中华人民共和国合同法

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中华人民共和国合同法


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ContractLawofthePeople'sRepublicofChina
GENERALPROVISIONS
CHAPTER1GENERALPROVISIONSCHAPTER2CONCLUSIONOFCONTRACTSCHAPTER3EFFECTIVENESSOFCONTRACTSCHAPTER4PERFORMANCEOFCONTRACTSCHAPTER
5MODIFICATION
AND
ASSIGNMENT
OF
CONTRACTS
CHAPTER6TERMINATIONOFTHERIGHTSANDOBLIGATIONSOFCONTRACTSCHAPTER7LIABILITYFORBREACHOFCONTRACTS
CHAPTER8MISCELLANEOUSPROVISIONSSPECIFICPROVISIONS
CHAPTER9CONTRACTSFORSALES
CHAPTER10CONTRACTSFORSUPPLYANDUSEOFELECTRICITY,WATER,GASORHEATINGCHAPTER11CONTRACTSFORDONATIONCHAPTER12CONTRACTSFORLOANSCHAPTER13CONTRACTSFORLEASE
CHAPTER14CONTRACTSFORFINANCIALLEASECHAPTER15CONTRACTSFORWORK
CHAPTER16CONTRACTSFORCONSTRUCTIONPROJECTS



CHAPTER17CONTRACTSFORTRANSPORTATIONSECTION1GENERALRULESSECTION
2
CONTRACTS
FOR
PASSENGER
TRANSPORTATION
SECTION3CONTRACTSFORGOODSTRANSPORTATIONSECTION
4
CONTRACTS
FOR
MULTI-MODAL
TRANSPORTATION
CHAPTER18CONTRACTSFORTECHNOLOGYSECTION1GENERALRULESSECTION
2
CONTRACTS
FOR
TECHNOLOGY
DEVELOPMENT
SECTION3CONTRACTSFORTECHNOLOGYTRANSFERSECTION4CONTRACTSFORTECHNICALCONSULTANCYANDTECHNICALSERVICECHAPTER19CONTRACTSFORSTORAGE
CHAPTER20CONTRACTSFORWAREHOUSINGCHAPTER21CONTRACTSFORCOMMISSIONCHAPTER22CONTRACTSFORBROKERAGECHAPTER23CONTRACTSFORINTERMEDIATIONSUPPLEMENTARYPROVISIONS



Article1ThisLawisformulatedwithaviewtoprotectingthelawfulrightsandinterestsofthepartiestocontracts,maintainingthesocialeconomicorderandpromotingtheprogressofthesocialistmodernizationdrive.
Article2AcontractinthisLawreferstoanagreementestablishing,modifyingandterminatingthecivilrightsandobligationsbetweensubjectsofequalfooting,thatis,betweennaturalpersons,legalpersonsorotherorganizations.
Agreementsinvolvingpersonalstatusrelationshipsuchasonmatrimony,adoption,guardianship,etc.shallapplytheprovisionsofotherLaws.
Article3Thepartiestoacontractshallhaveequallegalstatus.Nopartymayimposeitswillontheotherparty.
Article4Thepartiesshallhavetherightstobevoluntarytoenterintoacontractinaccordancewiththelaw.Nounitorindividualmayillegallyinterfere.
Article5Thepartiesshallabidebytheprincipleoffairnessindefiningtherightsandobligationsofeachparty.




Article6Thepartiesmustactinaccordancewiththeprincipleofgoodfaith,nomatterinexercisingrightsorinperformingobligations.
Article7Inconcludingandperformingacontract,thepartiesshallabidebythelawsandadministrativeregulations,observesocialethics.Neitherpartymaydisruptthesocio-economicorderordamagethepublicinterests.
Article8Assoonasacontractisestablishedinaccordancewiththelaw,itshallbelegallybindingontheparties.Thepartiesshallperformtheirrespectiveobligationsinaccordancewiththetermsofthecontract.Neitherpartymayunilaterallymodifyorrescindthecontract.
Thecontractestablishedaccordingtolawshallbeundertheprotectionoflaw.
CHAPTER2CONCLUSIONOFCONTRACTS
Article9Inconcludingacontract,thepartiesshallhaveappropriatecivilcapacityofrightandcivilcapacityofconduct.
Thepartiesmayconcludeacontractthroughanagentinaccordancewith



thelaw.
Article10Thepartiesmayconcludeacontractinwritten,oralorotherforms.
Wherethelawsoradministrativeregulationsrequireacontracttobeconcludedinwrittenform,thecontractshallbeinwrittenform.Ifthepartiesagreetodoso,thecontractshallbeconcludedinwrittenform.
Article11Thewrittenformsmeantheformswhichcanshowthedescribedcontentsvisibly,suchasawrittencontractualagreement,letters,anddata-telex(includingtelegram,telex,fax,EDIande-mails.
Article12Thecontentsofacontractshallbeagreeduponbytheparties,andshallcontainthefollowingclausesingeneral:
(1titleornameanddomicileoftheparties;
(2contractobject;
(3quantity;



(4quality;
(5priceorremuneration;
(6timelimit,placeandmethodofperformance;
(7liabilityforbreachofcontract;and
(8methodstosettledisputes.
Thepartiesmayconcludeacontractbyreferencetothemodeltextofeachkindofcontract.
Article13Thepartiesshallconcludeacontractintheformofanofferandacceptance.
Article14Anofferisaproposalhopingtoenterintoacontractwithotherparties.Theproposalshallcomplywiththefollowingstipulations:
(1Itscontentsshallbedetailedanddefinite;
(2Itindicatestheproposaloftheofferortobeboundincaseof



acceptance.
Article15Aninvitationforofferisaproposalforrequestingotherpartiestomakeofferstotheprincipal.Priceformsmailed,publicnoticesofauctionandtender,prospectusesandcommercialadvertisements,etc.areinvitationsforoffer.
Wherethecontentsofacommercialadvertisementcomplywiththetermsoftheoffer,itmayberegardedasanoffer.
Article16Anofferbecomeseffectivewhenitreachestheofferee.
Ifacontractisconcludedbymeansofdata-telex,andarecipientappointsaspecificsystemtoreceivethedata-telex,thetimewhenthedata-telexentersthesystemshallbethetimeofarrival;ifnospecificsystemisappointed,thetimewhenthedata-telexfirstentersanyoftherecipient'ssystemsshallberegardedasthetimeofarrival.
Article17Anoffermaybewithdrawn,ifthewithdrawalnoticereachestheoffereebeforeoratthesametimewhentheofferarrives.
Article18Anoffermayberevoked,iftherevocationreachestheofferee



