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GENERAL PRINCIPLES OF THE CIVIL LAW OF THE  PEOPLE'S  REPUBLIC  OFCHINA
          Important Notice:
This  English  document  is  coming  from  "LAWS  AND  REGULATIONS  OF THE
PEOPLE'S REPUBLIC OF  CHINA  GOVERNING  FOREIGN-RELATED  MATTERS" (1991.7)
which  is  compiled  by  the  Brueau  of  Legislative Affairs of the State
Council of  the  People's Republic of China, and is published by the China
Legal System Publishing House.
In case of discrepancy, the original version in Chinese shall prevail.
          Whole Document

GENERAL PRINCIPLES OF THE CIVIL LAW OF THE  PEOPLE'S  REPUBLIC  OF
CHINA
(Adopted at the Fourth Session  of  the  Sixth  National  People's
Congress, promulgated by Order No. 37 of the  President  of  the  People's
Republic of China on April 12, 1986, and effective as of January 1, 1987)
          Contents

Chapter I     Basic Principles
Chapter II    Citizen (Natural Person)
              Section 1 Capacity for Civil Rights and Capacity for Civil
                        Conduct
              Section 2 Guardianship
              Section 3 Declarations of Missing Persons and Death
              Section 4 Individual Businesses and Leaseholding Farm
                        Households
              Section 5 Individual Partnership
Chapter III   Legal Persons
              Section 1 General Stipulations
              Section 2 Enterprise as Legal Person
              Section 3 Official Organ, Institution and Social
                        Organization as Legal Persons
              Section 4 Economic Association
Chapter IV    Civil Juristic Acts and Agency
              Section 1 Civil Juristic Acts
              Section 2 Agency
Chapter V     Civil Rights
              Section 1 Property Ownership and Related Property Rights
              Section 2 Creditors' Rights
              Section 3 Intellectual Property Rights
              Section 4 Personal Rights
Chapter VI    Civil Liability
              Section 1 General Stipulations
              Section 2 Civil Liability for Breach of Contract
              Section 3 Civil Liability for Infringement of Rights
              Section 4 Methods of Bearing Civil Liability
Chapter VII   Limitation of Action
Chapter VIII  Application of Law in Civil Relations with Foreigners
Chapter IX    Supplementary Provisions
          Chapter I Basic Principles

Article 1
This Law is formulated in accordance with the Constitution and the  actual
situation in our country, drawing upon our practical experience  in  civil
activities, for the purpose of protecting  the  lawful  civil  rights  and
interests of citizens and legal  persons  and  correctly  adjusting  civil
relations,  so  as  to  meet  the  needs  of  the   developing   socialist
modernization.
Article 2
The Civil Law of the People's Republic  of  China  shall  adjust  property
relationships and personal relationships between civil subjects with equal
status, that is, between  citizens,  between  legal  persons  and  between
citizens and legal persons.
Article 3
Parties to a civil activity shall have equal status.
Article 4
In civil activities, the principles  of  voluntariness,  fairness,  making
compensation for equal value, honesty and credibility shall be observed.
Article 5
The lawful civil rights and interests of citizens and legal persons  shall
be protected by law; no organization or individual may infringe upon them.
Article 6
Civil activities must be in compliance with the law; where  there  are  no
relevant provisions in the law, they shall be  in  compliance  with  state
policies.
Article 7
Civil activities shall have respect for social ethics and shall  not  harm
the public interest, undermine state  economic  plans  or  disrupt  social
economic order.
Article 8
The law of the People's Republic of China shall apply to civil  activities
within the People's Republic of China, except as otherwise  stipulated  by
law.
The stipulations of this Law as regards citizens shall apply to foreigners
and stateless persons within the People's Republic  of  China,  except  as
otherwise stipulated by law.
          Chapter II Citizen (Natural Person)

