform their own debts at the same time, and specify in the judgment that if either party applies for compulsory execution, the people's court shall take enforcement action against the other party after the party performs its own debts.

If one party brings a lawsuit to request the other party to perform its obligations, and the defendant claims the plaintiff's defense that should be performed first according to the provisions of Article 526 of the Civil Code and the defense is established, the people's court shall reject the plaintiff's claim, but it does not affect the plaintiff to bring a new lawsuit after performing its obligations.

Article 32 After the conclusion of the contract, the price rises or falls that the parties could not foresee at the time of conclusion of the contract and were not commercial risks due to policy adjustment or abnormal changes in market supply and demand, and it is obviously unfair for one party to continue to perform the contract, The people's court shall determine that the basic conditions of the contract have undergone "significant changes" as stipulated in the first paragraph of Article 533 of the Civil Code. However, the contract involves bulk commodities with active market attributes and large price fluctuations for a long time, as well as venture capital financial products such as stocks and futures.

If the basic conditions of the contract have changed significantly as stipulated in the first paragraph of Article 533 of the Civil Code, and the parties request to change the contract, the people's court may not terminate the contract; If one party requests to modify the contract and the other party requests to terminate the contract, or if one party requests to terminate the contract and the other party requests to modify the contract, the people's court shall make a judgment to modify or terminate the contract according to the principle of fairness in combination with the actual situation of the case.

If the people's court decides to modify or terminate the contract in accordance with the provisions of Article 533 of the Civil Code, it shall comprehensively consider the time when the basic conditions of the contract have changed significantly, the situation of the parties're negotiation, and the losses caused to the parties due to the modification or termination of the contract, and specify the time for the modification or termination of the contract in the judgment.

If the parties have agreed in advance to exclude the application of Article 533 of the Civil Code, the people's court shall determine that the agreement is invalid.

5、 Preservation of contracts

Article 33 Where the debtor fails to perform its due debt to the creditor, nor claims its creditor's rights or accessory rights related to the creditor's rights from the opposite party in litigation or arbitration, resulting in the creditor's failure to realize its due creditor's rights, The people's court may determine it as "the debtor's delay in exercising his creditor's rights or his subordinate rights related to the creditor's rights affects the realization of the creditor's rights due" as stipulated in Article 535 of the Civil Code.

Article 34 The following rights may be recognized by the people's court as those exclusively belonging to the debtor as stipulated in the first paragraph of Article 535 of the Civil Code:

（1） Alimony, alimony or the right to claim alimony;

（2） The right to claim compensation for personal injury;

（3） The right to claim labor remuneration, except for the part that exceeds the living expenses of the debtor and his dependent family members;

（4） Request payment of basic endowment insurance, unemployment insurance, minimum living security and other rights to protect the basic life of the parties;

（5） Other rights exclusively belonging to the debtor.

Article 35 Where an obligee brings a suit of subrogation against the debtor's counterpart in accordance with the provisions of Article 535 of the Civil Code, it shall be under the jurisdiction of the people's court in the place where the defendant is domiciled, except that the provisions on exclusive jurisdiction shall apply according to law.

If the debtor or the opposite party raises an objection on the ground that there is a jurisdiction agreement between the creditor and the debtor, the people's court will not support it.

Article 36 After the creditor brings a suit of subrogation, if the debtor or the opposite party raises an objection to the head of the court on the ground that there is an arbitration agreement between the creditor and the debtor, the people's court will not support it. However, if the debtor or the opposite party applies for arbitration of the creditor's rights and debt relationship between the debtor and the opposite party before the first hearing, the people's court may suspend the action of subrogation according to law.

Article 37 If the creditor brings a suit of subrogation to the people's court with the debtor's counterpart as the defendant and does not list the debtor as a third person, the people's court shall add the debtor as a third person.

