Adoption of the Chinese Civil Law Code: Key Takeaways for the Commodities Industry
The new Chinese Civil Code (the “Code”) has been passed by the 13th National People’s Congress on 28 May 2020 and is due to come into force on 1 January 2021. The Code has maintained the structure and main concepts of existing PRC laws, but seeks to enhance existing PRC laws by providing further clarification by way of the detailed articles drafted. The Code consists of 1,260 articles and seeks to regulate the various aspects of civil society, including contracts, torts, private property, etc.
The purpose of this article is to provide a (non-exhaustive) general overview to the key aspects regulated by the Code with a focus on the laws relating to (1) contracts (2) guarantees on debts, and (3) storage contracts for foreign companies carrying on businesses in China. We aim to highlight some key provisions foreign businesses operating in China should pay attention to when conducting their businesses in China under the enhanced civil law regime.
Please click here to read the full article.
Feel free to get in touch with your usual contact at Ince or any of the authors for more information.
Related news & insights
News / Court confirms issuer’s liability under letter of credit
22-11-2022 / Commodities & Trade
Heytex Bramsche GmbH v. Unity Trade Capital Ltd [2022] EWHC 2488 (Ch) The Court has rejected a finance company’s contention that the documents presented under a letter of credit (LC) that it had issued were discrepant, rendering the LC void. Among other things, the issuer had sought to argue that the standard UCP 600 terms that were incorporated into the LC had been modified and overriden by additional terms, such that the documents were discrepant. The Court, however, emphasised that clear notice would have to be given to effectively incorporate such additional terms which were a clear departure from the UCP 600 and which conflicted with the commercial nature of a LC. Here, any notice given was insufficient and the issuer remained liable under the terms of the LC.
News / Court rejects jurisdictional challenge in petroleum dispute
18-02-2022 / Commodities & Trade
Addax Energy S.A. v. Petro Trade Inc. [2022] EWHC 237 (Comm) In a dispute arising out of the supply of petroleum products, the English Court has dismissed a challenge to its jurisdiction, finding that the claimant supplier had a good arguable case that an English jurisdiction clause was incorporated into an alleged oral agreement by way of course of dealing. In doing so, the Court confirmed that the evidence required to establish a course of dealing need not be extensive or consistent to meet the relevant legal test.
News / EU Blocking Regulation, US sanctions and contractual termination – when sanctions and business collide
18-02-2022 / Commodities & Trade, Maritime
In a recent ruling, the European Court of Justice (“ECJ”) was asked to consider the interpretation of Article 5 of EC Regulation No. 2771/96 of 22 November 1996 (commonly referred to as the “Blocking Regulation”) in relation to the termination, by a German telecoms company, of a contract with a bank subject to US sanctions.
Insights / Court upholds validity of Notice of Arbitration in commodities dispute
12-01-2022 / Commodities & Trade
This commodities dispute highlights the importance of drafting a notice of arbitration carefully to ensure that it covers all the disputes that are intended to be referred to arbitration.
Insights / Tribunal’s findings in commodities dispute result in substantial injustice
04-08-2021 / Commodities & Trade
PBO v. DONPRO & others [2021] EWHC 1951 (Comm)
_itok-m7hOO51c.jpg)
Insights / Where’s my crude oil? Court upholds claim for return of monies paid under FOB contract
24-06-2021 / Commodities & Trade
BP Oil International Limited v. (1) Vega Petroleum Limited & (2) Dover Investments Limited [2021] EWHC 1364 (Comm)
_itok-9X5WYLo6.jpg)