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Enforceability of Contracts

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Chapter Summary

The Contract Law is purposed to enforce the agreement, and the focus is on the voluntary undertakings of the two parties who make the contract, not simply on the promise made by one party or the other. A promise, however, is supported by moral argument and the enforceability of it is based on "an artificial virtue" or morality. For an agreement to be enforceable, there are several factors that are addressed in the Contract Law. As provided in the Contract Law, the principles that govern contract include "equality", "voluntariness", "fairness", "good faith", "legality", and "observance of contract obligations". In China, however, pre-contractual liability is accepted and provided as a special liability system that is employed to impose liability on the party who during contract negotiations violates good faith and causes the other party to suffer damages.

Keywords: China; contract law; contract obligations; enforceability; pre-contractual liability

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