If two or more creditors bring a suit of subrogation with the same counterpart of the debtor as the defendant, the people's court may try it jointly. If the creditor's rights enjoyed by the debtor against the other party are not sufficient to pay off the debts owed by the debtor to two or more creditors, the people's court shall determine the performance share of the other party according to the proportion of the creditor's rights, except as otherwise provided by law.

Article 38 If the creditor brings a suit of subrogation against the debtor's counterpart in the same people's court after bringing a suit against the debtor in the people's court, and the suit falls under the jurisdiction of the people's court, it may be tried together. If it is not under the jurisdiction of the people's court, it shall be informed to file a separate lawsuit with the people's court that has jurisdiction; Before the end of the action against the debtor, the action of subrogation shall be suspended.

Article 39 In a suit of subrogation, if the debtor brings a suit against the counterpart for the part of the creditor's rights that exceeds the amount of the creditor's subrogation claim, and if it is under the jurisdiction of the same people's court, it may be tried together. If the case is not under the jurisdiction of the same people's court, it shall be informed to bring a separate lawsuit to the people's court with jurisdiction; Before the termination of the action of subrogation, the debtor's action against the counterpart shall be suspended.

Article 40 In a suit of subrogation, if the people's court considers after trial that the creditor's claim does not meet the conditions for exercising the right of subrogation, it shall reject the claim, but this shall not prevent the creditor from suing again according to the new facts.

The people's court will not support the debtor's counterpart who claims that the creditor's action does not meet the conditions for the exercise of subrogation only on the ground that the creditor's right and debt relationship between the creditor and the debtor has not been confirmed by effective legal documents when the creditor files a suit of subrogation.

Article 41 After the creditor brings a suit of subrogation, if the debtor relieves the debt of the opposite party or extends the time limit for performance of the opposite party without justified reasons, and the opposite party defends against the creditor, the people's court shall not support it.

Article 42 With regard to the "obviously unreasonable" low or high price specified in Article 539 of the Civil Code, the people's court shall determine it in accordance with the judgment of the local general operator of the transaction and with reference to the market transaction price at the transaction place or the price guided by the price department at the time of the transaction.

If the transfer price fails to reach 70% of the market transaction price or guidance price at the place of transaction at the time of transaction, it can generally be identified as "obviously unreasonable low price"; If the transfer price is 30% higher than the market transaction price or guidance price at the place of transaction at the time of transaction, it can generally be regarded as "obviously unreasonable high price".

Where the debtor has a kinship or association relationship with the counterpart, the restriction of 70% or 30% specified in the preceding paragraph shall not apply.

Article 43 Where the debtor, at an obviously unreasonable price, conducts such acts as exchanging property, paying debts with property, leasing or renting property, or licensing the use of intellectual property rights, which affects the realization of the creditor's rights, the debtor's counterpart knows or should know the situation, and the creditor requests cancellation of the debtor's act, The people's court shall support it in accordance with the provisions of Article 539 of the Civil Code.

Article 44 Where an obligee brings a suit for cancellation right in accordance with the provisions of Articles 538 and 539 of the Civil Code, the obligor and its counterpart shall be the joint defendants, and the people's court in the place where the obligor or the counterpart has its domicile shall have jurisdiction, except that the provisions on exclusive jurisdiction shall apply according to law.

If two or more creditors bring a suit for cancellation right against the same act of the debtor, the people's court may combine the proceedings.

Article 45 In the litigation of the creditor's right to revoke, the subject matter of the revoked act can be divided, and if the party claims to revoke the debtor's act within the scope of the affected creditor's rights, the people's court shall support it; If the subject matter of the revoked act is indivisible and the creditor claims to revoke all the debtor's acts, the people's court shall support it.

The reasonable attorney's fees, travel expenses and other expenses paid by the creditor to exercise the cancellation right may be recognized as "necessary expenses" as stipulated in Article 540 of the Civil Code.

Article 46 If the creditor simultaneously requests the debtor's counterpart to bear the legal consequences such as returning property, making compensation at a discount, and performing due debts to the debtor in the cancellation action, the people's court shall support it according to law.