Section 1 Capacity for Civil Rights and Capacity for Civil Conduct.
Article 9
A citizen shall have the capacity for civil rights from birth to death and
shall enjoy civil rights and assume civil obligations in  accordance  with
the law.
Article 10
All citizens are equal as regards their capacity for civil rights.
Article 11
A citizen aged 18 or over shall be an adult. He shall have  full  capacity
for civil conduct, may independently engage in civil activities and  shall
be called a person with full capacity for civil conduct.
A citizen who has reached the age of 16 but not the age of  18  and  whose
main source of income is his own labour shall be regarded as a person with
full capacity for civil conduct.
Article 12
A minor aged 10 or over shall be a person with limited capacity for  civil
conduct and may engage in civil activities  appropriate  to  his  age  and
intellect; in other civil activities, he shall be represented by his agent
ad litem or participate with the consent of his agent ad litem.
A minor under the age of 10 shall be a person having no capacity for civil
conduct and shall be represented in  civil  activities  by  his  agent  ad
litem.
Article 13
A mentally ill person who is unable to account for his own  conduct  shall
be a person having no capacity for civil conduct and shall be  represented
in civil activities by his agent ad litem.
A mentally ill person who is unable to fully account for his  own  conduct
shall be a person with limited capacity for civil conduct and  may  engage
in civil activities appropriate to  his  mental  health;  in  other  civil
activities, he shall be represented by his agent ad litem  or  participate
with the consent of his agent ad litem.
Article 14
The guardian of a person  without  or  with  limited  capacity  for  civil
conduct shall be his agent ad litem.
Article 15
The domicile of a citizen shall  be  the  place  where  his  residence  is
registered; if his habitual residence is not the same as his domicile, his
habitual residence shall be regarded as his domicile.

Section 2 Guardianship
Article 16
The parents of a minor shall be his guardians.
If the parents of a minor are dead  or  lack  the  competence  to  be  his
guardian, a person from the following categories who has the competence to
be a guardian shall act as his guardian:
(1) paternal or maternal grandparent;
(2) elder brother or sister; or
(3) any other closely connected relative or friend  willing  to  bear  the
responsibility of guardianship and having approval from the units  of  the
minor's parents or from the neighbourhood  or  village  committee  in  the
place of the minor's residence.  In case of a dispute  over  guardianship,
the units of the minor's parents or the neighbourhood or village committee
in the place of his residence shall appoint  a  guardian  from  among  the
minor's near relatives. If disagreement over the appointment  leads  to  a
lawsuit, the people's court shall make a ruling.
If none of the persons listed in the first two paragraphs of this  article
is available to be the guardian, the units of  the  minor's  parents,  the
neighbourhood or village committee in the place of the  minor's  residence
or the civil affairs department shall act as his guardian.
Article 17
A person from the  following  categories  shall  act  as  guardian  for  a
mentally ill person without or with limited capacity for civil conduct:
(1) spouse;
(2) parent;
(3) adult child;
(4) any other near relative;
(5) any other closely connected relative or friend  willing  to  bear  the
responsibility of guardianship and having approval from the unit to  which
the mentally ill person belongs  or  from  the  neighbourhood  or  village
committee in the place of his  residence.   In  case  of  a  dispute  over
guardianship, the unit to which the mentally ill  person  belongs  or  the
neighbourhood or village committee in the place  of  his  residence  shall
appoint a guardian from among his near relatives. If disagreement over the
appointment leads to a lawsuit, the people's court shall make a ruling.
If none of the persons listed in the first paragraph of  this  article  is
available to be the guardian, the unit to which the  mentally  ill  person
belongs, the neighbourhood or  village  committee  in  the  place  of  his
residence or the civil affairs department shall act as his guardian.

Article 18
A guardian shall fulfil his duty of guardianship and protect  the  person,
property and other lawful rights and interests of  his  ward.  A  guardian
shall not handle the property of his ward  unless  it  is  in  the  ward's
interests.
A guardian's rights to fulfil his guardianship in accordance with the  law
shall be protected by law.
If a guardian does not fulfil his duties as guardian or infringes upon the
lawful rights and interests of his ward, he shall be held responsible;  if
a guardian causes any property loss for his ward, he shall compensate  for
such loss. The people's court may  disqualify  a  guardian  based  on  the
application of a concerned party or unit.
Article 19
A person who shares interests  with  a  mental  patient  may  apply  to  a
people's court for a declaration that  the  mental  patient  is  a  person
without or with limited capacity for civil conduct.
With the recovery of the health of a person who has  been  declared  by  a
people's court to be without or with limited capacity for  civil  conduct,
and upon his own application or that of an interested person, the people's
court may declare him to be a person with limited  or  full  capacity  for
civil conduct.

