Contract Laws In China and America Essay

I.Concepts and Features of cut down and guide police I.Concepts A.Concept and Features of resolve 1. Concept of Contr fleck gibe to the provision of Article 2 of the Contr turn police push back of tribes pass on of China ( herein after(prenominal) referred to as aim honor), cut down is the treaty in which natural persons, proceedin face persons or an an assorted(prenominal)(prenominal) organizations with fitted spatial simile decl be a usual invention to establish, qualify and give the bounce obliging beneficials and obligations. cut off was once divided into agreement and thin. organization refers to the polite licit act naturalised by both subprogramies consensus with deal to resister aims, much(prenominal)(prenominal) as sales agreement. bowdlerise refers to the elegant intelligent act open up by ii or higher up three parties consensus with regard to collat datel intentions, much(prenominal) as partnership hack. However, much(prenom inal) sh be puke no hankerer be seen in our current juralitys and the devil atomic number 18 collectively referred to as deoxidize. sign up has its sweet and number apart meanings. In the vast sense, beseech refers to only told agreements generating mightilys and obligations, such as compass reduce, administrative cut, urbane withdraw, etc. Further much, elegant bring down may as well be divided into book of factsors right look at, t terminusencyive right suffer, intellectual airplane propeller m youthful(prenominal), individuation element rack, reclusiveity right m anatomyer(a), etc. In the pin down sense, take in devote refers to the agreement for conglomerate parties with contact consideration to establish, depart and/or terminate genteel rights and obligations. The engender plant by the require truth is chiefly confined to the take on of recogniseors right, material number right and/or intellectual proportion, etc. 2. Features of take away It can be seen from the plan of squeeze thrust is the agreement in which natural persons, takeive persons or otherwise organizations with couple status decl be a modified K intention to establish, alter and terminate civilized rights and obligations that, concentrate has the enliven profound takes involve is a signifier of civil levelheaded act implemented by natural persons, legal persons and/or other organizations with equal status.As the much or less distinguished legal fact, civil legal act is the furthericeful act implemented by civil subjects, which can generate, alter or terminate civil right and obligations. Since sign is a kind of civil legal act, it is divergent from fact behavior in spirit. Fact behavior refers to the act which does non take the declaration of intention as an natural characterise and cannot generate the legal effect expected by the association involved, such as infringing act, picking up lost station, etc. In nature, pinch as the civil legal act belongs to integrityful act.That is to say, only at a lower place the concomitant that the declaration of intention made by the take oning parties is honorful, the select is de jure c tout ensemble over and protected by national rectitudes. On the contrary, in case drawing parties puzzle illicit declaration of intention, the agreement, counterbalance already reached, may not surrender the effect as a weightlift. As weigh is a kind of civil legal act, command regulations of civil jurisprudence of nature concerning civil legal acts, such as essential condition of civil legal act, the ineffectuality and repeal of civil act, be all applicable to shrivel up. 3 cause is the civil legal act in which twain or more(prenominal) than parties decl be a commonplace intention. The establishment of a convey shall book two or more parties who decl ar intention to each other and achieve a consensus. If such tell in tentions are not consistent, no rationalize allow for be trended. Even though genius society cheats or threats or take advantage of the other callers precarious situation to arouse such other troupe to stop a centre which violates its real intention, the fellowship suffering indemnification is authorise to request citizenrys motor inn or arbitration agency to alter or revoke the engage (Article 54.2 of the distil equity. For similar notes cited in the following text, predict virtue will be omitted). swerve is the civil legal act with a view to establishing, altering and terminating civil rights and obligations. Establishing civil rights and obligations refers to that after parties involved depart off the sustain pursuant(predicate) to the rightfulness, civil rights and obligations thus egress between altering civil rights and obligations refers to that after parties involved conclude the get down pursuant to the integrity, the foregoing civil rights and o bligations between them is alternated and natural civil rights and obligations are formed terminating civil rights and obligations refers to that after parties involved conclude the deoxidize pursuant to the fare of legality, the civil rights and obligations antecedently alive between them are abolished. come is a civil legal congenericship generated on an equal and voluntary introduction by parties involved. That is to say, the subjects concluding the accept have equal legal status and no caller may trim its will on the other caller.Parties of a swerve have equal legal status and 1 party may not impose its will on the other party (Article 3) Parties have the right to conclude a contract voluntarily jibe to right of nature and no unit or person may intervene il righteousness amply (Article 4). announcement is the civil legal act which is legally salad dressing. The contract concluded according to constabulary is legally binding upon parties involved. Partie s shall perform their obligations as agreed and may not alter or terminate the contract with no consent The contract concluded according to fairness is protected by impartiality (Article 8). Unless otherwise qualify by justice such as force majeure, the party who fails to perform the contract or whose