Supreme People's Court, Interpretation on Issues Relevant to the Application of the Law in Trials of Disputes over Sales and Purchase Contracts

Main contents: If the parties have executed a subscription document, order for purchase, advance booking document, letter of intent, memorandum or other such agreement to contract specifying that within a certain period in future they will enter into a sales and purchase contract and one of the parties fails to perform its obligation of entering into a sales and purchase contract, whereupon the other party requests that it bear liability for breach of the agreement to contract or requests termination of the agreement to contract and claims damages, the people's court shall uphold such request (Article 2).