Contract Violations Monitoring Approach

Original Language Title: 合同违法行为监督处理办法

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Read the untranslated law here: http://www.chinalaw.gov.cn/article/fgkd/xfg/gwybmgz/201102/20110200334096.shtml

Contract violations monitoring approach

    (Published October 13, 2010, State administration for industry and commerce, the 51st since November 13, 2010) first in order to maintain the market economic order, protection of national interests, public interests and the legitimate rights and interests of the parties, pursuant to the People's Republic of China contract law and the provisions of relevant laws and regulations, these measures are formulated.

    Second contract violations in these measures refers to natural persons, legal persons or other organizations to use the contract, to seek illegal interests for the purpose of acts in violation of laws and regulations and to these measures.

    Third parties, the contract shall abide by the laws, administrative regulations, and respect for social ethics and shall not disrupt social and economic order, undermining national interests and public interests.

    IV administration of industry and Commerce at all levels within the terms of reference, in accordance with relevant laws and regulations and these regulations, is responsible for monitoring the processing of contracts illegal.

    Article at all levels of Administration for industry and commerce shall exercise supervision and contract violations, investigation and guide implementation of combination of combining punishment with education, the implementation of administrative guidance, supervising and guiding the parties law, contract, to protect national interests and public interests.

    Article sixth contract following fraud must not be used:

    (A) falsification of contracts;

    (B) the fictional item qualification, or theft, fraudulent use of the name of another person enter into a contract;

    (C) fictitious contract or fictitious supply, attractive sales channels the conclusion and performance of the contract;

    (D) the release or the use of false information, attractive contract;

    (V) concealing important facts, lured by the other party to make a wrong declaration of contract, or to trick each other party to the contract;

    (F) no real capacity to fulfil, to perform small or partial performance of the contract contract method of luring the conclusion and performance of the other party of the contract;

    (G) terms of malicious setting of de facto unable to perform, and cause the other party to the contract;

    (H) the fabricating reasons to stop (terminate) contracts to defraud money or property;

    (IX) provide false security;

    (10) use other fraudulent means to the conclusion and performance of the contract.

    Article seventh party should not be used to contract the following harm national interests, public interests, behavior:

    (A) to bribery, intimidation and other means, to perform the contract to the detriment of national interests, public interests;

    (B) by malicious collusion means the conclusion and performance of the contract to the detriment of national interests, public interests;

    (C) illegal sale of prohibited or restricted the sale of the State property;

    (D) without good reason, does not meet national mandatory contract obligations;

    (E) other contract violations committed against national interests and public interests.

    Eighth no unit or individual may know or should know the circumstances, for a person to commit the offence provided for in article sixth, seventh, and provide accounts, licenses, stamps, and other facilities.

    Nineth business operators and consumers using standard terms of conclusion of the contract, in standard terms, the operator shall not absolve themselves of the following responsibilities:

    (A) liability for consumer personal injury caused;

    (B) consumer property damage caused intentionally or due to gross negligence of responsibility;

    (C) for the provision of goods or services shall bear the suretyship liability;

    (D) the breach of contract shall bear the liability for breach;

    (E) shall bear the responsibility.

    Tenth business operators and consumers using standard terms of conclusion of the contract, the operator shall not be in a format the consumer under the terms of the following responsibilities:

    (A) breach of contract or damages in excess of the statutory amount or a reasonable amount;

    (B) take risks should be borne by the providers of standard terms of business responsibilities;

    (C) according to the law and regulations should not be borne by the consumer's responsibility.

    Article 11th entering into contracts with consumers using standard terms, operators shall not be excluded from the standard terms consumers the following rights:

    (A) the right to change or terminate the contract in accordance with law;

    (B) the right to request payment of liquidated damages;

    (C) the right to request compensation for damage;

    (D) the right to interpret standard terms;

    (E) format articles disputed the right of litigation;

    (F) consumers should enjoy the other rights according to law.

    12th article party violation this approach sixth article, and seventh article, and eighth article, and Nineth article, and tenth article, and 11th article provides, legal regulations has has provides of, from its provides; legal regulations no provides of, business administration organ depending on its plot weight, respectively give warning, sentenced illegal proceeds amount three times times following, but highest not over 30,000 yuan of fine, no illegal proceeds of, sentenced 10,000 yuan following of fine.

    13th minor contract violations committed by the parties and corrected in a timely manner without causing harmful consequences, no administrative penalty according to law should be proactive measures to eliminate or mitigate harmful consequences, it should be a lighter or mitigated administrative penalty in accordance with law through supervision, guidance, to take the initiative to correct or terminate the contract violations in a timely manner, can light administrative punishment.

    14th in violation of these rules a suspected crime, industrial and commercial administrative organs shall, in accordance with the relevant provisions, and handed over to judicial organs for criminal responsibility.

    15th article this way by the State administration for industry and commerce is responsible for the interpretation. 16th these measures shall come into force on November 13, 2010.