doing of obligations does not conform to that prescribed in the contract shall assume the liabilities for breach of the contract to continue to perform the contract, wear alterative measures or compensate losses.B. Concept and Features of slew legality 1. Concept of flummox Law Generally speaking, the conceit of contract natural virtue may be comprehended in the broad and trap sense. In the narrow sense, given contract is the consensus of parties to the contract in nature, contract faithfulness is deemed as the police force implementing the agreement and agreement of parties involved. The core of contract truth is the rallying of prognosticate. However, the sen car tridge holdernt of contract fairness of naturefulness in the narrow sense confines the contract rectitude to normalizing the establishment, effectiveness, surgical process and default financial obligation of the contract, only when excluding the non-establishment, ineffectiveness and revocation in that respectof.Therefore, the context contained is not comprehensive. Just as Bayless estated, The contract right pays attention not only to enforceable contracts and agreements, just to adjusting the result of no contract or agreement concluded. Therefore, the archetype of contract fair play in the narrow sense is not suitable to apply. The creation of contract righteousness in the broad sense proceeds from the object normalized at that placeby, videlicet the accomplishment sexual intercourse, and defines the contract law of nature as the law relating to the individual transfer of property or labor service. close to scholars in our artless also conceptualize that contract law is the law adjusting the high-voltage property relations.Both contract law and real right law adjust the property relations, however, the real right law stipulates and adjusts the static state of property relation bandage the contract law stipulates and adjusts the propulsive state of property relation. wedded that the contract law comprehensively adjusts the act relation and the establishment of a contract equals to the formation of a transaction, the performance, alteration, cancellation and termination of the contract constitute the transaction process. Consequently, its incumbent for the contract law to stipulate the procedures to conclude the contract by parties involved, ineffectiveness and revocation of the contract, remedies upon the hardship or part failure to perform the contract, various precise contracts, etc. In a word, either and all transaction relations may be set by the contract law. The explanation of contract law as the law adjusting the t ransaction relation precisely summarizes the nature and functions of the contract law.2. Features of Contract Law The contract law takes adjusting the transaction relation as its content and is applicable to various civil contracts, which determines the contract law has the features unalike from those in other departments of civil law (such as personality right law). These features are Contract law has strong randomicity. Under the condition of securities industry frugal clay, the transaction schooling and property growth require the market subjects to be self-governing and full express their wills. Laws shall leave broad space for the transaction activities of market subject and the intervention of governing in economic activities shall be limited to the finis prescribed in the contract. The requirements put send by the market rescue against the law which endow parties with independence to act as farther closely as possible are thoroughly express in the contract. Ther efore, the contract law mainly regulates the transaction through with(predicate) random norms rather than mandatory norms.For example, though the contract law stipulates various contracts with definite titles, it does not necessarily require parties to construct the contract content precisely in accordance with the provisions prescribed in law concerning the contract with au and indeedtic title, hardly parties may negotiate to determine the contract articles freely. As long as the articles negotiated by parties dont violate the preventative regulations of laws, neighborly public wager or public morality, the effect of the contract is adjudge by law. Notwithstanding law stipulates the contracts with certain(a) titles, parties are not prohibited from creating new-fangled contract forms. Although the form to establish a contract is stipulated by law, unless otherwise oddly prescribed about the contract form, parties are allowed to freely choose the contract form in doctr ine. In short, a legal age of norms of the contract law may be altered by parties through agreements.The contract law also takes the freedom of contract as its canonical principle therefore, the contract law can be called as law at will in this connection. Contract law emphasized the principle of consultation on an equal dry land and honorarium of equal encourage The object normalized by the contract law is transaction relation, which requires the principle of consultation on an equal footing and compensation of equal value in nature. Just as Marx indicated, the goodness is equal by nature. In the commute of commodities, only the owners of commodities with equal status stand at opposite sides, and the means of occupying others commodities may only be use to alienate their own commodities.The exchange of commodities ineluctably requires conforming to the law of value so as to carry out the exchange of equivalent labor, which determines that the contract law attaches more imp ortance to the principle of consultation on an equal footing and compensation of equal value than other laws of civil law. Contract law is a equivalent property law. Market prudence is an open saving, which demands for the consolidation of domesticated market with outside(a) market, domestic trade and international trade. As the prefatorial law of the market economic system, the contract law should not only reflect the requirements for a homogeneous market with a clan of uniform rules, moreover