Section 3 Declarations of Missing Persons and Death
Article 20
If a citizen's whereabouts have been unknown for two years, an  interested
person may apply to a people's court for a declaration of the  citizen  as
missing.
If a person's whereabouts become unknown during a war, the calculation  of
the time period in which his whereabouts are unknown shall  begin  on  the
final day of the war.
Article 21
A missing person's property shall be placed in the custody of his  spouse,
parents, adult children or other closely connected relatives or friends.
In case of a dispute over custody, if the  persons  stipulated  above  are
unavailable or are incapable of taking such custody, the property shall be
placed in the custody of a person appointed by  the  people's  court.  Any
taxes, debts and other unpaid expenses owed  by  a  missing  person  shall
defrayed by the custodian out of the missing person's property.
Article 22
In the event that a person who has been declared missing reappears or  his
whereabouts are ascertained,  the  people's  court  shall,  upon  his  own
application or that of an interested person, revoke the declaration of his
missing-person status.
Article 23
Under either of the following  circumstances,  an  interested  person  may
apply to the people's court for a declaration of a citizen's death:
(1) if the citizen's whereabouts have been unknown for four years or
(2) if the citizen's whereabouts have been unknown for two years after the
date of an accident in which he was involved.
If a person's whereabouts become unknown during a war, the calculation  of
the time period in which his whereabouts are unknown shall  begin  on  the
final day of the war.
Article 24
In the event that a person who has been declared dead reappears or  it  is
ascertained that he is alive, the  people's  court  shall,  upon  his  own
application or that of an interested person, revoke the declaration of his
death.
Any civil juristic acts performed by a  person  with  capacity  for  civil
conduct during the period in which he has  been  declared  dead  shall  be
valid.
Article 25
A person shall have the right to request the return of  his  property,  if
the declaration of his death has been revoked. Any citizen or organization
that has obtained such property in accordance with the Law  of  Succession
shall return the original items or make appropriate  compensation  if  the
original items no longer exist.

Section 4 Individual Businesses and Leaseholding Farm Households
Article 26
"Individual businesses" refers to business run by individual citizens  who
have been lawfully registered and approved  to  engage  in  industrial  or
commercial operation within the sphere permitted  by  law.  An  individual
business may adopt a shop name.
Article 27
"Leaseholding farm households" refers to members  of  a  rural  collective
economic organization who engage in commodity production under a  contract
and within the spheres permitted by law.
Article 28
The  legitimate  rights  and  interests  of  individual   businesses   and
leaseholding farm households shall be protected by law.
Article 29
The debts of an individual business or a leaseholding farm household shall
be secured with the individual's property if the business is  operated  by
an individual and with the family's property if the business  is  operated
by a family.

Section 5 Individual Partnership
Article 30
"Individual partnership" refers to two or more citizens  associated  in  a
business  and  working  together,  with  each  providing  funds,  material
objects, techniques and so on according to an agreement.
Article 31
Partners shall make a written agreement covering  the  funds  each  is  to
provide, the distribution of profits, the responsibility  for  debts,  the
entering into and withdrawal from partnership, the ending  of  partnership
and other such matters.
Article 32
The property provided  by  the  partners  shall  be  under  their  unified
management and use.  The property accumulated in a  partnership  operation
shall belong to all the partners.
Article 33
An individual partnership may adopt a shop name; it shall be approved  and
registered in accordance with the  law  and  conduct  business  operations
within the range as approved and registered.
Article 34
The operational activities of an individual partnership shall  be  decided
jointly by the partners, who each shall have the right to  carry  out  and
supervise those activities. The partners may elect a responsible person.
All partners shall bear civil liability for the operational activities  of
the responsible person and other personnel.