The people's court that the creditor requests to accept the action of cancellation right to hear the creditor debtor relationship between the creditor and the debtor at the same time, if it is under the jurisdiction of the people's court, it may combine the trials. If the case is not under the jurisdiction of the people's court, it shall be informed to file a separate lawsuit with the people's court that has jurisdiction.

If the creditor applies for compulsory execution according to the effective legal documents arising from the litigation between the creditor and the debtor and the litigation of cancellation right, the people's court may take compulsory execution measures for the debtor's rights against the counterpart to realize the creditor's rights. If the creditor applies for taking preservation measures against the property of the counterpart in the lawsuit of cancellation right, the people's court shall grant permission according to law.

6、 Change and transfer of contract

Article 47 After the assignment of the creditor's right, if the debtor claims against the assignee his defense against the assignor, the people's court may add the assignor as a third party.

After the debt is transferred, if the new debtor claims the original debtor's defense against the creditor, the people's court may add the original debtor as a third party.

If, after one party has assigned its contractual rights and obligations at the same time, the other party claims a defense against the assignee in respect of its contractual rights and obligations or the assignee claims a defense against the other party in respect of its contractual rights and obligations, the people's court may add the assignor as a third party.

Article 48 If the debtor has performed to the transferor before receiving the notice of assignment of creditor's rights, and the transferee requests the debtor to perform, the people's court will not support it; If the debtor still performs to the transferor after receiving the notice of assignment of creditor's rights, and the transferee requests the debtor to perform, the people's court shall support it.

If the transferor fails to notify the debtor, the transferee directly brings a suit against the debtor to request performance of the debt, and the people's court confirms the fact of the assignment of the creditor's rights after hearing the case, it shall be determined that the assignment of the creditor's rights is effective against the debtor since the copy of the indictment was served. The people's court shall support the debtor's claim that the increased expenses or losses caused by the debtor's failure to notify should be deducted from the recognized amount of creditor's rights.

Article 49 After the debtor receives the notice of assignment of creditor's rights, if the transferor requests the debtor to perform to it on the ground that the assignment contract of creditor's rights is not formed, invalid, canceled or determined not to be effective, the people's court shall not support it. However, the notice of assignment of creditor's rights is revoked according to law.

If the debtor refuses to perform to the assignee on the ground that the creditor's right does not exist after the assignee confirms the assignee's creditor's right based on the debtor's true existence of the creditor's right, the people's court will not support it. However, unless the transferee knows or should know that the creditor's right does not exist.

Article 50 If the transferor transfers the same creditor's right to two or more transferees, and the debtor claims that it will not perform the obligation again because it has performed to the first notified transferee, the people's court shall uphold it. The people's court shall uphold the debtor's request that the debtor continue to perform the debt or request the transferor to bear the liability for breach of contract in accordance with the creditor's rights assignment agreement, knowing that the transferee accepting the performance is not the transferee notified first; The people's court shall not support the request of the transferee who first notified the transferee to return the property accepted by the transferee who accepted the performance, except that the transferee who accepted the performance knew that the creditor's rights had been transferred to other transferees before its transfer.

The first notified assignee mentioned in the preceding paragraph refers to the assignee specified in the assignment notice that first reaches the debtor. If there is a dispute between the parties about the time of arrival of the notice, the people's court shall make a comprehensive judgment based on such factors as the manner of the notice, and not only on the time of the notice recognized by the debtor or the time recorded in the notice. If a party sends a notice by mail or electronic communication system, the people's court shall take the postmark time or the time recorded in the electronic communication system as the basis for determining the time of arrival of the notice.

Article 51 If a third party joins the debt and has agreed with the debtor on the right of recourse, and claims to recover from the debtor after performing the debt, the people's court shall support it; In the absence of an agreement on the right of recourse, if a third party, in accordance with the provisions of the Civil Code on unjust enrichment, requests the debtor to perform his obligations to the creditor within the scope of his performance, the people's court shall support it, except that the third party knows or should know that adding the debt will harm the interests of the debtor.

