A futures contract refers to a contract uniformly formulated by a futures exchange and agreed to deliver a certain amount and amount at a specific time and place in the future.
Standardized contracts for high-quality physical goods or financial goods.
The standardized terms of futures contracts generally include:
(1) Transaction quantity and unit terms. The futures contract of each commodity stipulates a unified and standardized quantity and unit of quantity, which are collectively called "trading units". For example, the Chicago Board of Trade stipulates that the trading unit of wheat futures contracts is 5000 bushels (about 27,24 kilograms of wheat per bushel), and each wheat futures contract is the same. If traders buy wheat futures contracts on the exchange, it means that they need to buy 5000 bushels of wheat on the contract expiration date.
(2) Quality and grade terms. Commodity futures contracts stipulate unified and standardized quality grades, and generally adopt internationally recognized commodity quality grade standards. For example, because soybeans from China account for a large proportion in international trade, Japanese Nagoya Grain Exchange takes soybeans made in China as the standard of soybean quality grade.
(3) Terms of delivery place. Futures contracts designate standardized and unified delivery warehouses for physical delivery of futures transactions to ensure the normal delivery of physical objects.
(4) delivery terms. Commodity futures contracts stipulate the physical delivery month, and generally stipulate several delivery months, which are chosen by traders themselves. For example, the delivery months stipulated by the Chicago Board of Trade for wheat futures contracts are July, September, 65438+February, March and May of the following year. Traders can choose their own trading month to trade. If traders buy contracts in July, they will either close their positions before July or make physical delivery in July.
(5) the lowest price change clause. Refers to the minimum allowable range of quotation between buyers and sellers in futures trading, and the price change at each quotation must be an integer multiple of this minimum price change.
(6) Provisions on the maximum fluctuation range of each price. The transaction price of a futures contract on a certain trading day cannot be higher or lower than the settlement price of the previous trading day. If alkali is reached, the trading of the contract will be suspended. For example, the maximum daily price fluctuation of a wheat contract on the Chicago Board of Trade is 20 cents per bushel ($65,438+0,000 per contract).
(7) Terms of the last trading day. Refers to the deadline for futures contracts to stop trading. Every futures contract has a certain month limit. On a certain day in the contract month, the trading of the contract will be stopped and the physical delivery will be prepared. For example, the Chicago Board of Trade stipulates that the last trading day of corn, soybean, soybean meal, soybean oil and wheat futures is the seventh trading day from the last trading day of the delivery month.
In addition, futures contracts also include terms such as delivery method, liability for breach of contract, and liquidated damages for breach of contract.
Futures listed varieties refer to the subject matter of futures contract transactions, such as corn, copper, oil, etc. Not all commodities are suitable for futures trading. Among many physical goods, generally speaking, only goods with Bre attributes can be listed as long-term goods contracts.
First, the price fluctuates greatly. Only when commodity prices fluctuate, traders who want to avoid price risks need to use forward prices to determine prices first. If the commodity price is basically unchanged, such as monopoly price or planned price. There is no need for commodity operators to use futures trading to fix prices or lock in costs.
Second, the supply and demand are large. The function of futures market is based on the premise that both supply and demand sides of commodities participate in transactions extensively. Only goods with large spot supply and demand can compete in a wide range and form authoritative prices.
Second, it is easy to classify and standardize. The quality standard of the delivered goods is stipulated in the futures contract in advance. Therefore, futures varieties must be commodities with stable quality, otherwise, it will be difficult to standardize.
Fourth, it is convenient for storage and transportation. Commodity futures are generally long-term delivery commodities, which requires these commodities to be easy to store, not easy to deteriorate and convenient to transport, so as to ensure the smooth delivery of futures.
According to the types of transactions, futures trading can be divided into commodity futures and financial futures. Physical commodities, such as corn, wheat, copper and aluminum, are all commodity futures. Financial products, such as exchange rate, interest rate and stock index, are regarded as financial futures. Generally, there are no quality problems in financial futures, and most of them are settled by cash and price difference. Financial futures trading is prohibited in China, and only commodity futures trading is piloted. The listed products are mainly copper, aluminum, soybeans, wheat and natural rubber.