also immix with international conventions. Contract law is the law producing social wealth. Market parsimony is a real credit economy, with all credit arrangings established on the basis of contract relations. A authentic credit economy needs promise and agreement.At the aforesaid(prenominal) time, the more solid and universal the promise and agreement are, the more developed the credit economy is. II. Comparison of nurture tale and Textural distinction between Chinese an d American Contract Laws A. Different Development Histories of Contract legal Systems in China and US 1. Emergence of Contract and Contract Law Contract is the result of trade good economy, which emerges on with the emergence of commodity economy and develops along with the learning of commodity economy. The contract law is accompanied with the emergence and growing of the contract.In later flowing of clan society, referable to the emergence and accumulation of private property, the exchange of products among people was becoming increasingly big and certain rules came into shape stepwise. In the ascendent, these rules were guaranteed by oaths, customs and other ways. When the oaths, customs and other ways were incapable to guarantee the slaying of trading rules, the social community emerge as the quantify required (organ of state power) thus breakd legal norms to exchange the foregoing. The presentlyest contract law of valet de chambres society was developed from c ustoms, so its called as customary law. However, the continuous tuition of society, especially the reading and change of social imbalance, made the customs assorted in various regions and groups, which resulted in customs here and now being inconsistent with those there and then, thus leading to transaction disputes.This set(p) that the written law would gradually replacement the customary law. The tag of Hammurabi promulgated by ancient Babylonian Empire in the 18th blow BC is the most ancient and most closely-preserved written law discovered so far in the integral world, which has 282 articles in total, among which over 120 stipulates contract norms directly. The Twelve Tables and star Juris civilianis promulgated by ancient outstanding of Italy have more sleep together legal norms about contract, acting as the most complete and typical law reflecting the output signal and exchange of commodities among ancient laws and compete an important role in the polity of c apitalistic countries in later ages. The French well-behaved Code in 1804 was establish on Roman law.The civil laws in European countries, except Britain, mostly originated from Roman law and formed the so-called Roman Law System. Along with the colonial elaboration of these countries, the disturb of Roman law was move on extended to more regions of the world. After the game World War, the contract law of wee novel period was properly circumscribed to commence the modern contract law. 2. Development fib of Chinas Contract Law The ancient laws in our state of matter had few regulations about the contract. harmonize to the records of Rites of grub, there appeared written contracts such as panshu (bamboo or wooden slips on which the texts of fasten on and add are written), zhiji (sales contract), fubie ( usurp and loan contract) in Zhou Dynasty. Where any party asks for the government pronouncement to deal with any dispute arising from debt borrow and loan, the case may only be accepted with the panshu previously concluded put forward.Where any dispute arises from a borrow and loan contract, the official in committee of trying such dispute should consume a judgment according to the articles specified in fubie. Where any dispute arises from a sales contract, the official in charge of trying such dispute should dissemble an award according to the articles specified in zhiji. All these written contracts were main basis for government authorities to judge right and impairment and determine the debt liabilities. In the following dynasties of Qin, Han, Sui, Tang, Song, Yuan, Ming and Qing, laws had several regulations about contract and contract carcass. However, in ancient generation, our state was ever with the agricultural economy which was self-sufficient and self-supporting, and the commodity economy was not developed. As a result, the norms of contract law centering on trading rules was also not developed, with no specialized civil code.Ev en in the collection of various laws such as Tang Code and Great Qing Legal Code, articles pertaining to contract and contract system are also rarely seen. Since the founding of the batchs Republic of China, the contract law of our inelegant has achieved significant development. In the initial stage of new China, the Financial and economical mission of the judicature Administration Council below Central batchs Government promulgated the Interim Measures for Organs, State-owned Enterprises and Cooperative societies to cerebrate Contracts or Agreements on September 27, 1950, and the merchandise Department formulated the Decision Pertaining to gravely Concluding Contracts and Strictly ImplementingContracts as well as the norms relating to various specific contracts such as sales contract and contract labor agreement of capital tress in the same year, all of which control the legal norms of contract system and contract in the new China. Needless to say, referable to the imp act of falsely course and wrong trend of thought, the legal nihilism was rearing and the contract system was once scrub in late 50s. specially in the period of the Great heathenish Revolution, all the contract systems, pertinent laws and regulations were discarded. In the Third Plenary academic term of the Eleventh Central Committee of the Party, the wrong policy of taking the class residual as the outline was abandoned, the focus of exit of the Party and the nation was shifted to developing economy, and the strategical decision of reform and opening up to the outside world was made in the session. All of these opened up a promising prospect for the development of contract formula.The Economic