Article 35
A partnership's debts shall be secured  with  the  partners'  property  in
proportion  to  their  respective  contributions  to  the  investment   or
according to the agreement made.  Partners shall undertake joint liability
for their partnership's debts, except as otherwise stipulated by law.  Any
partner who overpays his share of the partnership's debts shall  have  the
right to claim compensation from the other partners.
          Chapter III Legal Persons

Section 1 General Stipulations
Article 36
A legal person shall be an organization that has capacity for civil rights
and capacity for civil conduct and independently enjoys civil  rights  and
assumes civil obligations in accordance with the law.
A legal person's capacity for civil rights and capacity for civil  conduct
shall begin when the legal person is established and shall  end  when  the
legal person terminates.
Article 37
A legal person shall have the following qualifications:
(1) establishment in accordance with the law;
(2) possession of the necessary property or funds;
(3) possession of its own name, organization and premises; and
(4) ability to independently bear civil liability.
Article 38
In accordance with the law or the articles of  association  of  the  legal
person, the responsible person who acts on behalf of the legal  person  in
exercising its functions and powers shall be its legal representative.
Article 39
A legal person's domicile shall be the place where its main administrative
office is located.
Article 40
When a legal person terminates, it shall go into liquidation in accordance
with the law and discontinue all other activities.

Section 2 Enterprise as Legal Person
Article 41
An enterprise owned by the whole  people  or  under  collective  ownership
shall be qualified as a legal person  when  it  has  sufficient  funds  as
stipulated by the state; has articles of association, an organization  and
premises; has the ability to independently bear civil liability;  and  has
been approved and registered  by  the  competent  authority.   A  Chinese-
foreign equity joint venture, Chinese-foreign contractual joint venture or
foreign-capital enterprise established within  the  People's  Republic  of
China shall be qualified as  a  legal  person  in  China  if  it  has  the
qualifications of a legal person and has been approved and  registered  by
the administrative agency for industry and commerce in according with  the
law.
Article 42
An enterprise as legal person shall conduct operations  within  the  range
approved and registered.

Article 43
An  enterprise  as  legal  person  shall  bear  civil  liability  for  the
operational activities of its legal representatives and other personnel.
Article 44
If an enterprise as legal person is divided or  merged  or  undergoes  any
other important change, it shall register the change with the registration
authority and publicly announce it.
When an enterprise as legal person is divided or merged,  its  rights  and
obligations shall be enjoyed and assumed by  the  new  legal  person  that
results from the change.
Article 45
An enterprise as legal person shall terminate for  any  of  the  following
reasons:
(1) if it is dissolved by law;
(2) if it is disbanded;
(3) if it is declared bankrupt in accordance with the law; or
(4) for other reasons.
Article 46
When an enterprise  as  legal  person  terminates,  it  shall  cancel  its
registration with the registration authority  and  publicly  announce  the
termination.

Article 47
When an enterprise as legal person is  disbanded,  it  shall  establish  a
liquidation organization and go into liquidation. When  an  enterprise  as
legal person is dissolved or is declared bankrupt, the competent authority
or a people's court shall organize the organs and personnel  concerned  to
establish a liquidation organization to liquidate the enterprise.
Article 48
An enterprise owned by the whole people, as legal person, shall bear civil
liability with the property that the state authorizes  it  to  manage.  An
enterprise under collective ownership, as legal person, shall  bear  civil
liability with the  property  it  owns.  A  Chinese-foreign  equity  joint
venture, Chinese-foreign  contractual  joint  venture  or  foreign-capital
enterprise as legal person shall bear civil liability with the property it
owns, except as stipulated otherwise by law.
Article 49
Under any of the following circumstances, an enterprise  as  legal  person
shall bear liability, its legal representative may additionally  be  given
administrative sanctions and fined  and,  if  the  offence  constitutes  a
crime, criminal responsibility shall be investigated  in  accordance  with
the law:
(1) conducting illegal operations beyond the range approved and registered
by the registration authority;
(2) concealing  facts  from  the  registration  and  tax  authorities  and
practising fraud;
(3) secretly withdrawing funds or hiding property to  evade  repayment  of
debts;
(4) disposing of property without authorization after  the  enterprise  is
dissolved, disbanded or declared bankrupt;
(5) failing to apply for  registration  and  make  a  public  announcement
promptly when the  enterprise  undergoes  a  change  or  terminates,  thus
causing interested persons to suffer heavy losses;
(6) engaging in other activities prohibited by law, damaging the interests
of the state or the public interest.

