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CONTRACT LAW OF P. R. CHINA 6
Sources:International Trade Law, Time:2017-03-06 15:54, Click:, Comment
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Article 254 Delegation of Ancillary Task by Hiree
The hiree may delegate any ancillary task of the hired work to a third person for completion. Where the hiree delegated any ancillary task of the hired work to a third person for completion, it shall be responsible to the hirer for the work product completed thereby.
Article 255 Materials Supplied by Hiree Subject to Inspection
Where the hiree is to supply the materials, it shall select the materials in accordance with the contract and shall make such materials available for inspection by the hirer.
Article 256 Hiree‘s Timely Inspection of Materials Supplied by Hirer
Where the hirer is to supply the materials, it shall supply the materials in accordance with the contract. The hiree shall timely inspect the materials supplied by the hirer, and where non-compliance is discovered, it shall timely instruct the hirer to replace or supplement the materials or otherwise cure the non-compliance.
The hiree may not replace the materials supplied by the hirer without authorization, and may not replace any component which does not require repair.
Article 257 Hiree‘s Remedies in Case of Hirer‘s Delay in Responding
Where the hiree discovers that the drawings or technical requirements provided by the hirer are unreasonable, it shall timely notify the hirer. Where the hiree sustains any loss due to reasons such as the hirer‘s delay in responding, etc., the hirer shall pay damages.
Article 258 Hirer Responsible for Its Change of Requirements
Where the hirer changed its requirements for the hired work while the work was under way, thereby causing loss to the hiree, the hirer shall indemnify the hiree.
Article 259 Hirer‘s Obligation to Assist in Performance
Where performance of the hired work requires assistance by the hirer, it is obligated to provide assistance. Where the hired work is not capable of being completed due to failure by the hirer to fulfill its obligation to assist, the hiree may demand performance from the hirer within a reasonable period and extend the time of its own performance; where the hirer fails to perform at the end of such period, the hiree may terminate the contract.
Article 260 Hirer‘s Right to Monitor
In the course of performing the hired work, the hiree shall consent to any necessary monitoring and inspection by the hirer. Any monitoring or inspection conducted by the hirer may not impair the normal work of the hiree.
Article 261 Delivery of Work Product by Hiree
Upon completion of the hired work, the hiree shall deliver the work product to the hirer and shall submit thereto the required technical materials and related quality certificate. The hirer shall conduct acceptance inspection of the work product.
Article 262 Hirer‘s Remedies in Case of Quality Non-compliance
Where the work product delivered by the hiree fails to meet the quality requirements, the hirer may require the hiree to assume liabilities for breach of contract by way of repair, remaking, reduction in remuneration, or payment of damages.
Article 263 Time of Payment of Remuneration
The hirer shall pay the remuneration at the prescribed time. Where the time of payment was not prescribed or clearly prescribed, and cannot be determined in accordance with Article 61 hereof, the hirer shall make payment at the time of the hiree‘s delivery of the work product; where the work product is partially delivered, the hirer shall make payment accordingly.
Article 264 Hiree‘s Possessory Lien in Case of Non-Payment
Where the hirer fails to pay the remuneration or cost of materials, etc. to the hiree, the hiree is entitled to a possessory lien on the work product completed, except otherwise agreed by the parties.
Article 265 Hiree‘s Obligation of Due Care for Materials and Work Product
The hiree shall keep the materials supplied by the hirer and the completed work product with due care, and shall be liable for damages in case of any damage or loss due to improper care.
Article 266 Hiree‘s Confidentiality Obligations
The hiree shall keep the relevant information confidential as required by the hirer, and may not retain any replica or technical material without permission by the hirer.
Article 267 Liability of Joint Hirees
Joint hirees are jointly and severally liable to the hirer, except otherwise agreed by the parties.
Article 268 Hirer‘s Termination Right Subject to Indemnification
The hirer may terminate the contract of hired work at any time, provided that it shall indemnify the hiree for its loss as a result, if any.
Chapter Sixteen: Contracts for Construction Projects
Article 269 Definition of Contract for Construction Project
A contract for construction project is a contract whereby the contractor performs project construction, and the developer pays the price.
Contracts for construction projects include contracts for survey, design, and construction.
Article 270 Writing Requirement
A contract for construction project shall be in writing.
Article 271 Tendering Process in Construction Project
Tendering for a construction project shall be conducted in an open, fair and impartial manner in accordance with the relevant laws.