Attached are two futures contracts for your reference.
Chicago Board of Trade (CBOT) wheat futures contract
The trading unit is 5000 bushels.
The minimum price change is 0//4 cents per bushel/kloc ($65,438+$02.50 per contract).
The maximum daily price per bushel is not higher or lower than the settlement price of the previous trading day.
The fluctuation limit is 20 cents (per contract 1000 USD), and the spot month is unlimited.
Contract months 7, 9, 12, 3 and 5.
The trading time is from 9: 30 am to afternoon 1: 15 (Chicago time), and the trading deadline on the last trading day of the expired contract is noon that day.
Last trading day The seventh business day from the last business day of the delivery month.
The price difference of substitute varieties of Soft Red Wheat No.2, Hard Red Winter Wheat No.2, Heibei Wheat No.2 and Beichun Wheat 1 shall be stipulated by the Exchange.
Hainan Shangzhong Futures Exchange (CCFE) Natural Rubber Contract
Trading unit: 5 tons each.
Lowest price change: 25 yuan per contract.
Maximum daily price fluctuation limit: the price fluctuation of each contract is not higher than or lower than the settlement price of 2000 yuan on the previous trading day.
Contract month: 1, 3, 4, 5, 6, 7, 8, 9, 10,1.
Trading time: every Monday to Friday morning 10: 00 to 1 1: 30 (excluding Beijing time and holidays).
Last trading day: the tenth business day from the last business day of the delivery month.
Bill exchange date: the third business day of the last business destination in the delivery month.
Delivery grade: domestic first-class standard rubber (SCRS) conforming to GB808 1-87 and international standard green leather imported No.3 rubber (RSSS3).
Place of delivery: Haikou, Shanghai, Zhanjiang, Qingdao, Tianjin and Kunming.
Trading margin: 5% of the trading amount.
Transaction cost: 65438 yuan +05 yuan each.
Handling fee for physical delivery: RMB 0/00 per sheet.
According to the general principles of civil law
A contract (refer to English translation: Agreement ● Bargain ● Contract ● Covenant ● Deal ● Engagement ● Handfast ● Pact ● Promise ● Signing ● Treaty) is an agreement between the parties to establish, change and terminate a civil relationship. Contracts established according to law are protected by law.
According to the contract law
A contract is an agreement between natural persons, legal persons and other organizations with equal subjects to establish, change and terminate the relationship of civil rights and obligations.
A contract is a written record of the agreed matters by both parties under certain conditions. As long as it does not violate the law and there are no contradictory contract terms, both parties voluntarily conclude the contract, and the interests of the third party are not harmed. The transferor who concluded the contract has the right to dispose of the subject matter. If one or both parties do not conclude the contract for the purpose of cheating, the contract is valid and protected by law.
A contract, that is, an agreement, is an agreement and agreement between natural persons, legal persons and other organizations as equal subjects to establish, change and terminate civil rights and obligations. As a civil legal act, a contract is the product of the parties' agreement, and it is an agreement expressed by more than two parties. A contract is legally binding only when the meaning expressed by the parties is legal. A legally established contract shall take effect from the date of its establishment and be legally binding.
As a legal concept, contract is divided into broad sense and narrow sense. The contract referred to here refers to the contract regulated by the contract law, which has the following legal characteristics: (1) A contract is an agreement between two or more parties with equal legal status to express the same will; (2) The purpose of a contract is to establish, change or terminate the creditor-debtor relationship; (3) A contract is a civil legal act.
The legal binding force of this contract is as follows:
1. From the date of establishment, all parties to the contract must be bound by the contract;
2. If the situation changes and it is necessary to change or terminate the contract, it shall be settled through consultation, and neither party may change or terminate the contract without authorization;
3. Except for cases stipulated by law such as force majeure, if the parties fail to perform their contractual obligations or the performance of contractual obligations is not in conformity with the agreement, they shall bear the liability for breach of contract;
4. A contract is a kind of legal document. When there is a contract dispute between the two parties, the contract is the basis for resolving the dispute.
Contracts established according to law are protected by law.
