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(Adopted and Promulgated by the Second Session of the Ninth National People's
Article 251 Definition of Contract of Hired Work
A contract of hired work is a contract whereby the hiree completes certain work
as required by the hirer and delivers the work product, and the hirer pays the
remuneration.
Hired works include works such as processing, custom-made work, repair, reproduction,
testing, and inspection, etc.
Article 252 Terms of Contract of Hired Work
A contract of hired work includes terms such as the subject matter of hire,
quantity, quality, remuneration, method of hire, supply of materials, time of
performance, standard applicable to and method of acceptance inspection, etc.
Article 253 Use of Hiree's Own Resources; Delegation
of Main Task Subject to Consent
The hiree shall use its own equipment, skills and labor to complete the main
tasks, except otherwise agreed by the parties.
Where the hiree has delegated a main task of the hired work to a third person
for completion, it shall be responsible to the hirer for the work product completed
thereby; if the delegation was not approved by the hirer, the hirer may also
terminate the contract.
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
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