The people's court shall support the debtor's claim against a third party who has joined the debt in respect of its defense against the creditor.

7、 Termination of rights and obligations under the contract

Article 52 If the parties fail to deal with the liability for breach of contract, settlement, liquidation and other issues after the termination of the contract when they reach consensus on the termination of the contract, and one party claims that the contract has been terminated, the people's court shall support it. However, unless otherwise agreed by the parties.

In any of the following circumstances, the people's court may determine the termination of the contract, unless one of the parties otherwise expresses its intention:

（1） One party claims to exercise the right of rescission as provided by law or agreed in the contract, but the other party agrees to the rescission after hearing that it does not meet the conditions for exercising the right of rescission;

（2） Both parties do not meet the conditions for exercising the right to terminate the contract, but both parties claim to terminate the contract.

The people's court shall deal with such issues as liability for breach of contract, settlement and liquidation under the circumstances of the preceding two paragraphs in accordance with Articles 566 and 567 of the Civil Code and the provisions on liability for breach of contract.

Article 53 If one party terminates the contract by notice and claims that the contract has been terminated on the ground that the other party failed to raise an objection within the agreed time limit for objection or other reasonable time limit, the people's court shall review whether it has the right to terminate as provided by law or agreed in the contract. If, upon examination, it is entitled to terminate the contract, the contract shall be terminated when the notice reaches the other party; If the party does not enjoy the right to terminate the contract, the contract shall not be terminated.

Article 54 Without notifying the other party, one party directly claimed to terminate the contract by filing a lawsuit, and then filed a lawsuit again to claim to terminate the contract after the withdrawal of the lawsuit. If the people's court supports the claim after hearing, the contract will be terminated when the copy of the bill of complaint filed again is delivered to the other party. However, unless one party, after withdrawing the lawsuit, notifies the other party to terminate the contract and the notice has reached the other party.

Article 55 If one party claims set off in accordance with the provisions of Article 568 of the Civil Code, and the people's court considers that the right of set off is established after trial, it shall determine that the principal debt, interest, liquidated damages or damages and other debts borne by both parties shall be extinguished within the same amount when the notice reaches the other party.

Article 56 If the party exercising the right of set off bears several debts of the same kind, but the creditor's rights it enjoys are not enough to set off all the debts, and the parties dispute over the order of set off, the people's court may refer to the provisions of Article 560 of the Civil Code for settlement.

If the creditor's rights enjoyed by the party exercising the right of set off are insufficient to offset all the debts it bears, including the principal debt, interest, and relevant expenses for realizing the creditor's rights, and if the parties dispute over the order of set off, the people's court may refer to the provisions of Article 561 of the Civil Code for settlement.

Article 57 The people's court shall not support the liability for compensation for damages arising from infringement of the personal rights and interests of natural persons, or intentional or gross negligence infringement of the property rights and interests of others, where the infringer claims to set off.

Article 58 If the parties owe each other debts, and one party notifies the other party of its claims that have expired during the limitation period to claim set off, and the other party raises a defense against the limitation period, the people's court shall support the defense. The people's court shall uphold the claim of offset made by the other party when the limitation period for claims of one party has expired.

  8、 Liability for breach of contract

Article 59 If one party requests to terminate the contractual rights and obligations in accordance with the provisions of the second paragraph of Article 580 of the Civil Code, the people's court shall generally take the time when the copy of the bill of complaint is delivered to the other party as the time when the contractual rights and obligations are terminated. According to the specific circumstances of the case, if it is more consistent with the principles of fairness and good faith to take other time as the time of termination of contractual rights and obligations, the people's court may take this time as the time of termination of contractual rights and obligations, but it shall fully explain the reasons in the judgment document.

