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

最高人民法院关于审理买卖合同纠纷案件适用法律问题的解释

July 12, 2012 | BY

clpstaff &clp articles &

Letters of intent and MOUs have legal effect.

Clp Reference: 2230/12.05.10 Promulgated: 2012-05-10 Effective: 2012-07-01

Promulgated: May 10 2012

Effective: July 1 2012

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).

Related legislation: PRC Contract Law, Mar 15 1999, CLP 1999 No.4 p.19; Interpretation on Several Issues Concerning Application of the (1), Dec 19 1999, CLP 2000 No.2 p.43; Interpretation on Several Issues Concerning the Application of the (2), Apr 24 2009, CLP 2009 No.5 p.69; and PRC Property Law, Mar 16 2007, CLP 2007 No.4 p.31

prc reference:2230/12.05.10promulgated:2012-05-10effective:2012-07-01

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