The following is the contract law of our country
General rule
Chapter I General Provisions
Article 1 This Law is formulated for the purpose of protecting the legitimate rights and interests of the parties to a contract, maintaining social and economic order and promoting socialist modernization.
Article 2 A contract as mentioned in this Law is an agreement between natural persons, legal persons and other organizations with equal subjects to establish, change and terminate the relationship of civil rights and obligations.
Other laws shall apply to the agreements on identity relations such as marriage, adoption and guardianship.
Article 3 The parties to a contract have equal legal status, and one party may not impose its will on the other.
Article 4 The parties have the right to voluntarily conclude a contract according to law, and no unit or individual may illegally interfere.
Article 5 The parties shall follow the principle of fairness to determine the rights and obligations of all parties.
Article 6 The parties shall follow the principle of good faith in exercising their rights and performing their obligations.
Article 7 When concluding and performing a contract, the parties shall abide by laws and administrative regulations, respect social morality, and shall not disturb social and economic order or harm social and public interests.
Article 8 A legally established contract is legally binding on the parties. The parties shall perform their obligations as agreed, and shall not alter or terminate the contract without authorization.
Contracts established according to law are protected by law.
Chapter II Formation of a Contract
Article 9 When concluding a contract, the parties shall have corresponding capacity for civil rights and capacity for civil conduct.
The parties may entrust an agent to conclude a contract according to law.
Article 10 The parties may conclude a contract in writing, orally or in other forms.
If laws and administrative regulations stipulate that it should be in writing, it should be in writing. If the parties agree to use written form, it shall be in written form.
Article 11 Written forms refer to forms such as contracts, letters and data messages (including telegrams, telexes, faxes, electronic data interchange and e-mails) that can tangibly express the contents contained.
Article 12 The contents of a contract shall be agreed upon by the parties, and generally include the following clauses:
(1) The name and domicile of the party concerned;
(2) Subject matter;
(3) quantity;
(4) quality;
(5) Price or remuneration;
(6) Time limit, place and method of performance;
(7) Liability for breach of contract;
(8) Methods for resolving disputes.
The parties may conclude a contract by referring to the model texts of various contracts.
Article 13 When concluding a contract, the parties shall take the form of offer and acceptance.
Article 14 An offer is an expression of intention to conclude a contract with another person and shall meet the following conditions:
Specific content;
(2) The offeror is bound by the expression of will by indicating that he has accepted the offer.
Article 15 An invitation to offer is an expression of intention to expect others to make an offer to themselves. Sent price list, auction announcement, tender announcement, prospectus, commercial advertisement, etc. It's an invitation to offer.
If the content of a commercial advertisement conforms to the provisions of the offer, it shall be regarded as an offer.
Article 16 An offer takes effect when it reaches the offeree.
If a contract is concluded in the form of data message, and the addressee designates a specific system to receive the data message, the time when the data message enters the specific system shall be regarded as the arrival time;
If the specific system is not specified, the time when the data message first enters any system of the addressee shall be regarded as the arrival time.
Article 17 An offer may be withdrawn. The notice of withdrawal of an offer shall reach the offeree before or at the same time.
Article 18 An offer may be revoked. The notice of revocation of an offer shall reach the offeree before the offeree issues the notice of acceptance.
Article 19 An offer shall not be revoked under any of the following circumstances:
(1) The offeror has fixed the time limit for acceptance or made it clear in other ways that the offer is irrevocable;
(2) The offeree has reason to believe that the offer is irrevocable and has made preparations for the performance of the contract.
Article 20 An offer is invalid under any of the following circumstances:
(1) The notice of rejection of the offer reaches the offeror;
(2) The offeror revokes the offer according to law;
(3) When the acceptance period expires, the offeree fails to make an acceptance.
(4) The offeree makes substantial changes to the contents of the offer.
Article 21 Acceptance is an expression of the intention of the offeree to agree to an offer.
Article 22 An acceptance shall be made by notice, except that the trading habit or offer indicates that an acceptance can be made through behavior.
Article 23 An acceptance shall reach the offeror within the time limit specified in the offer.
