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The Enforcement of Arbitration Award in China

Recently I represented a client to apply for the enforcement of an arbitration award by CIEAC to a Intermediate Law Court of Tianjin city. Applying for enforcement of arbitration award is a legal procedure in China, requiring specific documents and steps. Herebelow I share the application for the enforcement of an arbitration in China, and annalyze some important points during the process.

Applicable arbitration cases: (1)the arbitration award made by arbitration institution according to the laws of arbitration.(2) the mediation paper made by arbitration institution.

The claimant shall apply for the enforcement of arbitration to the court of jurisdiction, that is: the intermediate court of : (1)the domicile of the respondent, or (2)the enforceable assets.

The request may be refuted if it is not clear, such as in any of the following:

1. The subject of rights and obligations is not clear
2. The amount of monetary payment or the calculation method is unclear
3. The specific item to be delivered is unclear or undeterminable
4. The standards, objects, and scope of behavior fulfillment are not clear

Some Legal Analysis of Chasing Shareholders in the Procedure of Enforcement-exemplified by Tianjin Courts

Several Legal Analysis of Additional Shareholders in the Course of Enforcement — A Case Study of Tianjin District Court
When the company encounters difficulties in the course of execution, under normal circumstances, when the company as the person subjected to execution has no property available for execution, and its shareholders have subscribed for capital contributions but have not actually paid, the creditor’s relief route. The following is a specific analysis of the problem:

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Preliminary mediation

Preliminary mediation refers to a procedural mechanism in which, after accepting a civil case and before formally entering the litigation process, the people’s court, either ex officio or upon the application of the parties, guides the parties to negotiate on an equal footing, show mutual understanding and accommodation, and reach a substantive resolution of the dispute through various methods such as appointing a mediation organization, designating a full-time mediator, or having a judge preside over the mediation, provided that both parties agree, for cases suitable for mediation.

Legal points involved in the arbitration case involving Chinese investors in the host country

  1. Is the BIT signed by China applicable to Hong Kong and Macao regions
  2. Are the provisions in the BITs signed by China with foreign countries within the scope of arbitration
  3. Whether Chinese state-owned enterprises are eligible investors for arbitration
  4. Does the Most Favored Nation (MFN) clause of China’s BITs with foreign countries apply to dispute resolution
  5. The nature of the “cooling off period” provision for arbitration in BITs signed by China with foreign countries

Conclusion of Contract according to China Civil Law

The rules on conclusion of contract in China, based on the articles of the Civil Code of P.R.China
Article 469: The parties may enter into a contract in writing, orally, or in any other form.
Written form refers to the tangible representation of the contents contained in contracts, letters, telegrams, telegrams, faxes, and other forms.
A data message that can be tangibly expressed through electronic data interchange, email, or other means and can be accessed and used at any time is considered in written form.
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Shall a contract be automatically cancelled when a particular circumstance arises

If parties agreed that the contract will be automatically cancelled when some condition is met, would the contract be cancelled without notification to the other party?

Contract cancellation is one of the most important ways to terminate contractual right and obligation, and it’s a fundamental change of the contract status. As per the laws of China, the ways of cancellation of contract include: cancellation by negotiation, and cancellation by one party executing his right to cancel. The relevant expression of his will to cancellation shall be made to make all parties concious of that” whether the contract status has a fundamental change or not”. It depends on the party’s will to decide whether he will exercise his right to cancellation or not, and the relevant fact and reason

According toprovision 565 of China’s Civil Code,if one party claims to cancellation of contract in line with the law, he should notify the other party. The contract shall be cancelled when notification is reached to the other party; if it’s stated in the notification that the contract will be cancelled when the debtor fails to fulfill his debt in a specified timeframe, the contract shall be cancelled upon the timeframe expires. Either party could apply to court or arbitration to confirm the validation of the contract cancellation.

This legal provision puts emphasis on that : when one party exercise his right to cancellation based on agreement or legal stipulation, the party shall send a notification to the other party, expressing his definite will.

(This article is made by Mr.Wang Jingzhan from Tianjin Bozhuan Law Firm)