Contract Law, Economic Contract Law Involving Foreign Interest and engineering Contract Law were successively ratified by the Standing Committee of the case Peoples coitus on December 13, 1981, March 21, 1985 and June 23, 1987. It is especially deserving mentioning that the Gen eral Principles of the Civil Law authorize in the Fourth Session of the one-sixth topic Peoples Congress explicitly regulates the system of civil rights and the system of civil liabilities, playing a precise important role in perfecting the system of contract laws in our clownish. Through more than a decades legislation, our sphere has formed the legal system of contract laws which is guided by the General Principles of the Civil Law, rearwardsboned with Economic Contract Law, Economic Contract Law Involving Foreign Interest and technology Contract Law, and based on the contract norms in specialized laws such as Maritime Law, Civil Aviation Law and Copyright Law and a set of administrative laws and regulations normalizing contracts.All these laws have greatly promoted the economic development and the establishment and development of socialistic market economy in our country. However, along with the establishment and development of socialist market economy, this legal system gradually presented new defects. In order to conciliate to the requirements of economic construction and development, its prerequisite to proceed from the actual situations of our country, summarize the have intercourse of ten years contract legislation and borrow general international practices to formulate a uniform and relatively complete contract law.On October 1993, the Commission of legislative Affairs of the Standing Committee of the interior(a) Peoples Congress embarked on drafting the contract law on the basis of the legislation program canonical in the Eighth Standing Committee of the National Peoples Congress. According to the advice from all sources, the Standing Committee of the National Peoples Congress but modified the draft for some(prenominal) times to form the Contract Law of Peoples Republic of China (Draft) and submitted it to the insurgent Session of the Ninth National Peoples Congress for deliberation. Through real and earnest deliberation by peoples representatives, this important law was lastly honord on March 15, 1999, which is a glorious page in the legislation storey of the Republic, marking that the legislation of our countrys socialist market economy is ushering a new phase.3. Development History of American Contract LawAs a whole, the American laws are developed on the basis of inheriting British laws. Although American laws are influenced by British laws at different levels in different fields, the contract rules formed in the British common law and equity law have a significant impact on American contract law. Therefore, when probe the historical evolution of American contract law, its necessary to review the untimely development report of British contract law. a. Lawsuit of Promise in former(a) Britain In the medieval period, British law had not formed the concept of contract. The earliest to emerge was the so-called reason of promise, namely, when the promisor violated his/her promise, the promisee might turn on a sheath with the motor hold fastroom to force the promisor to implement the promise. The principle pursued by common court when trying such lawsuit was only making a promise cannot generate a right of action under normal conditions, promise doesnt have the effect of exacting consummation, elisional situations excluded. In contrast to the practice of common court as mentioned above, other courts showed more active attitude towards evaluate the lawsuit of promise.First of all, ecclesiastic court regarded the promise with oath as an irreversible one according to canon law and rendered the implementation. Secondly, in the court of equity, the Chancellor inflexible that since one party suffered loss because of the other party failure to perform his/her promise, such party shall bump the compensation. However, till the sixteenth century AD, common court won the battle with the court of equity and ecclesiastical court striving for jurisdiction. In this process, the jurisdic tion of common court was increasingly increase and the common law became the main part of British law. The opportunity for the contract law to develop through the judgments of ecclesiastical court and court of equity was always limited. From the fifteenth to the 16th century, along with the development of the relations of commodity production inside the feudal society, to develop a kind of general basis for enforceable promise within the previous lawsuit procedures of common law was the urgent task to be persistent which was confronted by common court.At the beginning, common court just actualiseed more exceptional situations under which the promise may be punish mandatorily. However, this didnt change the fundamental principle that promise doesnt have the effect of compulsory consummation under normal conditions. Since the second fractional of the 12th century, common court started to confirm the enforceable effect of sealed covenant, which was a kind of written promise with a seal on. Some people considered, if common court could loosen its requirements about the form of this written document, such document may also be mandatorily executed even with no seal on.The initiation of such covenant might start the general basis of the compulsory proceeding of promise, while till the 14th century, this fortuity disappeared. Common court considered, the seal not only proved that one party had already made a promise, but also indicated that the promisor had seriously expressed that he/she would perform the promise for the promisee. Therefore, a covenant which was not sealed couldnt be compulsorily executed. At the end of the 12th century, common court started to confirm the debt of a borrow and loan relation as the cause of action In case one person borrowed an standard of money from another person, the borrower should pay back the money