beforeithasdispatchedanacceptance.
Article19Anoffermaynotberevoked,if
(1theofferorindicatesafixedtimeforacceptanceorotherwiseexplicitlystatesthattheofferisirrevocable;or
(2theoffereehasreasonstorelyontheofferasbeingirrevocableandhasmadepreparationforperformingthecontract.
Article20Anoffershallbenullandvoidunderanyofthefollowingcircumstances:
(1Thenoticeofrejectionreachestheofferor;
(2Theofferorrevokesitsofferinaccordancewiththelaw;
(3Theoffereefailstomakeanacceptanceatthetimewhenthetimelimitforacceptanceexpires;
(4Theoffereesubstantiallyaltersthecontentsoftheoffer.



Article21Anacceptanceisastatementmadebytheoffereeindicatingassenttoanoffer.
Article22Exceptthatitisbasedontransactionpracticesorthattheofferindicatesanacceptancemaybemadebyperforminganact,theacceptanceshallbemadebymeansofnotice.
Article23Anacceptanceshallreachtheofferorwithinthetimelimitfixedintheoffer.
Wherenotimelimitisfixedintheoffer,theacceptanceshallarriveinaccordancewiththefollowingprovisions:
(1Iftheofferismadeindialogues,theacceptanceshallbemadeimmediatelyexceptasotherwiseagreeduponbytheparties;
(2Iftheofferismadeinformsotherthanadialogue,theacceptanceshallarrivewithinareasonableperiodoftime.
Article24Wheretheofferismadeinaletteroratelegram,thetimelimitforacceptancecommencesfromthedateshownintheletterorfromthemomentthetelegramishandedinfordispatch.Ifnosuchdateisshown



intheletter,itcommencesfromthedateshownontheenvelope.Whereanofferismadebymeansofinstantaneouscommunication,suchastelephoneorfacsimile,thetimelimitforacceptancecommencesfromthemomentthattheofferreachestheofferee.
Article25Acontractisestablishedwhentheacceptancebecomeseffective.
Article26Anacceptancebecomeseffectivewhenitsnoticereachestheofferor.Ifanacceptanceneedn'tbenotified,itbecomeseffectivewhenanactofacceptanceisperformedinaccordancewithtransactionpracticesorasrequiredintheoffer.
Whereacontractisconcludedintheformofdata-telex,thetimewhenanacceptancearrivesshallapplytheprovisionsofParagraph2,Article16ofthisLaw.
Article27Anacceptancemaybewithdrawn,butanoticeofwithdrawalshallreachtheofferorbeforethenoticeofacceptancereachestheofferororatthesametimewhentheacceptancereachestheofferor.
Article28Whereanoffereemakesanacceptancebeyondthetimelimit



foracceptance,theacceptanceshallbeanewofferexceptthattheofferorinformstheoffereeoftheeffectivenessofthesaidacceptancepromptly.
Article29Iftheoffereedispatchestheacceptancewithinthetimelimitforacceptancewhichcanreachtheofferorinduetimeundernormalcircumstances,buttheacceptancereachestheofferorbeyondthetimelimitbecauseofotherreasons,theacceptanceshallbeeffective,exceptthat,theofferorinformstheoffereepromptlythatitdoesnotaccepttheacceptancebecauseitexceedsthetimelimitforacceptance.
Article30Thecontentsofanacceptanceshallcomplywiththoseoftheoffer.Iftheoffereesubstantiallymodifiesthecontentsoftheoffer,itshallconstituteanewoffer.Themodificationrelatingtothecontractobject,quality,quantity,priceorremuneration,timeorplaceormethodofperformance,liabilitiesforbreachofcontractandthesettlementofdisputes,etc.,shallconstitutethesubstantialmodificationofanoffer.
Article31Iftheacceptancedoesnotsubstantiallymodifiesthecontentsoftheoffer,itshallbeeffective,andthecontentsofthecontractshallbesubjecttothoseoftheacceptance,exceptasrejectedpromptlybytheofferororindicatedintheofferthatanacceptancemaynotmodifytheofferatall.




Article32Wherethepartiesconcludeacontractinwrittenform,thecontractisestablishedwhenbothpartiessignoraffixasealonit.
Article33Wherethepartiesconcludethecontractintheformofaletterordata-telex,etc.,onepartymayrequesttosignaletterofconfirmationbeforetheconclusionofthecontract.Thecontractshallbeestablishedatthetimewhentheletterofconfirmationissigned.
Article34Theplaceofeffectivenessofanacceptanceshallbetheplaceoftheestablishmentofthecontract.
Ifthecontractisconcludedintheformofdata-telex,themainbusinessplaceofthereceipientshallbetheplaceofestablishment.Ifnomainbusinessplace,itshabitualresidenceshallbeconsideredtobetheplaceofestablishment.Wherethepartiesagreeotherwise,theplaceofestablishmentshallbesubjecttothatagreement.
Article35Wherethepartiesconcludeacontractinwrittenform,theplacewherebothpartiessignoraffixasealshallbetheplacewherethecontractisestablished.



Article36Acontract,whichshallbeconcludedinwrittenformasprovidedforbythelawsandadministrativeregulationsorasagreeduponbytheparties,shallbeestablished,asthepartiesdonotusethewrittenform,butonepartyhasperformedtheprincipalobligationandtheotherpartyhasreceivedit.
Article37Acontract,whichisconcludedinwrittenform,shallbeeslablished,ifonepartyhasperformeditsprincipalobligationandtheotherpartyhasreceiveditbeforesignitureoraffixingwithaseal.
Article38IncasetheStateissuesamandatoryplanoraStatepurchasingordertaskbasedonnecessity,therelevantlegalpersonsorotherorganizationsshallconcludecontractsbetweentheminaccordancewiththerightsandobligationsasstipulatedbytherelevantlawsandadministrativeregulations.
Article39Wherestandardtermsareadoptedinconcludingacontract,thepartywhichsuppliesthestandardtermsshalldefinetherightsandobligationsbetweenthepartiesabidingbytheprincipleoffairness,requesttheotherpartytonotetheexclusionorrestrictionofitsliabilitiesinreasonableways,andexplainthestandardtermsaccordingtotherequirementoftheotherparty.




Standardtermsareclauseswhicharepreparedinadvanceforgeneralandrepeatedusebyonepartyandwhicharenotnegotiatiedwiththeotherpartyinconcludingacontract.
Article40WhenstandardtermsareunderthecircumstancesstipulatedinArticle52andArticle53ofthisLaw,orthepartywhichsuppliesthestandardtermsexemptsitselffromitsliabilities,weightstheliabilitiesoftheotherparty,andexcludestherightsoftheotherparty,thetermsshallbenullandvoid.
Article41Ifadisputeovertheunderstandingofthestandardtermsoccurs,itshallbeinterpretedaccordingtogeneralunderstanding.Wheretherearetwoormorekindsofinterpretation,aninterpretationunfavourabletothepartysupplyingthestandardtermsshallbepreferred.Wherethestandardtermsareinconsistentwithnon-standardterms,thelattershallbeadopted.
Article42Thepartyshallbeliablefordamagesifitisunderoneofthefollowingcircumstancesinconcludingacontractandthuscausinglossestotheotherparty:



(1disguisingandpretendingtoconcludeacontract,andnegotiatinginbadfaith;
(2concealingdeliberatelytheimportantfactsrelatingtotheconclusionofthecontractorprovidingdeliberatelyfalseinformation;
(3performingotheractswhichviolatetheprincipleofgoodfaith.
Article43Abusinesssecretthepartieslearninconcludingacontractshallnotbedisclosedorunfairlyused,nomatterthecontractisestablishedornot.Thepartywhocausestheotherpartytosufferfromlossesduetodisclosingorunfairlyusingthebusinesssecretshallbeliablefordamages.
CHAPTER3EFFECTIVENESSOFCONTRACTS
Article44Thecontractestablishedaccordingtolawbecomeseffectivewhenitisestablished.
Withregardtocontractswhicharesubjecttoapprovalorregistrationasprovidedforbythelawsoradministrativeregulations,theprovisionsthereofshallbefollowed.




Article45Thepartiesmayagreeonsomecollateralconditionsrelatingtotheeffectivenessofacontract.Thecontractwithentry-into-forceconditionsshallbeeffectivewhensuchconditionsareaccomplished.Thecontractwithdissolvingconditionsshallbenullandvoidwhensuchconditionsareaccomplished.
Tounfairlypreventtheconditionsfrombeingaccomplishedbyonepartyforitsowninterestsshallberegardedasthoseconditionshavebeenaccomplished.Tounfairlypromotingtheaccomplishmentofsuchconditionsbyonepartyshallberegardedasnon-accomplishment.
Article46Thepartiesmayagreeonaconditionaltimeperiodastotheeffectivenessofthecontract.Acontractsubjecttoaneffectivetimeperiodshallcomeintoforcewhentheperiodexpires.Acontractwithterminationtimeperiodshallbecomeinvalidwhentheperiodexpires.
Article47Acontractconcludedbyapersonwithlimitedcivilcapacityofconductshallbeeffectiveafterbeingratifiedafterwardsbytheperson'sstatutoryagent,butapureprofit-makingcontractoracontractconcludedwhichisappropriatetotheperson'sage,intelligenceormentalhealthconditionsneednotberatifiedbytheperson'sstatutoryagent.




Thecounterpartmayurgethestatutoryagenttoratifythecontractwithinonemonth.Itshallberegardedasarefusalofratificationthatthestatutoryagentdoesnotmakeanyexpression.Abonafidecounterparthastherighttowithdrawitbeforethecontractisratified.Thewithdrawalshallbemadebymeansofnotice.
Article48Acontractconcludedbyanactorwhohasnopowerofagency,whooverstepsthepowerofagency,orwhosepowerofagencyhasexpiredandyetconcludesitonbehalfoftheprincipal,shallhavenolegallybindingforceontheprincipalwithoutratificationbytheprincipal,andtheactorshallbeheldliable.
Thecounterpartmayurgetheprincipaltoratifyitwithinonemonth.Itshallberegardedasarefusalofratificationthattheprincipaldoesnotmakeanyexpression.Abonafidecounterparthastherighttowithdrawitbeforethecontractisratified.Thewithdrawalshallbemadebymeansofnotice.
Article49Ifanactorhasnopowerofagency,overstepsthepowerofagency,orthepowerofagencyhasexpiredandyetconcludesacontractintheprincipal'sname,andthecounterparthasreasonstotrustthatthe



actorhasthepowerofagency,theactofagencyshallbeeffective.
Article50Whereastatutoryrepresentativeoraresponsiblepersonofalegalpersonorotherorganizationoverstepshis/herpowerandconcludesacontract,therepresentativeactshallbeeffectiveexceptthatthecounterpartknowsoroughttoknowthathe/sheisoversteppinghis/herpowers.
Article51Whereapersonhavingnorighttodisposalofpropertydisposesofotherpersons'properties,andtheprincipalratifiestheactafterwardsorthepersonwithoutpowerofdisposalhasobtainedthepowerafterconcludingacontract,thecontractshallbevalid.
Article52Acontractshallbenullandvoidunderanyofthefollowingcircumstances:
(1AcontractisconcludedthroughtheuseoffraudorcoercionbyonepartytodamagetheinterestsoftheState;
(2MaliciouscollusionisconductedtodamagetheinterestsoftheState,acollectiveorathirdparty;



(3Anillegitimatepurposeisconcealedundertheguiseoflegitimateacts;
(4Damagingthepublicinterests;
(5Violatingthecompulsoryprovisionsofthelawsandadministrativeregulations.
Article53Thefollowingimmunityclausesinacontractshallbenullandvoid:
(1thosethatcausepersonalinjurytotheotherparty;
(2thosethatcausepropertydamagestotheotherpartyasaresultofdeliberateintentorgrossfault.
Article54Apartyshallhavetherighttorequestthepeople'scourtoranarbitrationinstitutiontomodifyorrevokethefollowingcontracts:
(1thoseconcludedasaresultofseriousmisunderstanding;
(2thosethatareobviouslyunfairatthetimewhenconcludingthe



contract.
Ifacontractisconcludedbyonepartyagainsttheotherparty'strueintentionsthroughtheuseoffraud,coercionorexploitationoftheotherparty'sunfavorableposition,theinjuredpartyshallhavetherighttorequestthepeople'scourtoranarbitrationinstitutiontomodifyorrevokeit.
Whereapartyrequestsformodification,thepeople'scourtorthearbitrationinstitutionmaynotrevokethecontract.
Article55Therighttorevokeacontractshallextinguishunderanyofthefollowingcircumstances:
(1Apartyhavingtherighttorevokethecontractfailstoexercisetherightwithinoneyearfromthedaythatitknowsoroughttoknowtherevokingcauses;
(2Apartyhavingtherighttorevokethecontractexplicitlyexpressesorconductsanacttowaivetherightafteritknowstherevokingcauses.
Article56Acontractthatisnullandvoidorrevokedshallhavenolegally



bindingforceeverfromtheverybeginning.Ifpartofacontractisnullandvoidwithoutaffectingthevalidityoftheotherparts,theotherpartsshallstillbevalid.
Article57Ifacontractisnullandvoid,revokedorterminated,itshallnotaffectthevalidityofthedisputesettlementclausewhichisindependentlyexistinginthecontract.
Article58Thepropertyacquiredasaresultofacontractshallbereturnedafterthecontractisconfirmedtobenullandvoidorhasbeenrevoked;wherethepropertycannotbereturnedorthereturnisunnecessary,itshallbereimbursedatitsestimatedprice.Thepartyatfaultshallcompensatetheotherpartyforlossesincurredasaresulttherefrom.Ifbothpartiesareatfault,eachpartyshallrespectivelybeliable.
Article59IfthepartieshavemaliciouslyconductedcollusiontodamagetheinterestsoftheState,acollectiveorathirdparty,thepropertythusacpuiredshallbeturnedovertotheStateorreturnedtothecollectiveorthethirdparty.
CHAPTER4PERFORMANCEOFCONTRACTS
Article60Thepartiesshallperformtheirobligationsthoroughly



accordingtothetermsofthecontract.
Thepartiesshallabidebytheprincipleofgoodfaithandperformtheobligationsofnotice,assistanceandmaintainingconfidentiality,etc.basedonthecharacterandpurposeofthecontractorthetransactionpractices.
Article61Where,afterthecontractbecomeseffective,thereisnoagreementinthecontractbetweenthepartiesonthetermsregardingquality,priceorremunerationandplaceofperformance,etc.orsuchagreementisunclear,thepartiesmayagreeuponsupplementarytermsthroughconsultation.Incaseofafailureindoingso,thetermsshallbedeterminedfromthecontextofrelevantclausesofthecontractorbytransactionpractices.
Article62Iftherelevanttermsofacontractareunclear,norcanitbedeterminedaccordingtotheprovisionsofArticle61ofthisLaw,theprovisionsbelowshallbeapplied:
(1Ifqualityrequirementsareunclear,theStatestandardsortradestandardsshallbeapplied;iftherearenoStatestandardsortradestandards,generallyheldstandardsorspecificstandardsinconformity



withthepurposeofthecontractshallbeapplied.
(2Ifthepriceorremunerationisunclear,themarketpriceoftheplaceofperformanceatthetimeconcludingthecontractshallbeapplied;ifthegovernment-fixedpriceorgovernment-directedpriceshallbefollowedinaccordancewiththelaw,theprovisionsofthelawshallbeapplied.
(3Iftheplaceofperformanceisunclear,andthepaymentiscurrency,theperformanceshallbeeffectedattheplaceoflocationofthepartyreceivingthepayment;ifrealestateistobedelivered,theperformanceshallbeeffectedattheplaceoflocationoftherealestate;incaseofothercontractobjects,theperformanceshallbeeffectedattheplaceoflocationofthepartyfulfillingtheobligations.
(4Ifthetimelimitforperformanceisunclear,theobligormayatanytimefulfilltheobligationstowardstheobligee;theobligeemayalsodemandatanytimethattheobligorperformstheobligations,butatimeperiodfornecessarypreparationshallbegiventotheobligor.
(5Ifthemethodofperformanceisunclear,themethodwhichisadvantageoustorealizethepurposeofthecontractshallbeadopted.



(6Iftheburdenoftheexpensesofperformanceisunclear,thecostshallbeassumedbytheobligor.
Article63Incaseswherethegovernment-fixedpriceorgovernment-directedpriceisfollowedinacontract,ifthesaidpriceisreadjustedwithinthetimelimitfordeliveryasstipulatedinthecontract,thepaymentshallbecalculatedaccordingtothepriceatthetimeofdelivery.Ifthedeliveryoftheobjectisdelayedandthepricehasrisen,theoriginalpriceshallbeadopted;whilethepricehasdropped,thenewpriceshallbeadopted.Intheeventofdelayintakingdeliveryoftheobjectorlatepayment,ifthepricehasrisen,thenewpriceshallbeadopted;whilethepricehasdropped,theoriginalpriceshallbeadopted.
Article64Wherethepartiesagreethattheobligorperformstheobligationstoathirdparty,andtheobligorfailstoperformtheobligationstothethirdpartyortheperformancedoesnotmeetthetermsofthecontract,theobligorshallbeliabletotheobligeeforthebreachofcontract.
Article65Wherethepartiesagreethatathirdpartyperformstheobligationstotheobligee,andthethirdpartyfailstoperformtheobligationsortheperformancedoesnotmeetthetermsofthecontract,



theobligorshallbeliabletotheobligeeforthebreachofcontract.
Article66Ifbothpartieshaveobligationstowardseachotherandthereisnoorderofpriorityinrespectoftheperformanceofobligations,thepartiesshallperformtheobligationssimultaneously.Onepartyhastherighttorejecttheotherparty'srequestforperformancebeforetheotherparty'sperformance.Onepartyhastherighttorejecttheotherparty'scorrespondingrequestforperformanceiftheotherparty'sperformancedoesnotmeetthetermsofthecontract.
Article67Wherebothpartieshaveobligationstowardseachotherandtherehasbeenanorderofpriorityinrespectoftheperformance,andthepartywhichshallrenderitsperformancefirsthasnotrenderedtheperformance,thepartywhichmayrenderitsperformancelatelyhastherighttorejecttheotherparty'srequestforperformance.Wherethepartywhichshallrenderitsperformancefirstviolatesthetermsofacontractwhilefulfillingtheobligations,thepartywhichmayrenderitsperformancelatelyhastherighttorejecttheotherparty'scorrespondingrequestforperformance.
Article68Oneparty,whichshallrenderitsperformancefirst,maysuspenditsperformance,ifithasconclusiveevidencethattheotherparty



isunderanyofthefollowingcircumstances:
(1Itsbusinessconditionsareseriouslydeteriorating;
(2Itmovesawayitspropertyandtakesoutitscapitalsecretlytoevadedebt;
(3Itlosesitscommercialcredibility;
(4Othercircumstancesshowingthatitlosesorispossibletolosethecapacityofcredit.
Whereapartysuspendsperformanceofacontractwithoutconclusiveevidence,itshallbeliableforthebreachofcontract.
Article69OnepartytoacontractwhichsuspendsitsperformanceofthecontractinaccordancewiththeprovisionsofArticle68ofthisLaw,shallpromptlyinformtheotherpartyofsuchsuspension.Itshallresumeitsperformanceofthecontractwhentheotherpartyprovidesasureguarantee.Afterthesuspensionoftheperformance,iftheotherpartydoesnotreinstateitscapacityofperformanceanddoesnotprovidewithasureguarantee,thepartysuspendingperformanceofthecontractmay



rescindthecontract.
Article70Iftheobligeedoesnotnotifytheobligoritsseparation,mergerorachangeofitsdomicilesoastomakeitdifficultfortheobligortoperformtheobligations,theobligormaysuspendtheperformanceofthecontractorhavetheobjectdeposited.
Article71Theobligeemayrejectanadvanceperformanceofthecontractbytheobligor,exceptthattheadvanceperformancedoesnotdamagetheinterestsoftheobligee.
Additionalexpensescausedtotheobligeebyadvanceperformanceshallbebornebytheobligor.
Article72Theobligeemayrejectthepartialperformanceofthecontractbytheobligor,exceptthatthepartialperformancedoesnotdamagetheinterestsoftheobligee.
Additionalexpensescausedtotheobligeebypartialperformanceshallbebornebytheobligor.
Article73Iftheobligorisindolentinexercisingitsduecreditor'sright,



thusdamagingtheinterestsoftheobligee,theobligeemayrequestthepeople'scourtforsubrogationinitsownname,exceptthatthecreditor'srightexclusivelybelongstotheobligor.
Thesubrogationshallbeexercisedwithinthescopeofthecreditor'srightoftheobligee.Thenecessaryexpensescausedtotheobligeebyexercisingsubrogationshallbebornebytheobligor.
Article74Iftheobligorrenouncesitsduecreditor'srightortransfersitspropertygratis,thusdamagingtheinterestsoftheobligee,theobligeemayrequestthepeople'scourttorevoketheobligor'sact.Iftheobligortransfersitspropertyatanobviouslyunreasonablelowprice,thusdamagingtheinterestsoftheobligee,andthetransfereeknowssuchsituation,theobligeemayrequestthepeople'scourttorevoketheobligor'sact.
Therightofrevocationshallbeexercisedwithinthescopeofthecreditor'srightoftheobligee.Thenecessaryexpensescausedtotheobligeebyexercisingtherightofrevocationshallbebornebytheobligor.
Article75Thetimelimitforexercisingtherightofrevocationshallbeoneyear,commencingfromthedaywhentheobligeeisawareorought



tobeawareofthecausesofrevocation.Iftherightofrevocationhasnotbeenexercisedwithinfiveyearsfromthedaywhentheactoftheobligortakesplace,therightofrevocationshallbeextinguished.
Article76Afteracontractbecomeseffective,thepartiesmaynotrejecttoperformtheobligationsofthecontractbecauseofmodificationofthetitleornameoftheparties,orchangeofthestatutoryrepresentative,theresponsiblepersonortheexecutivepersonoftheparties.
CHAPTER5MODIFICATIONANDASSIGNMENTOFCONTRACTS
Article77Acontractmaybemodifiedifthepartiesreachaconsensusthroughconsultation.
Ifthelawsoradministrativeregulationsstipulatethatacontractshallbemodifiedthroughtheproceduresofapprovalorregistration,suchprovisionsshallbefollowed.
Article78Ifthecontentsofthemodifiedcontractagreedbythepartiesareunclear,itshallbepresumedthatthecontractisnotmodified.
Article79Theobligeemayassign,whollyorinpart,itsrightsunderthe



contracttoathirdparty,exceptforthefollowingcircumstances:
(1Therightsunderthecontractmaynotbeassignedaccordingtothecharacterofthecontract;
(2Therightsunderthecontractmaynotbeassignedaccordingtotheagreementbetweentheparties;
(3Therightsunderthecontractmaynotbeassignedaccordingtotheprovisionsofthelaws.
Article80Anobligeeassigningitsrightsshallnotifytheobligor.Withoutnotifyingtheobligor,theassignmentshallnotbecomeeffectivetotheobligor.
Thenoticeofassignmentofrightsmaynotberevoked,unlesstheassigneeagreesthereupon.
Article81Iftheobligeeassignsitsrights,theassigneeshallacquirethecollateralrightsrelatingtotheprincipalrights,exceptthatthecollateralrightsexclusivelybelongtotheobligee.



Article82Aftertheobligorreceivesthenoticeofassignmentofthecreditor'srights,itmayclaimitsdemurinrespectoftheassignortotheassignee.
Article83Whentheobligorreceivesthenoticeofassignmentofthecreditor'srights,andtheobligorhasduecreditor'srightstotheassignor,andthecreditor'srightsoftheobligoraredueinprioritytotheassignedcreditor'srightsordueatthesametime,theobligormayclaimtooffseteachothertotheassignee.
Article84Iftheobligorassignsitsobligations,whollyorinpart,toathirdparty,itshallobtainconsentfromtheobligeefirst.
Article85Iftheobligorassignsitsobligationstoathirdparty,thenewobligormayclaimthedemurbelongingtotheoriginalobligorinrespectoftheobligee.
Article86Iftheobligorassignsitsobligationstoathirdparty,thenewobligorshallassumethecollateralobligationsrelatingtotheprincipalobligations,exceptthattheobligationsexclusivelybelongtotheoriginalobligor.



Article87Wherethelawsoradministrativeregulationsstipulatethattheassignmentofrightsortransferofobligationsshallgothroughapprovalorregistrationprocedures,suchprovisionsshallbefollowed.
Article88Onepartytoacontractmayassignitsrightsandobligationsunderthecontracttogethertoathirdpartywiththeconsentoftheotherparty.
Article89Ifonepartytoacontractassignsitsrightsandobligationsunderthecontracttogethertoathirdparty,theprovisionsofArticle79,Article81to83,andArticle85to87ofthisLawshallbeapplied.
Article90Ifonepartytoacontractismergedafterthecontracthasbeenconcluded,thelegalpersonorotherorganizationestablishedafterthemergershallexercisethecontractrightsandperformthecontractobligations.Ifonepartyisseparatedafterthecontracthasbeenconcluded,thelegalpersonsorotherorganizationsthusestablishedaftertheseparationshallexercisethecontractrightsorassumethecontractobligationsjointlyandseverally.
CHAPTER6TERMINATIONOFTHERIGHTSANDOBLIGATIONSOFCONTRACTS




Article91Therightsandobligationsofcontractsshallbeterminatedunderanyofthefollowingcircumstances:
(1Thedebtobligationshavebeenperformedinaccordancewiththetermsofthecontract;
(2Thecontracthasbeenrescinded;
(3Thedebtshavebeenoffsetagainsteachother;
(4Theobligorhasdepositedtheobjectaccordingtolaw;
(5Thedebtobligationshavebeenexemptedbytheobligee;
(6Thecreditor'srightsanddebtobligationsareassumedbythesameperson;or
(7Othercircumstancesforterminationasstipulatedbythelawsoragreeduponbythepartiesinthecontract.
Article92Whentherightsandobligationsofcontractsareterminated,



thepartiestoacontractshall,abidingbytheprincipleofgoodfaith,performsuchobligationsasmakinganotice,providingassistanceandmaintainingconfidentialityaccordingtotransactionpractices.
Article93Acontractmayberescindedifthepartiestothecontractreachaconsensusthroughconsultation.
Thepartiestoacontractmayagreeupontheconditionstorescindthecontractbyoneparty.Whensuchconditionsareaccompanised,thepartyentitledtorescindthecontractmayrescindit.
Article94Thepartiestoacontractmayrescindthecontractunderanyofthefollowingcircumstances:
(1Thepurposeofthecontractisnotabletoberealizedbecauseofforcemajeure;
(2Onepartytothecontractexpressesexplicitlyorindicatesthroughitsacts,beforetheexpiryoftheperformanceperiod,thatitwillnotperformtheprincipaldebtobligations;
(3Onepartytothecontractdelaysinperformingtheprincipaldebt



obligationsandfails,afterbeingurged,toperformthemwithinareasonabletimeperiod;
(4Onepartytothecontractdelaysinperformingthedebtobligationsorcommitsotheractsinbreachofthecontractsothatthepurposeofthecontractisnotabletoberealized;or
(5Othercircumstancesasstipulatedbylaw.
Article95Wherethelawsstipulateorthepartiesagreeuponthetimelimittoexercisetherighttorescindthecontract,andnopartyexercisesitwhenthetimelimitexpires,thesaidrightshallbeextinguished.
Wherethelawdoesnotstipulateorthepartiesmakenoagreementuponthetimelimittoexercisetherighttorescindthecontract,andnopartyexercisesitwithinareasonabletimeperiodafterbeingurged,thesaidrightshallbeextinguished.
Article96OnepartytoacontractshallmakeanoticetotheotherpartyifitadvancestorescindthecontractaccordingtotheprovisionsofParagraph2,Article93andArticle94ofthisLaw.Thecontractshallberescindeduponthearrivalofthenoticeattheotherparty.Thepartymay,



iftheotherpartydisagreestherewith,requestthepeople'scourtoranarbitrationinstitutiontoconfirmtheeffectivenessofrescindingthecontract.
Wherethelawsoradministrativeregulationsstipulatethattherescindingofacontractshallgothroughtheformalitiesofapprovalandregistration,theprovisionsthereofshallbefollowed.
Article97Ifacontracthasnotyetbeenperformed,itsperformanceshallbeterminatedaftertherescission.Ifithasbeenperformed,apartytothecontractmay,inlightoftheperformanceandthecharacterofthecontract,requestthattheoriginalstatusberestoredorotherremedialmeasuresbetaken.
Article98Theterminationoftherightsandobligationsofacontractmaynotaffecttheforceofthesettlementandclearanceclausesinthecontract.
Article99Wherethepartiestoacontracthavedebtsduemutuallyandthecategoryandcharacterofthedebtsarethesame,anypartymayoffsethisdebtagainsttheother'sone,exceptthatthedebtsmaynotbeoffsetaccordingtotheprovisionsofthelawsortothecharacterofthecontract.



Anypartyadvancingtooffsetthedebtsshallmakeanoticetotheotherparty.Suchnoticeshallbeeffectiveuponthearrivalattheotherparty.Theoffsetmaynotbeaccompaniedbyanyconditionsortimelimit.
Article100Wherethepartiestoacontracthavedebtsduemutuallyandthecategoryandcharacterofthedebtsaredifferent,thedebtsmaybeoffsetagainsteachotherifbothpartieshavereachedaconsensusthroughconsultation.
Article101Theobligormaydeposittheobjectifthedebtobligatconsaredifficulttobeperformedunderanyofthefollowingcircumstances:
(1Theobligeerefusestoacceptthemwithoutjustifiedreasons;
(2Theobligeeismissing;
(3Theobligeeisdeceasedandtheheirisnotyetdetermined,ortheobligeehaslosthisconductcapacityandtheguardianisnotyetdetermined;or
(4Othercircumstancesasstipulatedbylaw.



Iftheobjectisnotfittobedepositedorthedepositexpensesareexcessivelyhigh,theobligormay,accordingtolaw,auctionorselltheobjectanddepositthemoneyobtainedtherefrom.
Article102Aftertheobjectisdeposited,theobligorshall,exceptthattheobligeeismissing,makeanoticepromptlytotheobligeeortheobligee'sheirorguardian.
Article103Theriskofdamagetoandmissingoftheobjectafterbeingdepositedshallbebornebytheobligee.Duringtheperiodofdepositing,thefruitsgeneratedbytheobjectshallbelongtotheobligee.Thedepositexpensesshallbebornebytheobligee.
Article104Theobligeemayclaimthedepositedobjectatanytime.However,iftheobligeeisunderadebtduetotheobligorthedepositauthoritiesshallrefusehimtoclaimthedepositedobjectattherequestoftheobligor,beforetheobligeehasperformedhisdebtobligationsorprovidesaguaranty.
Therighttoclaimthedepositedobjectbytheobligeeshallbeextinguishedifithasnotbeenexercisedwithin5yearsasofthedateofdeposit.ThedepositedobjectshallbeownedbytheStatewithdeduction



ofthedepositexpenses.
Article105Iftheobligeeexemptstheobligorfromthedebtobligationswhollyorinpart,thewholeorpartoftherightsandobligationsofacontractshallbeterminated.
Article106Ifthecreditor'srightsanddebtobligationsareassumedbythesameperson,therightsandobligationsofacontractshallbeterminated,exceptforthoseinvolvingtheinterestsofathirdparty.
CHAPTER7LIABILITYFORBREACHOFCONTRACTS
Article107Whereonepartytoacontractfailstoperformthecontractobligationsoritsperformancefailstosatisfythetermsofthecontract,thepartyshallbearsuchliabilitiesforbreachofcontractastocontinuetoperformitsobligations,totakeremedialmeasures,ortocompensateforlosses.
Article108Whereonepartytoacontractexpressesexplicitlyorindicatesthroughitsactsthatitwillnotperformthecontract,theotherpartymaydemandittobeartheliabilityforthebreachofcontractbeforetheexpirayoftheperformanceperiod.




Article109Ifonepartytoacontractfailstopaythepriceorremuneration,theotherpartymayrequestittomakethepayment.
Article110Whereonepartytoacontractfailstoperformthenon-monetarydebtoritsperformanceofnon-monetarydebtfailstosatisfythetermsofthecontract,theotherpartymayrequestittoperformitexceptunderanyofthefollowingcircumstances:
(1Itisunabletobeperformedinlaworinfact;
(2Theobjectofthedebtisunfitforcompulsoryperformanceortheperformanceexpensesareexcessivelyhigh;or
(3Thecreditorfailstorequestfortheperformancewithinareasonabletimeperiod.
Article111Ifthequalityfailstosatisfythetermsofthecontract,thebreachofcontractdamagesshallbeborneaccordingtothetermsofthecontractagreeduponbytheparties.Ifthereisnoagreementinthecontractontheliabilityforbreachofcontractorsuchagreementisunclear,norcanitbedeterminedinaccordancewiththeprovisionsof



Article61ofthisLaw,thedamagedpartymay,inlightofthecharacteroftheobjectandthedegreeoflosses,reasonablychoosetorequesttheotherpartytobeartheliabilitiesforthebreachofcontractsuchasrepairing,substituting,reworking,returningthegoods,orreducingthepriceorremuneration.
Article112Whereonepartytoacontractfailstoperformthecontractobligationsoritsperformancefailstosatisfythetermsofthecontract,thepartyshall,afterperformingitsobligationsortakingremedialmeasures,compensateforthelosses,iftheotherpartysuffersfromotherlosses.
Article113Whereonepartytoacontractfailstoperformthecontractobligationsoritsperformancefailstosatisfythetermsofthecontractandcauseslossestotheotherparty,theamountofcompensationforlossesshallbeequaltothelossescausedbythebreachofcontract,includingtheinterestsreceivableaftertheperformanceofthecontract,providednotexceedingtheprobablelossescausedbythebreachofcontractwhichhasbeenforeseenoroughttobeforeseenwhenthepartyinbreachconcludesthecontract.
Thebusinessoperatorwhocommitsdefaultactivitiesinprovidingtotheconsumeranygoodsorserviceshallbeliableforpayingcompensation



fordamagesinaccordancewiththeLawofthePeople'sRepublicofChinaontheProtectionofConsumerRightsandInterests.
Article114Thepartiestoacontractmayagreethatonepartyshall,whenviolatingthecontract,paybreachofcontractdamagesofacertainamountinlightofthebreach,ormayagreeuponthecalculatingmethodofcompensationforlossesresultingfromthebreachofcontract.
Iftheagreedbreachofcontractdamagesarelowerthanthelossescaused,anypartymayrequestthepeople'scourtoranarbitrationinstitutiontoincreaseit;ifitisexcessivelyhigherthanthelossescaused,anypartymayrequestthepeople'scourtoranarbitrationinstitutiontomakeanappropriatereduction.
Ifthepartiestoacontractagreeuponbreachofcontractdamagesinrespecttothedelayinperformance,thepartyinbreachshallperformthedebtobligationsafterpayingthebreachofcontractdamages.
Article115Thepartiestoacontractmay,accordingtotheGuarantyLawofthePeople'sRepublicofChina,agreethatonepartypaysadeposittotheotherpartyastheguarantyforthecreditor'srights.Afterthedebtobligationsareperformedbytheobligor,thedepositshallbereturnedor



offsetagainsttheprice.Ifthepartythatpaysthedepositfailstoperformtheagreeddebtobligations,itshallhavenorighttoreclaimthedeposit.Ifthepartythatreceivesthedepositfailstoperformtheagreeddebtobligations,itshallreturntwicetheamountofthedeposit.
Article116Wherethepartiestoacontractagreeonbothbreachofcontractdamagesandadeposit,whenonepartyviolatesthecontract,theotherpartymaychoosetoapplythebreachofcontractdamagesclauseorthedepositclause.
Article117Incasethatacontractisnotabletobeperformedbecauseofforcemajeure,theliabilitiesshallbeexemptedinpartorwhollyinlightoftheeffectsofforcemajeure,exceptasotherwisestipulatedbylaw.Iftheforcemajeureoccursafteronepartyhasdelayedinperformance,theliabilitymaynotbeexempted.
ForcemajeureasreferredtointhisLawmeanstheobjectivecircumstancesthatareunforeseeable,unavoidableandinsurmountable.
Article118Onepartytoacontractthatisnotabletoperformthecontractbecauseofforcemajeureshallmakeanoticetotheotherpartypromptlysoastoreducetheprobablelossestotheotherpartyandprovide



