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Civil Code: Contracts · Yalla China

民法典 合同编 / Civil Code — Contracts

Enacted: 2020-05-28 ✅ Effective: 2021-01-01

📝 Overview

This book governs how contracts form and bind: offer and acceptance, freedom of contract, performance, breach and damages, and it underlies rental, employment, purchase and service agreements.

This is general information only, not legal advice. For your specific case, consult a licensed lawyer.

📜 The law text / key provisions

Key practical points:
• A contract typically forms when one party makes an offer and the other accepts the same terms.
• You have freedom of contract: you choose whom to deal with and on what terms, within legal limits.
• Dealings rest on good faith, so both sides are expected to be honest and honour what was agreed.
• Each party must perform its obligations fully and on time; breach may lead to liability for damages.
• Putting contracts in writing is strongly advisable, especially for rentals, employment and larger purchases.
• Keep a signed copy, payment receipts and any important correspondence as evidence.
• Read the terms carefully before signing, and request a translation of anything you don't understand.
• On breach you may seek performance, damages or termination depending on the situation.

💬 Practical reading

💬 This is a general reading/opinion for orientation — not the official legal text nor legal advice.
For you as a foreigner, this book is what protects your rights when you rent a flat, start a job or buy a service. The key practical tip: don't rely on verbal deals — always ask for a written contract and keep a copy along with payment receipts. If the other side fails to perform, a clear contract greatly strengthens your position in claiming your rights. Before signing a Chinese-language contract you don't understand, get a translation or consult someone you trust. This is general orientation, not formal legal advice.

🚔 Illustrative example / related case

Illustrative, general educational examples — not real specific facts and not legal advice; for awareness only. For an actual situation, consult a licensed lawyer.
A Deposit Comes Back with Contracts, Not Words
The situation: A foreign tenant leaves the flat at the end of the lease, and the landlord refuses to return the deposit citing general 'damage' without specifics or proof, while there was no record of the flat's condition at move-in.

Applicable law: The Civil Code governs lease contracts and binds both parties to what they agreed, allowing mediation or the courts to recover sums owed when one side breaches.

Typical outcome: With a written contract, photos and receipts, the matter tends toward full return of the deposit or deduction of genuine damage only; without evidence the tenant struggles to recover the money.
🎓 The lesson / takeaway: Lesson: Protect yourself from the start with a clear written lease, take photos and video of the flat's condition on move-in day, and keep the deposit payment receipts. In a dispute, rely on the contract and demand the damage be specified and proven, then use mediation or the relevant authorities. Evidence, not arguing, is what gets your money back.
Read the full case →
📎 Official source National People's Congress / npc.gov.cn

🕒 Updated: 16 March 2026

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