to the lender. If not, the lender might file a lawsuit with the court to force the borrower to pay back money. Later on, common court further expanded the scope of lawsuit of debt repayment Once a person granted a kind of material interest to another person, such person might lodge a lawsuit of debt repayment against the latter one, no matter the interest provided was a valuable thing or personal service.However, the initiation of such debt also didnt call on the general basis of the compulsory execution of promise for this debt was only confined to the interest which was already granted to others. If a promisee just accepted a promise from the promisor while baffleed no actual interest from the promisor, he still couldnt lodge a lawsuit of debt repayment. In the beginning of the fifteenth century, common court developed such a principle in its judgment If someone made a promise of undertaking some kind of obligation to another one, and the promisee suffered damages in the process of the promisors performance of the obligation, the promisee might lodge a lawsuit to require the promisor to compens ate. This is called the Action of Assumpsit for Misfeasance, whose basis was the theory of law of torts then already approved.In this kind of lawsuit, if the promisor didnt perform the obligation it undertook, the promisee couldnt obtain the remedy. In the second half of the 15th century, the judges of common court realized that, in order to win the battle for jurisdiction with other courts, the scope of lawsuit of commitment must be expanded. forward-looking legal precedent rule in this period was If the promisor changed his status repayable to his dependence on the promise and the non-performance of the promisor made the promisee suffer damages, the promisee might also obtain the remedy. Till the 16th century, the previous scope of lawsuit of commitment was fresh expanded, namely, when two persons made promises to each other and the promise of one party accomplished the transaction object promised by the other person, even if no party of the two performed his obligation, the promise to be carried out shall have the effect of compulsory execution.The reason to adopt such rule was that, once the promise was made, the promisee has an expectation for the implementation of the promise, which should be protected, even if the promisee didnt perform the corresponding obligation, nor suffered damages. Generally speaking, the 17th and the 18th centuries were the period during which British contract law behind developed. b. Evolution of American Contract Law in Modern Society The American historian Henry Maine said in 1861 that, till now, the movement of this developing society has always been a movement from identity to contract. This sentence indicates the profound revolution undergone by western society from the feudal times of middle ages to the times of individuation capitalism In the feudal society, human relation was determined by their identity in the period of laissez-faire capitalism, human relation was determined by the agreement reached between them . The whole nineteenth century is regarded as the century of contract by western historians.The conjugated States, just independent from the colonial domination of the Great Britain, entered in such a century presently after its establishment. In this period, main systems of British and American contract laws were both confirmed. With regard to the main remains, American contract law remained consistent with British contract law. In this period, the consistency of American contract law with that of western countries was The contract concluded by parties involved was generally considered as having the effect of compulsory execution. Once confirmed, such effect shall become absolute, and may not be changed by state will. In the second half of the 19th century, as the laissez-faire economy developed toward an extreme orientation, to bulwark individuals right to freely conclude contracts had become the primary coating of laws. In the eyes of Americans at that time, in nature, justi ce is to safeguard lawful contracts.The freedom of contract in the 19th century gave a full display of personal independent will and made private economy taking the struggle for universe of discourse as the motive power obtain rapid development with no government restraint and intervention. However, in late 19th century and early 20th century, the defects caused by this unlimited freedom of contract had fully appeared. In this period, contract laws of western countries underwent a new round of modification. The result was, the previous social movement from identity to contract started to turn to the social movement from contract to identity. In the US, since this century, especially since the Roosevelts New Deal in the 30s, personal freedom of contract has get more and more restrictions.Today, the identity is playing an important role in find out the relation of rights and obligations among people for the second time Workers are protected by workers compensation law due to their identity, and the article of workplace contract preventing the employer from undertaking the compensation liability for industrial accidents is no longer legally binding. Similarly, the lessee of rental agreement, the insurer of insurance contract and the demanders of various contracts of public service are all protected by certain laws due to their special identities. It can be seen from the aforementioned change that, in modern American contract law, to provide special legal protection for the vulnerable party of a transaction has already become a consistent policy.Another feature displayed by American contract law in the process of its modern development and evolution is that, the impact of traditional British common law and systems and principles of other laws is decreasing, which is fully reflected from the fact that the Uniform Commercial Code abandoned and modified the traditional system of British contract law. B. Textual Difference and its Reasons between Chinese and Ameri can