Chinese Legal System
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During the first half of this century, China had no formal legal system. In 1949, when the Communists took over the country under Mao Zedong, China imported many of the institutions of the socialist legal system that had been developed in the Soviet Union. During the Cultural Revolution of 1965 to 1975, the country completely abandoned any type of legal system and closed all law schools.1 In 1978, following Mao's death, the law schools were reopened. In 1976, China had a handful of practicing lawyers. Ten years later, there were 25,000 working lawyers in China.2 Legal reconstruction began after the Third People's Congress, which subsequently adopted a new Constitution. The Chinese Constitution states that it has supreme legal authority.3 The Chinese Constitution provides that the National People's Congress and its Standing Committee supervise the enforcement of the Constitution. The Standing Committee of the National People's Congress exercises the function and power of interpreting the Constitution.4 The Chinese have attempted to create a modern legal system within the past twelve years and to approve laws that will stimulate economic growth. The 1978 Constitution restored the judicial elements and in 1982, a Provisional Law of Civil In a court trial, judges question the parties and witnesses and act in much the same way as American lawyers do. After all the evidence has been introduced and testimony heard, the
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5 of the Foreign Economic Contracts Law of the People's Republic of China stipulates that
the parties to a contract may choose a law applicable in settling disputes arising from the contract. If the parties make no choice, the laws of the country most closely related to the contract shall be applied . . . Contracts [to be] performed within the territory of China shall be governed by the laws of the People's Republic of China.
To further its economic contacts with foreign countries, the drafters of the FECL intended it to be consistent with international commercial practice.
Four principles provide the actual basis for the FECL: equality and mutual benefit; the primacy of international treaties to which China is a party; honoring the contract and maintaining good faith in business activities; and national laws and regulations protect national sovereignty and social welfare.23
To further complicate matters, international treaties may govern the law of contracts. When an international treaty that relates to a contract differs from the law of the People's Republic of China, the provisions of the treaty shall be applied, with the exception of clauses to which the People's Republic of China has declared reservation.24
Although
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Approximate Word count = 2210
Approximate Pages = 9 (250 words per page)
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