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(Adopted and Promulgated by the Second Session of the Ninth National People's
Article 123 Applicability of Other Laws
Where another law provides otherwise in respect of a certain contract, such
provisions prevail.
Article 124 Applicability to Non-categorized Contracts
Where there is no express provision in the Specific Provisions hereof or any
other law concerning a certain contract, the provisions in the General Principles
hereof apply, and reference may be made to the provisions in the Specific Provisions
hereof or any other law applicable to a contract which is most similar to such
contract.
Article 125 Contract Interpretation; Language Versions
In case of any dispute between the parties concerning the construction of a
contract term, the true meaning thereof shall be determined according to the
words and sentences used in the contract, the relevant provisions and the purpose
of the contract, and in accordance with the relevant usage and the principle
of good faith.
Where a contract was executed in two or more languages and it provides that
all versions are equally authentic, the words and sentences in each version
are construed to have the same meaning. In case of any discrepancy in the words
or sentences used in the different language versions, they shall be interpreted
in light of the purpose of the contract.
Article 126 Choice of Law in Foreign-related Contracts;
Contracts Subject to Mandatory Application of Chinese Law
Parties to a foreign related contract may select the applicable law for resolution
of a contractual dispute, except otherwise provided by law. Where parties to
the foreign related contract failed to select the applicable law, the contract
shall be governed by the law of the country with the closest connection thereto.
For a Sino-foreign Equity Joint Venture Enterprise Contract, Sino-foreign Cooperative
Joint Venture Contract, or a Contract for Sino-foreign Joint Exploration and
Development of Natural Resources which is performed within the territory of
the People's Republic of China, the law of the People's Republic of China applies.
Article 127 Role of Regulatory Authorities
Within the scope of their respective duties, the authority for the administration
of industry and commerce and other relevant authorities shall, in accordance
with the relevant laws and administrative regulations, be responsible for monitoring
and dealing with any illegal act which, through the conclusion of a contract,
harms the state interests or the public interests; where such act constitutes
a crime, criminal liability shall be imposed in accordance with the law.
Article 128 Dispute Resolution
The parties may resolve a contractual dispute through settlement or mediation.
Where the parties do not wish to, or are unable to, resolve such dispute through
settlement or mediation, the dispute may be submitted to the relevant arbitration
institution for arbitration in accordance with the arbitration agreement between
the parties. Parties to a foreign related contract may apply to a Chinese arbitration
institution or another arbitration institution for arbitration. Where the parties
did not conclude an arbitration agreement, or the arbitration agreement is invalid,
either party may bring a suit to the People's Court. The parties shall perform
any judgment, arbitral award or mediation agreement which has taken legal effect;
if a party refuses to perform, the other party may apply to the People's Court
for enforcement.
Article 129 Time Limit for Action
For a dispute arising from a contract for the international sale of goods or
a technology import or export contract, the time limit for bringing a suit or
applying for arbitration is four years, commencing on the date when the party
knew or should have known that its rights were harmed. For a dispute arising
from any other type of contract, the time limit for bringing a suit or applying
for arbitration shall be governed by the relevant law.
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