Suspension Rules under Chinese Contract Law, the UCC and the CISG: Some Comparatiave Perspectives
A comparative analysis of suspension rules under the three governing statutes for US-China sales contracts: the PRC Contract Law, the Uniform Commercial Code and the United Nations Convention on Contracts for the International Sale of Goods.
Issue: September 2004
Keywords (click to search):
trade
trading
contract law
anticipatory repudiation
suspension rights
reasonable grounds for insecurity
Uniform Commercial Code
United Nations Convention on Contracts for the International Sale of Goods
By Yinghao Yang, Debevoise & Plimpton LLP, New York
With an increasing volume of trade between China and the US in the recent years, transactions between commercial parties of the two countries are worthy of very close attention. A Sino-US contract of sale can be governed by any of three statutes the Uniform Commercial Code (UCC), the United Nations Convention on Contracts for the International Sale of Goods (CISG) or the PRC Contract Law(中华人民共和国合同法). Each statute contains a form of insecurity rule. For lawyers handling Sino-US transactions, it is necessary to gain a deep understanding of the suspension issue in the different systems, not only for the purpose of litigation but also to avoid pitfalls in the drafting of legal documents. Here we will explain insecurity rules under the three statutes, and compare their different operation requirements, burdens of proof and legal effects. A practical suggestion will also be made...
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