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CONTRACT LAW OF THE PEOPLE'S REPUBLIC OF CHINA

(Adopted and Promulgated by the Second Session of the Ninth National People's

Chapter Eleven      Gift Contracts

Article 185     Definition of Gift Contract
A gift contract is a contract whereby the donor conveys his property to the donee without reward and the donee manifests his acceptance of the gift.

Article 186     Revocation Prior to Transfer of Rights; Exception
Prior to the transfer of rights to the gift property, the donor may revoke the gift.
The previous paragraph does not apply to any gift contract the nature of which serves public interests or fulfills a moral obligation, such as disaster relief, poverty relief, etc., or any gift contract which has been notarized.

Article 187     Observance of Conveyance Procedure
Where conveyance of the gift property is subject to any procedure such as registration, etc. under the law, the relevant procedure shall be carried out.

Article 188     Donee's Right to Require Delivery in Certain Cases
In the case of a gift contract the nature of which serves public interests or fulfills a moral obligation, such as disaster relief, poverty relief, etc., or a gift contract which has been notarized, if the donor fails to deliver the gift property, the donee may require delivery.

Article 189     Liability of Donor for Misconduct or Gross Negligence
Where the gift property is damaged or lost due to any intentional misconduct or gross negligence of the donor, he shall be liable for damages.

Article 190     Gift May Be Subject to Obligations
A gift may be subject to obligations.
Where the gift is subject to obligations, the donee shall perform his obligations in accordance with the contract.

Article 191     Donor Not Liable for Defect; Exceptions
The donor is not liable for any defect in the gift property. Where the gift is subject to obligations, and the gift property is defective, the donor has the same warranty obligations as a seller to the extent of the prescribed obligations.
Where the donor intentionally omitted to inform the donee of the defect or warranted the absence of any defect, thereby causing loss to the donee, he shall be liable for damages.

Article 192     Circumstances Giving Rise to Revocation Right
Where the donee is in any of the following circumstances, the donor may revoke the gift:
(i)     seriously harming the donor or any immediate family member thereof;
(ii)    failing to perform support obligations owed to the donor;
(iii)   failing to perform the obligations under the gift contract.
The donor shall exercise his revocation right within one year after he became, or should have become, aware of the cause for revocation.

Article 193     Exercise of Revocation Right by Heir
Where the donor is deceased or incapacitated due to the donee's illegal act, his heir or legal agent may revoke the gift.
The heir or legal agent of the donor shall exercise the right of revocation within six months after he became, or should have become, aware of the cause for revocation.

Article 194     Remedies in Case of Revocation
Upon revocation of the gift, the person with the revocation right may claim restitution of the gift property from the donee.

Article 195     Economic Hardship Releases Gift Obligation
If the donor's economic situation has deteriorated significantly, thereby seriously impacting on his business operation or family life, he may be released from the gift obligations.

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