Business Law

I.Concepts and Features of Contract and Contract Law

A.Concept and Features of Contract

1. Concept of Contract

According to the provision of Article 2 of the Contract Law of People's

Republic of China (hereinafter referred to as Contract Law), contract is the agreement

in which natural persons, legal persons or other organizations with equal status

declare a common intention to establish, alter and terminate civil rights and

obligations.

Contract was once divided into agreement and contract. Agreement refers to the

civil legal act established by both parties' consensus with regard to opposite intentions,

such as sales agreement. Contract refers to the civil legal act established by two or

above three parties' consensus with regard to collateral intentions, such as partnership

contract. However, such division can no longer be seen in our current laws and the

two are collectively referred to as contract.

Contract has its broad and narrow meanings. In the broad sense, contract refers

to all agreements generating rights and obligations, such as labor contract,

administrative contract, civil contract, etc. Furthermore, civil contract may also be

divided into creditor's right contract, real right contract, intellectual property contract,

identity contract, personality right contract, etc. In the narrow sense, contract refers to

the agreement for involved parties with equal status to establish, alter and/or terminate

civil rights and obligations. The contract adjusted by the contract law is generally

confined to the contract of creditor's right, real right and/or intellectual property, etc.

2. Features of Contract

It can be seen from the concept of contract -- contract is the agreement in which

natural persons, legal persons or other organizations with equal status declare a

common intention to establish, alter and terminate civil rights and obligations that,

contract has the following legal features: