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Chapter1
AnswerstoSelf-Quizzes
1.F.Itregulatesbothhorizontalandverticallegalrelationship.
2.T.
3.F.Abusinesstransactionisinternationalifitssubject,object,orcontentsisacrossnational
borders.
4.F.TradeinserviceandIParealsoimportantpartofinternationalbusiness.
5.F.Whenstatesandtheirsubdivisionsconductcommercialactivities,theyarepartiesin
horizontallegalrelationship.
6.F.UNIDROITisanind印endenlIGO.
7.T.
8.F.ICSIDspecializesininvestor-stateinvestmentdisputes.
9.T.
10.F.WTOcreatesamultilateraltradingsystem.
11.F."Thethreesisters"informulatingprivatelawreferstoHCCH,UNIDROIT,andthe
UNCITRAL.
12.F.TheHCCHspecializesinharmonizingconflictoflaws.
13.T.
14.T.
15.F.JudicialinterpretationsissuedbytheSupremePeople'sCourtisalsoapartofnationallaw
inChina.
16.F.Freetradeareaisthefirst,alsoloweststageofeconomicintegration.
17.T.
18.T.
19.F.NAFTAisafreetradearea.
20.F.Customsrelatedtotrademustmeetthebehavioralelementandpsychologicalelementin
ordertobecomeinternationaltradecustoms.
21.F.TheIncoterms?isonlyusedintradeingoods.
22.T.
23.T.
24.F.Civillawsystemisbasedoncodes.
25.T.
26.T.
GuidingQuestions:
1.WhatarethedifferencesbetweentheCivilLawSystemandCommonLawSystem?
Answers:
LegalSystem
CivilLawSystemCommonLawSystem
c
StatusoflawIndependentofgovernmentSuperiortogovernment
Basedonspecific
LegalrulesBasedongeneralprinciples
circumstances
ScopePrivatelawPrivatelaw,publiclaw
BasicsourceCodesCaselaw
MostinfluencedbyLegislatorsJudges
ReasoningDeductiveInductive
ProceduralInquisitorialAdversarial
FactfinderJudgeJury
UseofcaselawasprecedentsRespectedRequired
Specialagencyorcategoryof
ConstitutionalreviewbyRegularcourts
courts
ReviewofgovernmentSpecialagencyorcategoryof
Regularcourts
agenciescourts
2.InGrantvAustralianKnittingMillsLtd[1936],isthecourtcorrectinfollowingthe
precedentofDonoghuevStevenson[1932]?
Answers:
(1)Whatisthedoctrineofprecedent?
Thedoctrineofprecedentrequiresthatthepreviousprecedentbefollowedbythelatercaseif
thebasicfactsoflatercasearesubstantiallysimilartotheprecedent.Buttheprecedentbinds
onlyonthecourtthatdecidedthecaseandonthecourtsofinferiorrankinthesamejudiciary
hierarchy.
(2)Towhatextent,arethefactsofGrantv.AustralianKnittingMillssimilartoDonoghuev.
Stevenson?
BasicfactsPrecedentLatercase
DonoghuevGrantvAustralianKnittingMills
Stevenson
PlaintiffMs.DonoghueMr.Grant
Plaintiff'sLegalidentityConsumerConsumer
Defendant'slegalidentityManufacturerManufacturer
SufferingsSickshockSkindisease
CauseofactionTortTort
DecisionNeighborprincipleFollowtheprecedent
Chapter2
AnswerstoSelf-Quizzes
1.False.Chinaisaunitarycountryandhasneitherfederalnorprovincecourtsystem.
2.False.TheUSSupremeCourthasdiscretiontohearjudgmentsappealedfromthehighest
courtinastate.
3.False.Chinahasthesystemof“fourlevelsandtwoinstancesoftrials/
4.False.Aforeignercanbesubjecttoinpersonaljurisdictionofacountryifthisindividual
physicallypresentwithinthecountryorconsenttothejurisdictionofthecountry.
5.True.
6.False.USlawhasnowrittenrequirement.
7.True.
8.True.
9.True.
10.False.Plaintiffscannotresistforumnonconveniensonthebasisofunfavorablesubstantive
lawinalternativeforums.
11.False.Courtsshouldconsidercomitywhengrantinganti-suitinjunction.Generallywhenthe
foreignproceedingsarevexatiousoroppressiveorwhentheywillotherwisecause
inequitablehardship,acourtmayissueananti-suitinjunction.
12.True.
13.True.
14.False.Anti-dumpingandanti-monopolyregulationsaremandatorylawsinChina.
15.False.Courtsinthetwocountriesmaynotinterprettheprincipleinthesameway.
16.True.
17.False.Recognitionisoftenconfinedtonon-monetaryjudgments.
18.False.InChina,recognitionandenforcementofforeignjudgmentscanbeconducted
accordingtotheprincipleofreciprocityandaccordingtotreatiesconcludedbyChina.
19.False.Currently,Chinesecourtsprefertheviewof''reciprocityinpractice//
20.False.TheUSdoesnotrequirereciprocitytorecognizeandenforceforeignjudgments.
However,inthefuture,theUSmayimposethereciprocityrequirementinorderto
encourageforeigncourtstorecognizeandenforceAmericanjudgments.
21.False.TheHagueChoiceofCourtConventionrequiresanexclusivechoiceofcourt
agreement.
22.True.
23.False.ChinamakesareservationonservicebypostwhenaccedingtotheHagueService
Convention.
24.True.
25.False.Generallyarbitrationproceedingsshouldnotbeopentothepublic.
26.True.
27.False.Adhocarbitrationisanarbitrationconductedwithouttheassistanceofanarbitral
institution.
28.True.
29.False.Theseatofarbitrationmaynotbethesameastheplaceofhearing.
30.False.Theprimarysourceofthetribunafspowersistheparties1arbitrationagreement.
31.True.
32.True.
33.False.Competence-Competencemeansthatanarbitraltribunalcandetermineitsown
jurisdiction.
34.False.Arbitrationproceduresmustcomplywiththefundamentalprinciplesofnaturaljustice
anddueprocess.
35.True.
36.True.
37.False.The1958NewYorkConventionregulatestherecognitionandenforcementof
non-ICSIDarbitralawards.
38.True.
39.True.
40.False.Ifanarbitralawarddealswithdisputesoutsidethescopeofarbitrationagreement,this
awardmaybepartiallyorwhollysetaside.
41.True.
42.False.ICSIDonlydealswithinvestor-statedisputes.
43.True.
44.True.
45.False.WTOAppellateBody'sdecisionisfinal.
46.True.
47.True.
GuidingQuestions:
Case1
QuestionA:
Answer
IftheCountryLisChina
PartFourSpecialProvisionsoftheCivilProceduresInvolvingForeignElementsofChineseCivil
ProceduralLawprovidesthat:ifalawsuitbroughtagainstadefendantwhohasnodomicilein
Chinaconcerningacontractdisputeorotherdisputesoverpropertyrightsandinterests,if:
?thecontractissignedorperformedwithinChina,
?theobjectoftheactioniswithinChina,
?thedefendanthasdetainablepropertywithinChina,or
?thedefendanthasitsrepresentativeagency,branch,orbusinessagentwithin
China,
thedefendantmaybeunderthejurisdictionofthepeople'scourtlocatedintheplacewherethe
contractissignedorperformed,thesubjectoftheactionislocated,thedefendant'sdetainable
propertyislocated,theinfringingacttakesplace,ortherepresentativeagency,branchor
businessagentislocated.
YoumayapplytheaboveChineselawtothefactsofthecasetoreachananswer.
2.IftheCountryListheUS
TheUScourtwillapplythe“minimumcontacts'"testtodeterminewhetherthecourtcanexercise
personaljurisdiction.Thecourtshouldconsider:
Whetherthecompanyhasperformedactsthatrelatetotheforumcountry;
Whetherthesuitisbasedonthoseacts,and
Whetherthecompanyhasindicatedbyitsconductthatitintendedtorelyonthebenefits
(suchasdoingbusiness)oftheforumcountry.
Whethertheexerciseofjurisdictionbeunfairandunreasonable,takingintoaccountthe
interestsofthedefendantandplaintiff,theforumcountryandotherstatesthatmayhave
aninterestinthematter.
YoushouldapplytheaboveUSlawtothefactsofthecasetoreachananswer.
3.Notably,courtsinChinaandtheUSmayuseforumnonconvenienstodismissthesuit.Discuss.
QuestionB:
Answer
Choiceoflawrulesfollowatwo-stepprocedure:
?First,ifthepartiestoadisputehaveconcludedachoiceoflawclause;
?Second,ifthepartieshavenotagreedastowhichlawshouldapply(eitherexpresslyor
impliedly),thenthecourtshoulddetermineforitselfwhichlawitshouldapplyby(1)
followingstatutorychoiceoflawprovisions,(2)determiningwhichcountryhasthemost
significantrelationshipwiththedispute,or(3)determiningwhichcountryhasthegreatest
interestintheoutcomeofthecase.
Inthiscase,partieshavenotmakeachoiceoflawclause,so
ChinesecourtwillfollowtheLawoftheApplicationofLawforForeign-relatedCivil
RelationsofthePRC.
TheUScourtwillfollowthemostsignificantrelationshipandapplythegovernmental
interesttest.
Youshouldcombinethefactsofthecasewiththeaboveguidancetoreachananswer.
Case2:
Answer
Anarbitrationagreementcaneitherbesignedbybothpartiesorincorporatedfromotherlegal
documents.Itisvalidaslongasitisinwriting.Inthiscase,Contract2makesreferencetoa
writingarbitrationclauseinContract1insteadofincludingoneinit.Itisundisputedthatthe
arbitrationclauseinContract1isvalid.ItremainsvalidwhenincorporatedintoContract2.
Therefore,thereisavalidarbitrationclauseinContract2.
Case3:
Answer:Chinashouldconsideradopt"/reciprocityinlaw“inrecognizingandenforcingforeign
judgments,because
?Reciprocityinpracticeissubstantiallyarevengeonajudgment-renderingcountrythat
deniesrecognitionandenforcementofforeignjudgments.However;therequestedcountry
revengesaprivatepartynotthejudgment-renderingcountryitself.Therefore,itrevengesa
wrongtarget,especiallywhenthewinningpartyofaforeignjudgmentisacitizenofthe
requestedcountry.
?Reciprocityinpracticeseldomsuccessfullypushesajudgment-renderingcountryto
recognizeandenforceajudgmentissuedbyarequestedcountry.Thereasonisthatdenying
recognitionandenforcementofforeignjudgmentsdoesnotseriouslyharma
judgment-renderingcountry.Therefore,therevengeishardtobesuccessful.
?Itisdifficulttoprovecourtsinajudgment-renderingcountryhaveeverrecognizedand
enforcedjudgmentsissuedbyarequestedcountry.
Chapter3:
AnswerstoSelf-Quizzes
1.False.Owner'spersonalliabilityisaveryimportantfactorinselectingtousewhichformof
businessorganization.
2.False.Anotherpurposeofregisteredcapitalrequirementistooffersomeprotectionto
creditorsincasethebusinessfails.
3.True.
4.False.
5.False.StartinginMarch2014,theminimumregisteredcapitalofRMB30,000isnolongera
legalrequirementinChina.
6.False.IntheU.S.,therequirementonRegisteredCapitalvariesfromstatetostate.
7.True.
8.True.
9.False.Onlysingle-individualownedenterprisecanhavebranchoffices;IICHcannot.
10.False.IICHcanoperateeitherunderatradenameorintheowner'sownname.
11.False.ToestablishaPartnershipEnterprise(eitherageneralpartnershiporalimited
partnership),onehastofiledocumentswithlocalgovernmentagenciesinChina.
12.False.Certainpersonscannotbegeneralpartnersinapartnershipenterprise,suchas
state-ownedentities,publiccorporations,non-for-profitenterprisesandpeopleholding
specialpositions,suchaspolice,prosecutors,orjudges.
13.False.Thepartnershipagreementforlimitedpartnersisprohibitedbylawtoallocateall
lossestocertainpartners,butisOKtoallocateallprofitstocertainpartners.
14.False.AlimitedpartnerinalimitedpartnershipinChinacan'tcontributelaboras
contribution.
15.False.Partnersinageneralpartnershipcannotcompetewiththegeneralpartnership's
business.
16.False.PartnersdonotneedtofilewiththeSecretaryofStatetoformageneralpartnership.
Aslongaspartnersassociatethemselvesasco-ownersandsharetheprofitsandloss
togethecageneralpartnershipcanbedeemedtobeformed.
17.True.
18.True.
19.False.Aformalwrittenpartnershipagreementisnotnecessarilyrequiredtoformageneral
partnership,aslongaspartnersassociatethemselvesasco-ownersandsharetheprofitsand
losstogether,ageneralpartnershipcanbeformed.
20.True.
21.True.
22.True.
23.True.
24.True.
25.True.
26.True.
27.False.ShareholdersofaLimitedLiabilityCorporationinChinacannotexceed50,and
initiatorsofaCorporationbySharecannotexceed200.
28.False.ForLimitedLiabilityCorporation,asitisaprivatecorporation,transferofsharesneeds
consentofothershareholders.ForaCorporationbyShare,asitisapubliccorporation,
sharescanbefreelytransferredandneedsnoconsentofothershareholders.
29.True.
30.True.
31.True.
32.True.
33.False.TheBusinessScopewillbeshownbothintheBusinessLicenseandtheArticlesof
Associations.
34.False.TheU.S.,notChina,requirescorporationstohaveaRegisteredAgent.
35.False.TheU.S.hasScorporationandCcorporationduetoitstaxcode,butChinadoesnot
haveScorporationandCcorporation.
36.False.CorporategovernancemattersarenormallygovernedbytheU.S.statelaws.
37.False.Thedoctrineof“PiercingtheCorporateVeil"imposesliabilityonshareholdersthat
abusetheseparatestatusofacorporation.Soifsuchshareholderisaparentcompanyof
suchcorporation,liabilitycanalsobeimposedontheparentcompany.
38.True.
39.False.Scorporationlimitsitsshareholderstonottoexceed75.
40.False.Thesharesofapubliccompanycanbeboughtorsoldatapublicsecuritiesmarket,
whilethesharesofaprivatecompanycannot.
41.False.ChinahasthelegalrequirementofBusinessScope,buttheU.S.doesnot.
42.True.ForChina,itisAdministrationofIndustryandCommerce,andfortheU.S.,itisthe
SecretaryofState.
43.False.ChinesecorporationsshallhaveSupervisor/sCommitteeorExecutiveSupervisor,but
notU.S.corporations.
44.False.TheBusinessJudgmentRuleisintendedtoprotectmanagement,suchasdirectors,
officers,ormanagers,fromliabilitiesarisingfromthemanagementdecisionstheymade,as
longasthosemanagementdecisionsareingoodfaithandwithreasonableskillsand
prudence.
45.No.ChinadoesnothaveLLCasaformofbusinessentity.China'sLimitedLiabilityCorporation
isnotthesameconceptasLimitedLiabilityCompanyintheU.S.
46.True.
47.True.
48.False.IncertainstatesintheU.S.,single-memberLLCisalsopermitted.
49.True.
50.True.
51.False.LLCintheU.S.isan"unincorporated"form,whileLimitedLiabilityCorporationisa
“corporate"form.
52.False.Branchofficedoesnothaveaseparatelegalstatus,anditsdebtsandobligationsare
ultimatelybornbyitsparentcompany.
53.True.
54.False.Onlyaforeign(non-Chinese)companycanestablishaRepresentativeOfficeinChina.A
Chinesecompanycanestablisharegularbranchoffice.
55.False.ARepresentativeOfficecanonlyengageinnot-for-profitactivitiesforitsforeignparent
company.
56.False.
57.True.
58.False.Whilethesharesofasubsidiaryarecontrolledbyitsparentcompany,thesubsidiaryis
alegalentityseparatefromitsparentcompany.
59.True.
60.True.Whenaparentcompany(astheshareholder)abusesthelimitedliabilityandusesthe
subsidiaryasashell,suchparentcompanycouldbeliableforthedebtsorobligationsofthe
subsidiaryunderthetheoryof"PiercingtheCorporateVeil.”
GuidingQuestions:
Case1:
QuestionA:
Answers:
1)IfXiaominglikestostartaone-manshop,hecanchooseSingle-ShareholderLimited
LiabilityCorporation,whichallowsXiaomingtolimittheliabilitytotheamountof
contributionheplanstomakefromhispersonalsavingsandneednottoworryaboutrisking
hispersonalapartmentorcarifthebusinessfails.Inaddition,itwillallowhimtooperate
branchofficesinthefuture.
2)IfXiaomingcanfindothershareholder(s),hecanchooseLimitedLiabilityCorporation.He
cancontributehisengineeringskillsascontributiontothecorporation.AndLimitedLiability
Corporationofferslimitedliabilityandcanestablishbranchofficeslateron.
3)XiaomingmayalsoconsiderLimitedPartnershipifheisabletofindotherpartners(whois
eitheranindividualoranentity)whoarewillingtoactasgeneralpartnersinalimited
partnership.PleasenotethatXiaomingcanonlyactaslimitedpartner;whosestatusoffers
limitedliability.However;thedrawbackisXiaomingcannotreallyactivelyparticipateinthe
managementoflimitedpartnership,andhecannotcontributehisengineeringtalentsor
skillsascontributionifhewants.ThisdrawbackmayimpedeXiaoming'sbusinessplanifhis
involvementislimited.
4)Soleproprietorship(eitherIndividualIndustrialandCommercialHouseholdor
Single-IndividualOwnedEnterprise)maynotworkforXiaoming,asthesoleproprietorship
hastheunlimitedpersonalliabilitythatdoesnotfitXiaoming'sneeds.
5)GeneralPartnershipmaynotworkforXiaoming,ashelikestheideaoflimitedliability,but
thepartnersingeneralpartnershipbearunlimitedliability.
QuestionB:
Answers:
1)IfXiaomingwantstodoone-manchop,hemayconsiderLimitedLiabilityCompanybutonly
ifthestateheplanstoregistertheLLCallowssingle-memberLLC.Somestatesdonotallow
single-memberLLC.
2)XiaomingcanalsoconsiderSCorporationasthesoleshareholder;butonlyifXiaomingisa
UScitizenorresidentalien(greencardholder).IfXiaomingisaChineseanddoesnotholda
USgreencard,hecanthenconsiderCCorporation,whichhasnolimitationofnationalityor
residencerequirement.
3)IfXiaomingisabletofindotherpartnerstoactasgeneralpartners,hecanchooseLimited
Partnershipandactasalimitedpartnerandenjoyslimitedliability.Buthisinvolvementin
managingthepartnershipmaybelimited.
4)Similarly,SoleProprietorshiporGeneralpartnershipmaynotworkforXiaomingduetothe
concernsofunlimitedliability.
Case2:
QuestionA:
Answers:
1)Asthedirectorforthecorporation,JohnandMarybotharechargedwithfiduciarydutyto
thecorporation,byactingingoodfaithandforthebestinterestofcorporation.
2)Johnviolatedthedutyofcarebyexploitingthebusinessopportunitythatbelongstothe
corporation,thusdamagingtheinterestofthecorporation,becausethecorporationcould
havehadtheopportunitytoexpandtotheadjacentspace.
3)Maryviolatedthefiduciarydutybynotexercisingduecaretothefinancialstatusofthe
corporationandnotdiligentlysupervisingthebusinessofthecorporation.
QuestionB:
Answers:
1)Johnabusedthecorporatestatus,byminglingthecorporatefundswithhispersonalneeds,
andmayassumeunlimitedliabilityunderthetheoryof"PiercingtheCorporateVeil/
2)Asthecorporationgoesinsolvent,BrianandScottwilllimittheirliabilitytotheirinvested
amount,butJohnwillneedtobeliableforthecorporation'sdebtsofUSD100,000dueto
theunlimitedliabilityimposedunderthe'TiercingtheCorporateVeil/
Chapter4:
AnswerstoSelf-Quizzes:
1.False.Contractualrelationisoneoflegalrelations,butviceversa.
2.True
3.False.Unenforceablecontractislegal,butenforceableasitisunabletobeevidenced
4.True.
5.True.
6.False.Oralcontractcouldbeeitherimpliedorexpressone.
7.False.Thecontractisnotabsolutelyformulatedunlessyourlegalintentionofcontractmaking
isobjectivelyclearjudgedbyareasonablethirdparty.
8.False.Commonlawshowsthatevenanalready-performedbusinesscontractcouldbe
renderednon-legal.Ifbothpartiesagreedtosubjectthecontracttohonor,ratherthanlaw.
9.False.Thecoupleinwedlockcouldmakealegallyvalidagreementbeforedivorce.
10.True.
11.False.Offeree'schangeinthecontentoftheoffermayresultinarejectiontotheoffer
(counter-offer),butalsomayresultinanoptiononlyfortheofferortowillinglyrecognizethe
changeofcontentifthechangeinnotmaterialasstipulatedinCISG.
12.True.
13.False.Itshouldbeacceptedwithinreasonabletime
14.False.
15.False.Offerandacceptanceofwhateverkindofformcouldformulatecontract.
16.False.Commenceruleisnotapplicabletooffer.
17.True.
18.True.
19.False.Postruleisnotapplicabletooffer.
20.False.Theexpiredacceptancewillbebecomeautomaticallyinvalideventheofferordoesnot
care.Thatis,thechangeoflegallyvalidacceptancedependsonlaw,notontheofferor's
personalopinion.
21.False.Thethirdpartyisnotentitletoacceptingtheofferasabilityofperformingthecontract
isnotthequalificationsetfortheformationofcontract
22.True.
23.False.B'sresponseisnotanacceptance,justahope.
