CHINA'S SUPREME PEOPLE'S COURT ISSUES CLARIFICATION AND INTERPRETATION
OF THE CONTRACT LAW 
 
 

On April 24, 2009, the Supreme People's Court of the People's Republic of China issued the "Interpretation II of the Supreme People's Court on Several Issues concerning the Application of the Contract Law of the People's Republic of China", which came into force on May 13, 2009. The release of Interpretation II was driven by two major factors. First, it was felt that Interpretation I issued by the SPC in 1999 did not adequately deal with many of the issues arising out of the changed social circumstances in the 10 years since its release. Secondly, the ongoing global financial crisis led to an increase in the number of contract disputes since the second half of 2008.
 

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