Interpretations of the Supreme Peoples Court of Certain Issues Concerning the Application of the Contract Law of the Peoples Republic of China (Part One) Promulgation Date12-29-1999Effective RegionNATIONAL Promulgatorthe Supreme Peoples Court Document NoFa Shi 1999 No.19EffectivenessEffectiveEffective Date1999-12-29CategoryContract（Civil Law-Contract）Interpretations of the Supreme Peoples Court of Certain Issues Concerning the Application of the Contract Law of the Peoples Republic of China (Part One)Fa Shi 1999 No.19December 29, 1999The Interpretations of Supreme Peoples Courts on Certain Issues Concerning the Application of the Contract Law of the Peoples Republic of China (One) which were adopted at the 1090th Session of the Adjudication Committee of the Supreme Peoples Court on December 1, 1999 are now issued and shall be effective as of December 29, 1999.Pursuant to the Contract Law of the Peoples Republic of China (hereinafter referred to as the Contract Law), and with a view to facilitating the proper adjudication of contractual disputes, we hereby issue the following interpretations of certain issues concerning the application of the Contract Law by Peoples Courts:Article 1 Scope of Application of the LawArticle 1 Where a suit is brought in a Peoples Court in respect of a dispute arising out of a contract formed after the operative date of the Contract Law, the provisions of the Contract Law shall apply; where a suit is brought in a Peoples Court in respect of a dispute concerning a contract formed before the operative date of the Contract Law, except where otherwise provided herein, the provisions of the law in effect at the time shall apply, provided that where the law in effect at the time did not provide for the relevant matter, the applicable provisions of the Contract Law may be applied.Article 2 Where a contract was formed before the operative date of the Contract Law, but the prescribed time limit for performance extends beyond, or commences after, the operative date of the Contract Law, if a dispute arises out of its performance, the relevant provisions of Chapter Four of the Contract Law shall apply.Article 3 In determining the validity of a contract formed before the operative date of the Contract Law, if application of the law in effect at the time leads to its invalidation, but application of the Contract Law leads to affirmation of its validity, the Peoples Court shall apply the Contract Law.Article 4 After the Contract Law became operative, a Peoples Court may only invalidate a contract in accordance with laws adopted by the National Peoples Congress or its Standing Committee or administrative regulations adopted by the State Council, and may not invalidate a contract on the basis of any local statute or administrative rules.Article 5 Where a Peoples Court re-adjudicates a case on which a final judgment has been rendered, the Contract Law shall not apply. Article 2 Time Limits for ActionArticle 6 In a dispute arising out of a technology contract, where infringement of the right of a party occurred before the operative date of the Contract Law, if there was a lapse of more than one year between the date on which the party knew or should have known that its right was infringed and the operative date of the Contract Law, the Peoples Court will no longer enforce such right; where the lapse was less than one year, the time limit during which the party may bring a suit shall be two years.Article 7 In a dispute arising out of a technology import/export contract, where infringement of the right of a party occurred before the operative date of the Contract Law, if there was a lapse of more than two years between the date on which the party knew or should have known that its right was infringed and the operative date of the Contract Law, the Peoples Court will no longer enforce such right; where the lapse was less than two years, the time limit during which the party may bring a suit shall be four years.Article 8 The time period of one year referred to in Article 55, and the time period of five years referred to in Article 75 and Paragraph 2 of Article 104 of the Contract Law are fixed, and are not subject to the rules governing the suspension, termination or extension of a time limit for bringing an action.Article 3 Validity of ContractsArticle 9 Where as set forth in Paragraph 2 of Article 44 of the Contract Law, the relevant law or administration regulation provides that the effectiveness of a certain contract is subject to completion of the relevant approval procedure, or the relevant approval and registration procedures, if before completion of the court hearing by the parties in the trial of first instance, the parties still fail to complete the relevant approval procedure, or approval and registration procedures, as the case may be, the Peoples Court