Section 3 Official Organ, Institution and Social Organization as Legal
Person
Article 50
An independently funded official organ  shall  be  qualified  as  a  legal
person on the day it is established.
If according to law an  institution  or  social  organization  having  the
qualifications of a legal person needs not go through the  procedures  for
registering as a legal person, it shall be qualified as a legal person  on
the day it is established; if according to law it does need to go  through
the registration procedures, it shall be qualified as a legal person after
being approved and registered.

Section 4 Economic Association
Article 51
If a new economic entity is formed by enterprises or an enterprise and  an
institution that engage in economic association and it independently bears
civil liability and has the qualifications of  a  legal  person,  the  new
entity shall be qualified as a  legal  person  after  being  approved  and
registered by the competent authority.
Article 52
If the enterprises or an enterprise and  an  institution  that  engage  in
economic  association  conduct  joint  operation  but  do  not  have   the
qualifications of a legal person, each party to the association shall,  in
proportion to its respective contribution to the investment  or  according
to the agreement made, bear civil liability with the property  each  party
owns or manages. If joint liability is specified by law or  by  agreement,
the parties shall assume joint liability.
Article 53
If  the  contract  for  economic  association  of  enterprises  or  of  an
enterprise and an institution specifies  that  each  party  shall  conduct
operations independently, it shall stipulate the rights and obligations of
each party, and each party shall bear civil liability separately.
          Chapter IV Civil Juristic Acts and Agency

Section 1 Civil Juristic Acts
Article 54
A civil juristic act shall be the lawful act of a citizen or legal  person
to establish, change or terminate civil rights and obligations.
Article 55
A civil juristic act shall meet the following requirements:
(1) the actor has relevant capacity for civil conduct;
(2) the intention expressed is genuine; and
(3) the act does not violate the law or the public interest.
Article 56
A civil juristic act may be in written, oral or other  form.  If  the  law
stipulates that a particular form be adopted, such  stipulation  shall  be
observed.
Article 57
A civil juristic act shall be legally binding once it is  instituted.  The
actor shall not alter or rescind his act except in accordance with the law
or with the other party's consent.
Article 58
Civil acts in the following categories shall be null and void:
(1) those performed by a person without capacity for civil conduct;
(2) those that according to law may not be independently  performed  by  a
person with limited capacity for civil conduct;
(3) those performed by a person against his true intentions as a result of
cheating, coercion or exploitation of his  unfavourable  position  by  the
other party;
(4) those that performed through malicious collusion  are  detrimental  to
the interest of the state, a collective or a third party;
(5) those that violate the law or the public interest;
(6) economic contracts that violate the state's mandatory plans; and
(7) those that performed  under  the  guise  of  legitimate  acts  conceal
illegitimate purposes. Civil acts that are null  and  void  shall  not  be
legally binding from the very beginning.
Article 59
A party shall have the right to request a people's court or an arbitration
agency to alter or rescind the following civil acts:
(1) those performed by an actor who seriously misunderstood  the  contents
of the acts;
(2) those that are obviously unfair.
Rescinded civil acts shall be null and void from the very beginning.
Article 60
If part of a civil act is null and void, it shall not affect the  validity
of other parts.

Article 61
After a civil act has been determined to be null  and  void  or  has  been
rescinded, the party who acquired property as a result of  the  act  shall
return it to the party  who  suffered  a  loss.  The  erring  party  shall
compensate the other party for the losses it suffered as a result  of  the
act; if both sides are in error, they shall each bear their  proper  share
of the responsibility.
If the two sides have conspired maliciously and performed a civil act that
is detrimental to the interests of the state,  a  collective  or  a  third
party, the property that they thus obtained shall be recovered and  turned
over to the state or the collective, or returned to the third party.
Article 62
A civil juristic act may have conditions attached to it. Conditional civil
juristic acts shall take effect when the relevant conditions are met.