24.False.Notabsolutely
25.True.
26.True.
27.False.Thistransactionappearsbeyondlegalcapacityof9yearchildanditisnotabusiness
fornecessityeither.
28.False.Notabsolutelyasamentallyunsoundpeopleisnotalwaysunsoundinhismind.
29.True.
30.False.Theactofdrugtakingisacrime,butthecontractmadebythedrugtakerisnotacrime,
whichshouldstillbelegallyprotectedintheprincipleoffairness.
31.True.
32.True.
33.False.Unilateralmistakerisstillexcusableiftheconsequentialcontractisinviolationof
fairness.
34.False.Ruleofnonestfactumrequiresboththemistakerbeingextremelydisabledand
fundamentalmistaken.
35.False.Inadditiontoit,unilateralmistakerequiresmistakemustbeseriousone.
36.True.
37.True.
38.True.
39.True.
40.True.
41.True.Threatperseisnotaduress.Lawsuitisregardedasgoodandlegalthreat
42.False.Itisnotaduressincontractualsense.
43.True.
44.True.
45.True.
46.True.
47.False.Economicabilityisthefactortoconsiderunconscionableconduct.
48.True.
49.False.TheChineselawcontractrequiressalesofgoodsbeingevidencedbyanybusinessform,
eitherBywritingorwitness.
50.True.
51.False.Thecorrespondenceforpaymentcheckup(對(duì)賬確認(rèn)函),debitconfirmation(債權(quán)確認(rèn)
書(shū)),arewrittenformsofcontractaccordingtotheChineselawandwellrecognizedby
Chinesecourtascontract
52.False.Breachduringthetimeofperformanceisnotanticipatorybreach.
53.False.Iftheanticipatorybreachdoesnotcausedamagetotheinnocentparty,noremedies
maybeavailable.
54.True.
55.True.
56.True.
57.True.
58.True.
59.False.Damagesareatermformonetarycompensation.
60.True.
61.True.
62.True.
63.False.Notunexceptionally.
64.True.
65.True.
66.True.
67.True.
68.False.Theinnocentparly'sexercisehisrighttorescindthecontractisoneofhischoices,he
maytreatthefundamentalbreachasnon-fundamentaloneandnottorescindthecontract.
69.False.Remedyisnotavailabletotheaggrievedifthebreachistheresultofforcemajeure
eventagreedinthecontractexemptingthebreachingpartyfromliability.
70.True.
71.True.
72.True.
73.True.
74.True.
75.True.
76.True.
77.False.Itisstillavailabletotheplaintiffanymore.
78.True.
79.True.
80.True.
81.True.
82.False.Remedyofspecificperformancemaygotogetherwithdamages
83.True.
84.True.
GuidingQuestions:
Case1:
ANSWER:
TheChinesecourtheldasfollows:
?AccordingtoChinesecontractlawthiscontractisnotvalid,thoughbothparties
havereachedanagreement.
?Itisinvalidbecausetobuyuniversityqualificationquotaisviolatingsocialpublic
interest,theprinciplesoffairness,justiceandopenness.Sothiscontractisan
illegalcontract,voidfromverybeginning.
?Mr.ChenwasnotjustifiedtokeeptheremainingmoneyCNY170,000andshould
returnittoMr.Xie,whichmustbeperformed30daysafterthisdecisionbecome
effective.
?MrXie'sclaimforinterestoftheprincipalofCNY170,000isrejectedbecauseXie
wasequallyfaultyformakingtheinvalidcontract
Case2:
ANSWER:
TheChinesecourtheldasfollows:
?Theconfirmation,althoughnotausualformofcontract,hassubjectmatter,
priceandothermaincontents.Soitshouldbedeemedascontract.
?Atthetimeofnegotiationtheconclusionofpricewasnotduetoanyformof
scamandbothpartieshadaequalfooting.WhethertheRMB200,000fora
websitewasobviousunfairdependsonthenormalpriceprevailinginthe
market.Astotheinformationofthemarketprice,accordingtoSeveral
ProvisionsontheEvidentialIssuesofChineseCivilProceduralLaw(最高人民,去
院關(guān)于民事訴訟證據(jù)的若干規(guī)定),thedefendantshouldprovideevidenceof
marketpricejustifyingitscharge.But,thedefendantunreasonablyfailedto
provide.Sothedefendantshouldtakeunfavorableconsequence.Theclaimof
obviousunfairnesswasthusestablished.
?Thecontractwastobeterminated,already
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