Article 60 When the people's court determines the benefits that can be obtained after the performance of the contract in accordance with the provisions of Article 584 of the Civil Code, it may, after deducting the reasonable costs such as the expenses incurred by the non breaching party for the conclusion and performance of the contract, calculate them according to the production profits, operating profits or resale profits that can be obtained by the non breaching party.

If the non breaching party exercises the right to terminate the contract according to law and implements a substitute transaction, and claims to determine the benefits that can be obtained after the contract is performed according to the difference between the price of the substitute transaction and the contract price, the people's court shall support it according to law; If the price of the substitute transaction obviously deviates from the local market price at the time of the substitute transaction, and the defaulting party claims to determine the benefits that can be obtained after the performance of the contract according to the difference between the market price and the contract price, the people's court shall support it.

If the non breaching party exercises the right to terminate the contract according to law but fails to implement the substitute transaction, and claims to determine the benefits that can be obtained after the performance of the contract according to the difference between the market price of the place where the contract is performed and the contract price within a reasonable period after the occurrence of the breach, the people's court shall support it.

Article 61 In a term contract with continuous performance as its content, if one party fails to perform monetary obligations such as payment of price and rent, and the other party requests to terminate the contract, the people's court may, according to the claims of the parties, refer to the contract subject, transaction type, market price changes The remaining performance period and other factors determine the reasonable period for the non defaulting party to find alternative transactions, and determine the benefits that can be obtained after the performance of the contract according to the price, rent, etc. corresponding to the period minus the corresponding performance costs that the non defaulting party should pay.

If the non breaching party claims to determine the benefits that can be obtained after the performance of the contract according to the price, rent, etc. corresponding to the remaining performance period after the termination of the contract minus the performance cost, the people's court will not support it. However, the exception is that the remaining period of performance is less than the reasonable period for seeking alternative transactions.

Article 62 If it is difficult to determine the benefits that the non defaulting party can obtain after the performance of the contract in accordance with the provisions of Articles 60 and 61 of this Interpretation, the people's court may determine in accordance with the principles of fairness and good faith, taking into account the benefits that the defaulting party obtains from the breach of contract, the extent of the defaulting party's fault, other circumstances of breach of contract and other factors.

Article 63 When determining the "possible losses due to breach of contract that the breaching party foresaw or should have foreseen when concluding the contract" as stipulated in Article 584 of the Civil Code, the people's court shall, according to the purpose of the contract concluded by the parties, comprehensively consider the contract subject, contract content, transaction type, transaction customs, consultation process and other factors, It shall be determined according to the losses that the civil subject in the same or similar situation with the defaulting party foresees or should foresee when concluding the contract.

In addition to the benefits that can be obtained after the performance of the contract, the non breaching party claims that it should pay additional expenses and other losses caused by the breach of the contract to the third party, and requests the breaching party to compensate. If it is considered that the loss is foreseen or should be foreseen by the breaching party when concluding the contract, the people's court should support it.

When determining the amount of damages for breach of contract, if the breaching party claims to deduct the expanded losses caused by the non breaching party's failure to take appropriate measures, the corresponding losses caused by the non breaching party's fault, the additional benefits obtained by the non breaching party due to the breach of contract or the reduced necessary expenses, the people's court shall support it according to law.

Article 64 If one of the parties requests to adjust the liquidated damages by means of counterclaim or defense, the people's court shall support it according to law.

If the breaching party claims that the agreed liquidated damages are too high than the losses caused by the breach of contract and requests an appropriate reduction, it shall bear the burden of proof. If the non breaching party claims that the agreed liquidated damages are reasonable, it shall also provide corresponding evidence.

The people's court will not support the claim that the party should not adjust the liquidated damages only on the ground that the contract should not adjust the liquidated damages.

Article 65 If the parties claim that the agreed liquidated damages are too high than the losses caused by the breach of contract, and request an appropriate reduction, the people's court shall, on the basis of the losses specified in Article 584 of the Civil Code, take into account the contract subject, transaction type, performance of the contract, fault degree of the parties, performance background and other factors, and follow the principles of fairness and good faith for measurement, And make a decision.