If the offer does not stipulate the time limit for acceptance, the acceptance shall arrive in accordance with the following provisions:
(1) If the offer is made through dialogue, it shall be accepted immediately, unless otherwise agreed by the parties;
(2) If the offer is made through non-dialogue, the acceptance shall arrive within a reasonable time.
Article 24 If an offer is made by letter or telegram, the acceptance period shall be counted from the date specified in the letter or the date when the telegram is delivered. If the letter is not dated, it shall be counted from the postmark date of the letter. Quote by telephone, fax, etc.
If it is made by means of communication, the acceptance period shall be counted from the time when the offer reaches the offeree.
Article 25 When the acceptance comes into effect, the contract is established.
Article 26 A notice of acceptance shall take effect when it reaches the offeror. If the acceptance does not need to be notified, it will take effect when the acceptance is made according to the requirements of trading habits or offers.
Where a contract is concluded in the form of data messages, the time of acceptance shall be governed by the provisions of the second paragraph of Article 16 of this Law.
Article 27 An acceptance may be withdrawn. The notice of withdrawal of acceptance shall reach the offeror before or at the same time as the notice of acceptance.
Article 28 If the offeree makes an acceptance beyond the time limit for acceptance, it shall be a new offer unless the offeror promptly informs the offeree that the acceptance is valid.
Article 29 If the offeree makes an acceptance within the acceptance period and can reach the offeror in time according to the usual circumstances, but the acceptance exceeds the acceptance period for other reasons, the acceptance is valid unless the offeror promptly informs the offeree that the acceptance exceeds the acceptance period.
Article 30 The content of acceptance shall be consistent with the content of offer. If the offeree materially changes the contents of the offer, it is a new offer. Changes in the subject matter, quantity, quality, price or remuneration, time limit, place and method of performance, liability for breach of contract and dispute settlement method of a contract are substantial changes to the contents of the offer.
Article 31 An acceptance to make an immaterial change in the contents of an offer is valid unless the offeror immediately objects or the offer indicates that the acceptance cannot change the contents of the offer. The contents of the contract shall be subject to the promised contents.
Article 32 A contract is concluded by the parties in the form of a contract, and it is established when both parties sign or seal it.
Article 33 If the parties conclude a contract in the form of data messages, they may request to sign a confirmation letter before the contract is established. The contract was established when the confirmation letter was signed.
Article 34 The place where the acceptance takes effect is the place where the contract is established.
Where a contract is concluded in the form of a data message, the recipient's principal place of business is the place where the contract is established; If there is no main place of business, its habitual residence is the place where the contract is established. Unless otherwise agreed by the parties, such agreement shall prevail.
Article 35 Where the parties conclude a contract in the form of a contract, the place where both parties sign or seal is the place where the contract is established.
Article 36 A contract is concluded in writing as stipulated by laws, administrative regulations or agreed by the parties, but one party has fulfilled its main obligations and the other party accepts it.
Article 37 If a contract is concluded in the form of a contract, one party has fulfilled its main obligations before the contract is signed or sealed, and the other party approves it, the contract is established.
Article 38 Where the state issues mandatory tasks or state-ordered tasks according to needs, the relevant legal persons and other organizations shall conclude contracts in accordance with the rights and obligations stipulated in relevant laws and administrative regulations.
Article 39 Where a contract is concluded by standard terms, the party providing the standard terms shall follow the principle of fairness to determine the rights and obligations between the parties, and take reasonable measures to draw the attention of the other party to the terms exempting or limiting its liability, and explain them according to the requirements of the other party.
Standard clauses are clauses drawn up by both parties in advance for reuse, and the two parties did not negotiate with each other when concluding the contract.
Article 40 A standard clause is invalid in any of the circumstances specified in Articles 52 and 53 of this Law, or if the party providing the standard clause exempts the other party from its responsibilities, aggravates the other party's responsibilities or excludes the other party's main rights.
Article 41 If there is any dispute over the understanding of standard terms, it shall be interpreted according to the usual understanding. If there are more than two interpretations of the standard terms, an interpretation that is unfavorable to the party providing the standard terms shall be made. If the standard terms are inconsistent with the non-standard terms, the non-standard terms shall be adopted.