Section 2 Agency
Article 63
Citizens and legal persons may perform civil juristic acts through  agents
An agent shall perform civil juristic acts in the principal's name  within
the scope of the power of agency. The principal shall bear civil liability
for the agent's acts  of  agency.  Civil  juristic  acts  that  should  be
performed by the principal himself, pursuant to legal  provisions  or  the
agreement between the two parties, shall not be entrusted to an agent.
Article 64
Agency shall include entrusted  agency,  statutory  agency  and  appointed
agency.  An  entrusted  agent  shall  exercise  the  power  of  agency  as
entrusted by the principal; a statutory agent shall exercise the power  of
agency as prescribed by law; and an appointed  agent  shall  exercise  the
power of agency as designated by a people's court or the appointing unit.
Article 65
A civil juristic act may be entrusted to an agent in writing or orally. If
legal provisions require the  entrustment  to  be  written,  it  shall  be
effected in writing.  Where the entrustment of agency is in  writing,  the
power of attorney shall clearly state  the  agent's  name,  the  entrusted
tasks and the scope and duration of the power of agency, and it  shall  be
signed or sealed by the principal.
If the power of attorney is not clear as to the authority  conferred,  the
principal shall bear civil liability towards  the  third  party,  and  the
agent shall be held jointly liable.
Article 66
The principal shall bear civil liability for an act performed by an  actor
with no power of agency, beyond the scope of his power of agency or  after
his  power  of  agency  has  expired,  only  if  he  recognizes  the   act
retroactively. If the act is not so recognized, the performer  shall  bear
civil liability for it. If a principal is aware that a civil act is  being
executed in his name but fails to  repudiate  it,  his  consent  shall  be
deemed to have been given.
An agent shall bear civil liability if he fails to perform his duties  and
thus causes damage to the principal.
If an agent and a third party in collusion harm the principal's interests,
the agent and the third party shall be held jointly liable.
If a third party is aware that  an  actor  has  no  power  of  agency,  is
overstepping his power of agency, or his power of agency has  expired  and
yet joins him in a civil act and thus brings damage to other  people,  the
third party and the actor shall be held jointly liable.

Article 67
If an agent is aware that the matters  entrusted  are  illegal  but  still
carries them out, or if a principal is aware that  his  agent's  acts  are
illegal but fails to object to them, the principal and the agent shall  be
held jointly liable.
Article 68
If in the principal's interests an entrusted agent needs to  transfer  the
agency to another person, he shall first obtain the principal's consent.
If the principal's consent is not obtained in advance, the matter shall be
reported to him promptly after the transfer, and if the principal objects,
the agent shall bear civil liability for the acts of the transferee;
however, an entrusted agency transferred  in  emergency  circumstances  in
order to safeguard the principal's interests shall be excepted.
Article 69
An entrusted agency shall end under any of the following circumstances:
(1) when the period of agency expires or  when  the  tasks  entrusted  are
completed;
(2) when the principal rescinds the entrustment or the agent declines  the
entrustment;
(3) when the agent dies;
(4) when the principal loses his capacity for civil conduct; or
(5) when the principal or the agent ceases to be a legal person.
Article 70
A statutory or appointed agency shall  end  under  any  of  the  following
circumstances:
(1) when the principal gains or recovers capacity for civil conduct;
(2) when the principal or the agent dies;
(3) when the agent loses capacity for civil conduct;
(4) when the people's court or the unit that appointed the agent  rescinds
the appointment; or
(5) when the guardian relationship between the  principal  and  the  agent
ends for other reasons.
          Chapter V Civil Rights