Article 272 Contracting and Subcontracting in Construction Projects
The developer may enter into a contract for construction project with a prime contractor, or enter into contracts for survey, design, and construction with the surveyor, designer, and constructor respectively. The developer may not divide a construction project which should be completed by one contractor into several parts and contract them out to several contractors.
Subject to consent by the developer, the prime contractor or the contractor for survey, design, or construction may delegate part of the contracted work to a third person. The third person and the prime contractor or the contractor for survey, design, or construction shall be jointly and severally liable to the developer in respect of the work product completed by such third person. The contractor may not assign in whole to any third person the contracted construction project, or divide the whole contracted construction project into several parts and separately assign each part to a third person under the guise of sub-contracting.
The contractor is prohibited from sub-contracting any part of the project to an entity not appropriately qualified. A sub-contractor is prohibited from further sub-contracting its contracted work. The main structure of the construction project must be constructed by the contractor itself.
Article 273 Major Stat, e Construction Projects
A contract for a major state construction project shall be concluded in accordance with the procedure prescribed by the state and in compliance with the state-approved documents such as the investment plan and feasibility studies report, etc.
Article 274 Terms of Contract for Survey or Design
A contract for survey or design includes terms such as the time limit for submission of the relevant basic information and documents (including budget estimate), the quality requirements, fees, and other conditions of cooperation, etc.
Article 275 Terms of Construction Contract
A construction contract includes terms such as the scope of the project, the construction period, the time for commencement and completion of any work to be commissioned in the interim, the quality of the project, the cost of the project, the time for delivery of technical materials, the responsibilities for the supply of materials and equipment, the appropriation of funds and settlement of account, inspection upon completion of the project, the scope and period of quality warranty, and cooperation between the parties, etc.
Article 276 Supervision of Construction Project
Where the construction project is subject to supervision, the developer shall enter into an agency appointment contract for project supervision with a project supervisor in writing. The rights, obligations and associated legal liabilities of the developer and supervisor shall be prescribed in accordance with the provisions hereof concerning agency appointment contracts and the provisions of other relevant laws and administrative regulations.
Article 277 Developer‘s Right to Inspect
Provided that the developer does not interfere with the normal operation of the contractor, it may inspect the progress and quality of the work at any time.
Article 278 Concealed Work
In the case of concealed work, the contractor shall give the developer notice for inspection prior to concealment. Where the developer fails to timely conduct inspection, the contractor may extend the relevant project milestones, and is entitled to claim damages for work stoppage or work slowdown, etc.
Article 279 Inspection of Completed Project; No Use Prior to Inspection
Upon completion of the construction project, the developer shall conduct acceptance inspection according to the construction drawings and specifications, and in accordance with the rules of construction inspection and quality inspection standard prescribed by the state. Once the construction project has passed the acceptance inspection, the developer shall pay the prescribed price and accept the construction project.
The completed construction project may be put into use only after it has passed the acceptance inspection; if the construction project has not been inspected or has failed the inspection, it may not be put into use.
Article 280 Developer‘s Remedies in Case of Non-compliant Survey or Design
Where the developer sustains any loss from construction delay due to non-compliance of the survey or design or due to delayed delivery of the survey or design documents, the surveyor or the designer shall continue to improve the survey or design, reduce or forgo the survey fee or design fee, and pay damages.
Article 281 Developer‘s Remedies in Case of Non-conforming Construction
Where the construction project fails to meet the prescribed quality requirements due to any reason attributable to the constructor, the developer is entitled to require the constructor to repair, re-construct or make alteration free of charge within a reasonable time. Where delivery of the project is delayed due to such repair, re-construction or alteration, the constructor shall be liable for breach of contract.
Article 282 Contractor Liable for Personal and Property Damage
Where the construction project caused personal injury and property damage during its reasonable usage period due to any reason attributable to the contractor, the contractor shall be liable for damages.
Article 283 Contractor‘s Remedies in Case of Developer‘s Failure to Provide Necessary Conditions
Where the developer fails to provide raw materials, equipment, site, funds, or technical information at the prescribed time and in accordance with the contractual requirements, the contractor may extend the relevant project milestones, and is entitled to claim damages for work stoppage or slowdown, etc.
Article 284 Contractor‘s Remedies in Case of Project Interruption Due to Reasons Attributable to Developer
If an ongoing project is stopped or delayed due to any reason attributable to the developer, the developer shall take the appropriate measures to make up or mitigate the loss, and shall indemnify the contractor for its loss and out-of-pocket expenses arising from resulting work stoppage, slowdown, reshipment, re-dispatch of mechanical equipment, and excess inventory of materials and assemblies, etc.
