Relaxations to Contractual Privity and the Need for Third Party Rights in Chinese Contract Law
Posted: 20 Dec 2017
Date Written: December 14, 2017
This chapter discusses the principle of privity of contract and the operation of third party rights in Chinese law. For the sake of consistency and clarity, whenever the relevant parties are referred to, the terms ‘promisor’, ‘promisee’, and ‘third party’ are used throughout this chapter. In the following discussion, the writer addresses a distinctive element of Chinese law: the legislature’s affirmation of the principle of contractual privity in the absence of explicit recognition of third party rights. Many of the discussions in this chapter refer to academic debates, judicial practice, and comparative studies. Even so, without clear statutory backing, writing on third party rights in China is like ‘treading in the dark’. The upside to the story is that one cannot err seriously in depicting the Chinese law position due to the statutory lacunae in this area of law. The downside may be that the views expressed would generate heated academic debate or criticisms.
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