Section 1 Property Ownership and Related Property Rights
Article 71
"Property  ownership"  means  the  owner's  rights  to  lawfully  possess,
utilize, profit from and dispose of his property.
Article 72
Property ownership shall not be obtained in violation of the law.
Unless the law stipulates otherwise or the parties concerned  have  agreed
on other arrangements, the ownership of property obtained by  contract  or
by other  lawful  means  shall  be  transferred  simultaneously  with  the
property itself.
Article 73
State property shall be owned by the whole people.
State property is sacred and inviolable, and no organization or individual
shall be allowed to seize, encroach  upon,  privately  divide,  retain  or
destroy it.
Article 74
Property of collective organizations of the working masses shall be  owned
collectively by the working masses. This shall include:
(1) land, forests, mountains, grasslands, unreclaimed  land,  beaches  and
other areas that are stipulated by law to be under collective ownership;
(2) property of collective economic organizations;
(3) collectively owned buildings, reservoirs, farm  irrigation  facilities
and  educational,  scientific,  cultural,   health,   sports   and   other
facilities; and (4) other property that is collectively owned.
Collectively owned  land  shall  be  owned  collectively  by  the  village
peasants in accordance with the law and shall be  worked  and  managed  by
village   agricultural   production   cooperatives,    other    collective
agricultural economic organizations or villages' committees. Land  already
under the ownership of the township (town) peasants'  collective  economic
organizations may be collectively owned by the peasants  of  the  township
(town). Collectively owned property shall be  protected  by  law,  and  no
organization or individual may seize,  encroach  upon,  privately  divide,
destroy or illegally seal up, distrain, freeze or confiscate it.
Article 75
A citizen's personal property shall include his  lawfully  earned  income,
housing, savings, articles for daily use, objects d'art, books,  reference
materials, trees, livestock, as  well  as  means  of  production  the  law
permits a citizen to possess and other lawful property. A citizen's lawful
property shall be protected by law, and no organization or individual  may
appropriate, encroach upon, destroy or illegally seal up, distrain, freeze
or confiscate it.

Article 76
Citizens shall have the right of inheritance under the law.
Article 77
The  lawful  property  of  social   organizations,   including   religious
organizations, shall be protected by law.
Article 78
Property may be owned jointly by two or more citizens or legal persons.
There shall be two kinds of joint ownership, namely co-ownership by shares
and common ownership. Each of the co-owners  by  shares  shall  enjoy  the
rights and  assume  the  obligations  respecting  the  joint  property  in
proportion to his share. Each of the common owners shall enjoy the  rights
and assume the obligations respecting the joint property.   Each  co-owner
by shares shall have the right to withdraw his  own  share  of  the  joint
property or transfer its ownership. However, when he offers  to  sell  his
share, the other co-owners shall have a right of pre-emption if all  other
conditions are equal.
Article 79
If the owner of a buried or concealed object is unknown, the object  shall
belong to the state. The unit that receives the object  shall  commend  or
give a material reward to the unit or individual that turns in the object.
Lost-and-found objects, flotsam and stray animals  shall  be  returned  to
their rightful owners, and any costs thus incurred shall be reimbursed  by
the owners.
Article 80
State-owned land may be used according to law by units under ownership  by
the whole people; it may also be lawfully assigned for use by units  under
collective ownership.  The state shall protect the usufruct of  the  land,
and the usufructuary shall be obligated to manage,  protect  and  properly
use the land.
The right of citizens and collectives to contract for management  of  land
under collective ownership or of state-owned  land  under  collective  use
shall be  protected  by  law.  The  rights  and  obligations  of  the  two
contracting  parties  shall  be  stipulated  in  the  contract  signed  in
accordance with the law.
Land may not be sold, leased, mortgaged or illegally  transferred  by  any
other means.