Article 42 In the process of concluding a contract, if any of the following circumstances causes losses to the other party, the parties shall be liable for damages:
(1) Concluding a contract under the guise of malicious negotiation;
(2) Deliberately concealing important facts related to the conclusion of a contract or providing false information;
(three) there are other acts that violate the principle of good faith.
Article 43 The business secrets known to the parties in the process of concluding a contract shall not be disclosed or improperly used, regardless of whether the contract is established or not. If the disclosure or improper use of business secrets causes losses to the other party, it shall be liable for damages.
Chapter III Validity of Contract
Article 44 A legally established contract shall come into force upon its establishment.
Where laws and administrative regulations stipulate that examination and approval, registration and other procedures shall be handled, such provisions shall prevail.
Article 45 The parties may stipulate that the validity of a contract is subject to conditions. A contract with effective conditions shall take effect when the conditions are met. A contract with termination conditions is invalid when the conditions are met.
If the parties improperly prevent the achievement of conditions for their own interests, the conditions are deemed to have been achieved; Those who improperly contribute to conditional achievement are regarded as conditional failure.
Article 46 The parties may stipulate the term of validity of a contract. A contract with an effective term shall take effect upon the expiration of the term. A contract with a termination period is invalid at the expiration of the period.
Article 47 A contract concluded by a person with limited capacity for civil conduct shall be valid after ratification by a legal agent, but a pure benefit contract or a contract that is suitable for his age, intelligence and mental health may not be ratified by a legal agent.
The other party may urge the legal representative to ratify it within one month. If the legal representative fails to express it, it shall be deemed as refusal to ratify it. Before the contract is ratified, the bona fide counterpart has the right to cancel the contract. Revocation shall be made by notice.
Article 48 A contract concluded in the principal's name after the actor has no agency right, exceeds the agency right or the agency right is terminated, without ratification by the principal, it will not be effective for the principal, and the actor shall bear the responsibility.
The other party may urge the principal to ratify it within one month. If the trustor fails to declare it, it shall be deemed as refusal to ratify it. Before the contract is ratified, the bona fide counterpart has the right to cancel the contract. Revocation shall be made by notice.
Article 49 If the actor has no power of agency, exceeds the power of agency or concludes a contract in the name of the principal after the termination of the power of agency, and the counterpart has reason to believe that the actor has power of agency, the agency act is valid.
Article 50 A contract concluded by the legal representative or person-in-charge of a legal person or other organization beyond its authority is valid, unless the other party knows or should know that it has exceeded its authority.
Article 51 A contract concluded by a person who has no right to dispose of another person's property is valid if it is ratified by the creditor or the person who has no right to dispose of it obtains the right to dispose of it.
Article 52 A contract is invalid under any of the following circumstances:
(1) One party enters into a contract by means of fraud or coercion, which harms the interests of the state;
(2) Malicious collusion that harms the interests of the state, the collective or a third party;
(3) Covering up illegal purposes in a legal form;
(4) damaging the public interest;
(5) Violating the mandatory provisions of laws and administrative regulations.
Article 53 The following exemption clauses in this contract are invalid:
(1) Causing personal injury to the other party;
(2) Causing property losses to the other party due to intentional or gross negligence.
Article 54 One party has the right to request a people's court or an arbitration institution to modify or terminate the following contracts:
(1) Due to a major misunderstanding;
(2) obviously unfair at the time of conclusion of the contract.
If one party leads the other party to conclude a contract against its true meaning by fraud, coercion or taking advantage of others' danger, the injured party has the right to request the people's court or arbitration institution to modify or cancel it.
The people's court or arbitration institution shall not revoke the request of the parties.
Article 55 In any of the following circumstances, the right of revocation shall be extinguished:
(1) The party with the right to cancel fails to exercise the right of cancellation within one year from the date when it knows or should know the reasons for cancellation;
(2) The party who has the right to cancel clearly expresses or waives the right to cancel by his own actions after knowing the reasons for cancellation.
Article 56 An invalid contract or a cancelled contract is not legally binding from the beginning. If part of the contract is invalid and does not affect the validity of other parts, the other parts are still valid.