If the agreed liquidated damages exceed 30% of the losses caused, the people's court may generally determine that the liquidated damages are excessively higher than the losses caused.

The people's court generally does not support the request of the party who breaches the contract maliciously to reduce the liquidated damages.

Article 66 If one party requests the other party to pay liquidated damages, and the other party defends on the ground that the contract is not formed, invalid, revoked, determined not to be effective, does not constitute a breach of contract, or the non breaching party does not have losses, and does not claim to adjust the liquidated damages excessively, the people's court shall explain whether the party requests to adjust the liquidated damages if it does not support the defense. If the people's court of first instance considers that the defense is tenable and fails to explain it, and if the people's court of second instance considers that a judgment should be made to pay the liquidated damages, it may directly explain it, and at the request of the parties, after the parties have fully provided evidence, cross examined evidence, and debated whether the liquidated damages should be adjusted, it may decide to appropriately reduce the liquidated damages according to law.

If the defendant did not appear in court to participate in the proceedings of first instance due to objective reasons, but appeared in court to participate in the proceedings of second instance and requested to reduce the liquidated damages, the people's court of second instance may, after the parties have fully provided evidence, cross examined evidence and debated whether the liquidated damages should be adjusted, decide to appropriately reduce the liquidated damages according to law.

Article 67 The people's court shall not uphold the claim of one party for the application of the penalty for deposit provided for in Article 587 of the Civil Code when the party concerned pays a lien, a guarantee, a security deposit, a contractual deposit, a security deposit or a deposit, but does not stipulate the nature of the deposit. If the parties have agreed on the nature of the deposit, but have not agreed on the type of deposit or the agreement is unclear, and one party claims to be the deposit for breach of contract, the people's court shall support it.

If the parties agree to pay a deposit as a guarantee for the conclusion of a contract, and one party refuses to conclude the contract or fails to conclude the contract due to its breach of the principle of good faith when negotiating the conclusion of the contract, and the other party claims to apply the deposit penalty provisions in Article 587 of the Civil Code, the people's court shall support it.

If the parties agree that the payment of the deposit shall be the condition for the formation or effectiveness of the contract, and the party that should pay the deposit fails to pay the deposit, but the main obligations of the contract have been fulfilled and accepted by the other party, the people's court shall determine that the contract has been formed or becomes effective when the other party accepts the performance.

The parties agree that the nature of the deposit is the termination deposit. If the party who paid the deposit claims to terminate the contract at the cost of losing the deposit, or the party who received the deposit claims to terminate the contract at the cost of returning the deposit twice, the people's court shall support it.

Article 68 The people's court will not support the request of one party for the application of the deposit penalty if both parties have breached the contract, which makes it impossible to achieve the purpose of the contract. If one of the parties only has a minor breach of contract, and the other party has a breach of contract that makes it impossible to achieve the purpose of the contract, the minor breaching party claims to apply the deposit penalty, and the other party defends that the minor breaching party also constitutes a breach of contract, the people's court will not support this defense.

If one party has partially performed the contract, and the other party accepts and claims to apply the deposit penalty according to the proportion of the unperformed part, the people's court shall support it. The people's court will not support the other party's claim to apply the deposit penalty as a whole in accordance with the contract, except that the purpose of the contract cannot be realized due to partial failure to perform.

If the contract cannot be performed due to force majeure and the non breaching party claims to apply the deposit penalty, the people's court will not support it.

  9、 Supplementary Provisions

Article 69 This interpretation shall come into force on December 5, 2023.

This Interpretation shall apply to civil cases arising from legal facts after the implementation of the Civil Code, which have not been finally adjudicated after the implementation of this Interpretation; These Interpretations shall not apply to cases where a party applies for retrial or decides to retrial in accordance with the procedure of trial supervision, since the trial has been final before the implementation of these Interpretations.