Article 81
State-owned forests, mountains,  grasslands,  unreclaimed  land,  beaches,
water surfaces and other natural resources may be used according to law by
units under ownership by the whole people; or they may  also  be  lawfully
assigned for use by units under  collective  ownership.  The  state  shall
protect the usufruct of those resources, and  the  usufructuary  shall  be
obliged to manage, protect and properly use them.
State-owned mineral resources may be mined according to law by units under
ownership by the whole people and units under collective ownership;
citizens may also lawfully mine such resources. The  state  shall  protect
lawful mining rights.
The right of  citizens  and  collectives  to  lawfully  contract  for  the
management of forests, mountains, grasslands,  unreclaimed  land,  beaches
and water surfaces that are owned by collectives or owned by the state but
used by collectives shall be protected by law. The rights and  obligations
of the two contracting parties shall be  stipulated  in  the  contract  in
accordance with the law.
State-owned  mineral  resources  and  waters  as  well  as  forest   land,
mountains, grasslands, unreclaimed land and beaches owned by the state and
those that are lawfully owned by collectives  may  not  be  sold,  leased,
mortgaged or illegally transferred by any other means.
Article 82
Enterprises under ownership by the whole people shall lawfully  enjoy  the
rights of management over property that the state has authorized  them  to
manage and operate, and the rights shall be protected by law.

Article 83
In the spirit of helping production, making things convenient for people's
lives,  enhancing  unity  and  mutual  assistance,  and  being  fair   and
reasonable, neighbouring  users  of  real  estate  shall  maintain  proper
neighbourly  relations  over  such  matters  as  water  supply,  drainage,
passageway, ventilation and lighting. Anyone  who  causes  obstruction  or
damage to his  neighbour,  shall  stop  the  infringement,  eliminate  the
obstruction and compensate for the damage.

Section 2 Creditors' Rights
Article 84
A debt  represents  a  special  relationship  of  rights  and  obligations
established between the parties concerned, either according to the  agreed
terms of a contract or legal provisions. The party entitled to the  rights
shall be the creditor, and the party assuming the obligations shall be the
debtor.
The creditor shall have the right to demand that  the  debtor  fulfil  his
obligations as specified by the contract or according to legal provisions.
Article 85
A contract shall be an agreement whereby the parties establish, change  or
terminate their civil relationship. Lawfully established  contracts  shall
be protected by law.
Article 86
When there are two or more creditors to a deal,  each  creditor  shall  be
entitled to rights in proportion to his proper share of the  credit.  When
there are two or  more  debtors  to  a  deal,  each  debtor  shall  assume
obligations in proportion to his share of the debt.
Article 87
When there are two or more creditors or debtors to a  deal,  each  of  the
joint creditors shall be entitled to demand that  the  debtor  fulfil  his
obligations, in accordance with legal provisions or the agreement  between
the parties; each of the joint debtors shall be  obliged  to  perform  the
entire debt, and the debtor who performs the entire debt shall be entitled
to ask the other joint debtors to reimburse him for their  shares  of  the
debt.

Article 88
The parties to a contract shall fully fulfil their obligations pursuant to
the terms of the contract.
If a contract contains ambiguous terms regarding quality, time  limit  for
performance, place of performance, or  price,  and  the  intended  meaning
cannot be determined from the context of relevant terms in  the  contract,
and if the parties cannot reach an  agreement  through  consultation,  the
provisions below shall apply:
(1) If quality requirements are unclear,  state  quality  standards  shall
apply; if there are no state quality standards, generally  held  standards
shall apply.
(2) If the time limit for performance is unclear, the debtor  may  at  his
convenience fulfill his obligations towards the creditor; the creditor may
also demand at any time that  the  debtor  perform  his  obligations,  but
sufficient notice shall be given to the debtor.
(3) If the place of performance is unclear, and the payment is money,  the
performance shall be effected at the seat or place  of  residence  of  the
party receiving the payment; if the  payment  is  other  than  money,  the
performance shall be effected at the seat or place  of  residence  of  the
party fulfilling the obligations.
(4) If the price agreed by the parties is unclear, the  state-fixed  price
shall apply. If there is no state-fixed price, the price shall be based on
market price or the price of a  similar  article  or  remuneration  for  a
similar service.
If the contract does not contain an agreed term regarding rights to patent
application, any party who has completed an invention-creation shall  have
the right to apply for a patent.
If the contract does not contain an agreed term regarding rights to patent
application, and technological research achievements,  the  parties  s