evidencewithinareasonabletimelimit.
Article119Afteronepartyviolatesacontract,theotherpartyshalltakepropermeasurestopreventfromtheenlargementoflosses;iftheotherpartyfailstotakepropermeasuressothatthelossesareenlarged,itmaynotclaimanycompensationastotheenlargedlosses.
Thereasonableexpensespaidbythepartytopreventfromtheenlargementoflossesshallbebornebythepartyinbreach.
Article120Incasethatbothpartiesviolateacontract,theyshallbeartheliabilitiesrespectively.
Article121Onepartythatviolatesthecontractbecauseofathirdpartyshallbeliableforthebreachofcontracttotheotherparty.Thedisputesbetweenthesaidpartyandthethirdpartyshallbesettledaccordingtolawortheiragreement.
Article122Incasethatthebreachofcontractbyonepartyinfringesupontheotherparty'spersonalorpropertyrights,theaggrievedpartyshallbeentitledtochoosetoclaimtheassumptionbytheviolatingandinfringingpartyofliabilitiesforbreachofcontractaccordingtothisLaw,orto



claimtheassumptionbytheviolatingandinfringingpartyofliabilitiesforinfringementaccordingtootherlaws.
CHAPTER8MISCELLANEOUSPROVISIONS
Article123Ifthereareprovisionsasotherwisestipulatedinrespecttocontractsinotherlaws,suchprovisionsshallbefollowed.
Article124AnycontractwhichisnotaddressedexplicitlyintheSpecificProvisionsofthisLaworinotherlawsshallapplytheprovisionsoftheGeneralProvisionsofthisLaw.ThemostsimilarprovisionsintheSpecificProvisionsofthisLaworinotherlawsmaybeappliedmutatismutandis.
Article125Withregardtodisputesbetweenthepartiestoacontractarisingfromtheunderstandingofanyclauseofthecontract,thetrueintentionofsuchclauseshallbedeterminedaccordingtothetermsandexpressionsusedinthecontract,thecontentsoftherelevantclausesofthecontract,thepurposeforconcludingthecontract,thetransactionpracticesandtheprincipleofgoodfaith.
Wheretwoormorelanguagesareadoptedinthetextofacontractandit



isagreedthatbothtextsareequallyauthentic,itshallbepresumedthatthetermsandexpressionsinvariousversionshavethesamemeaning.Incasethatthetermsandexpressionsindifferentversionsareinconsistent,theyshallbeinterpretedaccordingtothepurposeofthecontract.
Article126Thepartiestoacontractinvolvingforeigninterestsmaychoosethelawapplicabletothesettlementoftheircontractdisputes,exceptasotherwisestipulatedbylaw.Ifthepartiestoacontractinvolvingforeigninterestshavenotmadeachoice,thelawofthecountrytowhichthecontractismostcloselyconnectedshallbeapplied.
ThecontractsforChinese-foreignequityjointventures,forChinese-foreigncontractualjointventuresandforChinese-foreigncooperativeexplorationanddevelopmentofnaturalresourcestobeperformedwithintheterritoryofthePeople'sRepublicofChinashallapplythelawsofthePeople'sRepublicofChina.
Article127Thedepartmentsofadministrationforindustryandcommerceandothercompetentdepartmentsshall,withinthescopeoftheirrespectivecompetenceandfunctions,beresponsibleforsupervisionoveranddealingwithillegalactsintakingadvantageofcontractstoendangerandharmtheStateinterestsandpublicinterests.Incasethatacrimeis



constituted,criminalresponsibilityshallbeinvestigated.
Article128Thepartiesmaysettletheirdisputesrelevanttothecontractthroughconciliationormediation.
Thepartiesmay,ifunwillingtosettletheirdisputesthroughconciliationormediationorfailingintheconciliationormediation,applytoanarbitrationinstitutionforarbitrationaccordingtotheirarbitrationagreement.Thepartiestoacontractinvolvingforeigninterestsmay,accordingtotheirarbitrationagreement,applyforarbitrationtoaChinesearbitrationinstitutionorotherarbitrationinstitutions.Ifthereisnoarbitrationagreementbetweenthepartiesorthearbitrationagreementisnullandvoid,theymaybringalawsuitbeforethepeople'scourt.Thepartiesshallperformthecourtjudgments,arbitrationawardsormediationdocumentswithlegaleffectiveness.Incaseanyrefusalinrespecttotheperformance,theotherpartymayrequestthepeople'scourtforexecution.
Article129Thetimelimitforactionbeforethepeople'scourtorforarbitrationbeforeanarbitrationinstitutionregardingdisputesrelatingtocontractsforinternationalsalesofgoodsandcontractsfortechnologyimportandexportshallbefouryears,calculatingfromthedateonwhichthepartyknowsoroughttoknowtheinfringementonitsrights.Thetime



limitsforactionbeforethepeople'scourtorforarbitrationbeforeanarbitrationinstitutionregardingothercontractsdisputesshallbeinaccordancewiththeprovisionsoftherelevantlaws.
Article130Asalescontractisacontractwherebythesellertransferstheownershipofanobjecttothebuyerandthebuyerpaysthepriceforit.
Article131OtherthanthoseasstipulatedinArticle12ofthisLaw,asalescontractmayalsocontainsuchclausesaspackagemanner,inspectionstandardsandmethod,methodofsettlementandclearance,languageadoptedinthecontractanditsauthenticity.
Article132Anobjecttobesoldshallbeownedbythesellerorofthatthesellerisentitledtodispose.
Wherethetransferofanobjectisprohibitedorrestrictedbythelawsandadministrativeregulations,theprovisionsthereofshallbefollowed.
Article133Theownershipofanobjectshallbetransferreduponthedeliveryoftheobject,exceptasotherwisestipulatedbylaworagreeduponbytheparties.



Article134Thepartiestoasalescontractmayagreethattheown-ershipshallbelongtothesellerifthebuyerfailstopaythepriceorperformotherobligations.
Article135Thesellershallperformtheobligationtodelivertothebuyertheobjectorthedocumentstotakedeliveryoftheobject,andtotransfertheownershipoftheobject.
Article136Thesellershall,accordingtothetermsofthecontractortransactionpractices,delivertothebuyerrelevantdocumentsandmaterialsotherthanthedocumentstotakedeliveryoftheobject.
Article137Whenanobjectsuchascomputersoftwarewithintellectualpropertyrightsissold,theintellectualpropertyrightsofsuchobjectshallnotbelongtothebuyerexceptasotherwisestipulatedbylaworagreeduponbytheparties.
Article138Thesellershalldelivertheobjectaccordingtotheagreedtimelimit.Ifatimelimitofdeliveryisagreedupon,thesellermaydeliveratanytimewithinthesaidtimelimit.
Article139Wherethereisnoagreementinthecontractbetweenthe


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