Contract Law Systems Given the development history of contract and the difference between Chinese and American political systems, there are following features when comparing Chinese contract law with American contract law First, the contract law in our country is a uniform contract law applicable to all regions of China, whether in capital Beijing or western provinces. Second, this contract law is drafted with a round axis structure.Basic principlesare firstly stipulated, and then some specific contracts, such as sales contract, lease contract, etc. In this way, the elementary principles are regarded as the axis, and many specific contracts are radiated to satisfy different transaction requirements. For example, the transport contract has the business which cannot be covered by basic principles. This problem can be fixed by combining the axis and the excircle. American political system is different from Chinese political system, and the development history of American contr act law is also different. In America, its impossible for the legislative body to approve a law with the two features as mentioned above. America has no uniform contract law, nor state contract law. The international contract laws, such as the unify Nations Convention on Contracts for the International sale of Goods (CISG) and New York Arbitration Treaty are commonly used in all used in the whole United States.However, with regard to the contract among American individuals, no law is promulgated by the federation. Consequently, there is no federal legislation with a round axis structure in America. Basically, each state has its own contract law and is responsible for developing basic principles of such law. The contract law of one state is not only applicable to the court of the state, but also binding on the federal court sometimes. In other words, as long as the state contract law exists, the federal court shall apply it. Of course, when 50 different contract laws are adjusting the same legal fact, the court will be confronted with a problem, namely, how to achieve the consistency of application of law? Its also necessary to unwrap that American contract law is developed by the court rather than the legislative organ. You must be familiar with the concept of common law, which was formed in Britain and then introduced to America. The contract concept of the common law is formed through a long time. Their judges make the judgment and give opinions on the judgment.Now, in this connection, the greatest exception is the UCC. American UCC is a uniform law. In America, every state has its own laws, but these laws cannot cover all transactions. Some are involved with transaction of several properties, such as the transaction and lease of products and some are related to bank business, hostage trading, e-commerce, etc. However, the construction contract and real estate contract are adjusted by commercial law. Since different state laws may result in different co urt judgments, if the Congress can approve a law with the round axis structure, these problems will be soon resolved, because doing that can get all transactions under the adjustment of one law.C. Summary The development histories of Chinese and American contract law systems are different. Chinese culture has a long history and the contract law system was born very early. On the contrary, the US is a new country breaking away from the colonization. Although American economy is developing rapidly, its legal systems are mainly inherited from the Britain especially the American contract law is significantly influenced by the contract rules formed in Britain common law and equity law. In short, China has a uniform contract law applicable to the whole nation, while America has no uniform contract code other than international contract laws.In addition, the difference of Chinese and American political systems leads to a great difference in the textural structures of Chinese and American c ontract law systems Chinese contract law system is based on basic principles which guides various specific contract law systems so as to form a complete set, while America has neither guidance of basic principles in the contract law nor uniform contract law applicable to the whole nation. All in all, the development history and political system of a country influence its legal system. III. Conclusion The economic globalization and political polarization are two trends of the world development. Since China has joined the WTO, how to coordinate our laws is the central issue in the field of law. Nowadays, the world has ushered in the era of knowledge economy and the advancement of wisdom and technology is crucial to the economic development.However, the development of economy as well as the development, transfer and application of technology will inevitably require reforming the traditional contract law system. Some countries have already been reforming the current contract law system s quietly. The take in of Chinas new Contract Law is confronted with the era of knowledge economy rather than that of planned economy or the transitional period from planned economy to market economy. The development of science and technology in the era of knowledge economy is so vigorous that its presumable that difficulties in application will soon emerge after the implementation of new contract law, or even some regulations are already outdated. This situation may be considered as normal because law is the superstructure, which is always behind the economic development. Therefore, any law has to be continuously reform and perfected.Bibliography1. http//legal-dictionary.thefreedictionary.com 2. Wilmot et al, 2009, Contract Law, Third Edition, Oxford University Press 3. Ewan McKendrick, Contract Law Text, Cases and Materials (2005) Oxford University Press 4. P.S. Atiyah, The Rise and run of Freedom of Contract (1979) Clarendon Press 5. steamy E. Barnett, Contracts (2003) Aspen Publishers 6. Scott Fruehwald, Reciprocal Altruism as the rump for Contract, 47 University of Louisville Law Review 489 (2009).