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Third Parties

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Chapter Summary

Before the Contract Law was adopted, the matters of third parties in China only appeared in conjunction with the assignment. The Contract Law expands the third parties to include those to or by whom a contract is performed. In addition, the Contract Law replaces the term "government authority" with the term "third parties" to cover in a general sense the situation where the non-performance is caused externally by a non-party. Under the Contract Law, the parties to a contract may agree to have the contract to be performed to a third party. According to Article 64 of the Contract Law, where the parties agree that the obligor performs the obligations to a third party, and the obligor fails to perform the obligations to the third party or the performance does not meet the terms of the contract, the obligor shall be liable to the obligee for the breach of contract.

Keywords: China; contract law; government authority; third parties

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