Article 285 Surveyor‘s Remedies in Case of Developer‘s Failure to Cooperate
Where in the course of survey or design, any repeating work, work stoppage or change of design occurs due to the developer‘s change of plan, the incorrect information provided by it, or its failure to provide the working conditions necessary for the survey or design at the prescribed time, the developer shall increase the fees in light of the actual amount of work done by the surveyor or designer.
Article 286 Contractor‘s Remedies in Case of Developer‘s Failure to Pay Price
If the developer failed to pay the price in accordance with the contract, the contractor may demand payment from the developer within a reasonable period. Where the developer fails to pay the price at the end of such period, the contractor may enter into an agreement with the developer to liquidate the project, and may also petition the People‘s Court to auction the project in accordance with the law, unless such project is not fit for liquidation or auction in light of its nature.
The construction project price shall be paid in priority out of proceeds from the liquidation or auction of the project.
Article 287 Provisions Governing Contracts of Hired Works Applicable
A matter not provided for in this Chapter shall be governed by the relevant provision governing contracts of hired works.
Chapter Seventeen: Carriage Contracts
Section One General Provisions
Article 288 Definition of Carriage Contract
A carriage contract is a contract whereby the carrier carries the passenger or cargo from the place of departure to the prescribed destination, and the passenger, consignor or consignee pays the fare or freightage.
Article 289 Common Carrier May Not Deny Reasonable Carriage Requirement
A common carrier may not deny any normal and reasonable carriage requirement by a passenger or consignor.
Article 290 Obligation of Carrier to Carry in Safe and Timely Manner
The carrier shall safely carry the passenger or cargo to the prescribed destination within the prescribed time or within a reasonable time.
Article 291 Obligation of Carrier to Travel by Prescribed Route
The carrier shall carry the passenger or cargo to the prescribed destination by the prescribed route or the normal route.
Article 292 Passenger‘s Remedies in Case of Carrier‘s Failure to Travel by Prescribed Route
The passenger, consignor or consignee shall pay the fare or freightage. Where the carrier failed to carry the passenger or the cargo by the prescribed or normal route, thereby increasing the fare or freightage, the passenger, consignor or consignee may refuse to pay any increased portion thereof.
Section Two Passenger Carriage Contracts
Article 293 Formation of Passenger Carriage Contract
A passenger carriage contract is formed upon the carrier‘s delivery of the passenger ticket to the passenger, except otherwise agreed by the parties or provided by the relevant usage.
Article 294 Carrier‘s Remedies in Case of Passenger‘s Failure to Pay Fare
The passenger shall board the mode of transportation with a valid passenger ticket. If the passenger boards without a ticket, travels beyond the prescribed destination, boards a class higher than the prescribed class, or boards with an expired ticket, he shall pay the fare retroactively, and the carrier may charge additional fare in accordance with the relevant stipulations. Where the passenger fails to pay the fare, the carrier may refuse to carry.
Article 295 Passenger‘s Failure to Board on Time
Where the passenger is unable to board the mode of transportation at the time prescribed on the passenger ticket due to any reason attributable to himself, he shall carry out the formality for ticket refund or reschedule within the prescribed period. Where the passenger delays in carrying out the relevant formality, the carrier may refuse to refund the fare, and is no longer obligated to carry such passenger.
Article 296 Carry-on Luggage
In the course of carriage, the passenger‘s carry-on luggage shall be within the prescribed limit. Where his luggage exceeds the prescribed limit on carry-on luggage, the additional luggage shall be checked in.
Article 297 Boarding with Prohibited Item
The passenger may not carry in person, or place in his luggage, any hazardous material which is flammable, explosive, toxic, corrosive, or radioactive, etc., or possibly endangers people or property on board, or an otherwise prohibited item.
Where the passenger violates the previous paragraph, the carrier may unload, destroy or turn over to the relevant authority the prohibited item. Where the passenger insists on carrying in person or placing in his luggage the prohibited item, the carrier shall refuse to carry.
Article 298 Carrier‘s Obligation to Inform
The carrier shall timely inform the passenger of any major cause preventing it from normal carriage, as well as precautions relating to transportation safety.
Article 299 Passenger‘s Remedies in Case of Delay
The carrier shall carry the passenger according to the time and carrier number prescribed on the passenger ticket. Where the carrier delays in carriage,

CONTRACT LAW OF P. R. CHINA 7

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