Article 57 The invalidity, cancellation or termination of a contract shall not affect the effectiveness of the independent dispute settlement clause in the contract.
Article 58 After a contract is invalid or cancelled, the property acquired as a result of the contract shall be returned; If it is impossible or unnecessary to return it, it shall be compensated at a discount. The party at fault shall compensate the other party for the losses suffered as a result. If both parties are at fault, they shall bear their respective responsibilities.
Article 59 If the parties collude maliciously and harm the interests of the state, the collective or a third party, the property obtained shall be turned over to the state or returned to the collective or the third party.
Chapter IV Performance of the Contract
Article 60 The parties shall fully perform their obligations as agreed.
The parties shall abide by the principle of good faith and fulfill the obligations of notification, assistance and confidentiality according to the nature, purpose and trading habits of the contract.
Article 61 After the contract comes into effect, the parties have not agreed or clearly agreed on the quality, price or remuneration, place of performance, etc. They can supplement the agreement; If a supplementary agreement cannot be reached, it shall be determined in accordance with the relevant provisions of the contract or trading habits.
Article 62 Where the parties have not clearly agreed on the contents of the contract and cannot be determined according to the provisions of Article 61 of this Law, the following provisions shall apply:
(a) the quality requirements are not clear, in accordance with national standards and industry standards; If there is no national standard or industry standard, it shall be implemented according to the usual standard or the specific standard that meets the purpose of the contract.
(2) If the price or remuneration is not clear, it shall be performed according to the market price at the place of performance when the contract is concluded; If government pricing or government-guided pricing should be implemented according to law, it shall be implemented in accordance with the provisions.
(3) Where the place of performance is unclear, if payment is made in currency, it shall be performed at the place where the party receiving the currency is located; Where real estate is delivered, it shall be performed at the place where the real estate is located; Other targets shall be performed at the place where the party performing the obligations is located.
(4) If the time limit for performance is not clear, the debtor may perform at any time, and the creditor may also request performance at any time, but the other party shall be given the necessary preparation time.
(5) If the method of performance is not clear, it shall be performed in a way conducive to the realization of the purpose of the contract.
(six) if the burden of performance expenses is not clear, it shall be borne by the party performing the obligation.
Article 63 Where government pricing or government-guided pricing is implemented, if the government price is adjusted within the delivery period agreed in the contract, the pricing shall be based on the price at the time of delivery. If the subject matter is delivered late and the price rises, the original price shall prevail; When the price drops, the new price shall prevail. Overdue extraction of the subject matter or overdue payment, in case of price increase, according to the new price calculation; When the price drops, the original price shall prevail.
Article 64 If the parties agree that the debtor shall perform the debt to a third person, if the debtor fails to perform the debt to the third person or the performance is not in conformity with the agreement, it shall be liable to the creditor for breach of contract.
Article 65 If the parties agreed that the third party should perform the debt to the creditor, and the third party failed to perform the debt or the performance of the debt did not conform to the agreement, the debtor shall be liable to the creditor for breach of contract.
Article 66 If the parties owe debts to each other and there is no order of performance, they shall perform at the same time. One party has the right to reject the performance requirements of the other party before performance. When the performance of the debt does not conform to the contract, one party has the right to refuse the corresponding performance requirements of the other party.
Article 67 Where the parties owe debts to each other, they shall perform them in sequence. If one party fails to perform first, the other party has the right to refuse its performance requirements. If the first performing party fails to perform the contract, the second performing party has the right to reject its corresponding performance requirements.
Article 68 If the party who performs the debt first has definite evidence to prove that the other party has one of the following circumstances, it may suspend its performance:
(a) the business situation has deteriorated seriously;
(2) Transferring property or withdrawing funds to avoid debts;
(3) loss of business reputation;
(four) there are other circumstances that have lost or may lose the ability to perform debts.
If a party suspends performance without definite evidence, it shall be liable for breach of contract.
Article 69 If a party suspends performance in accordance with the provisions of Article 68 of this Law, it shall promptly notify the other party. After the other party provides appropriate guarantee, it shall resume performance. After the suspension of performance, if the other party fails to recover its performance ability within a reasonable period of time and fails to provide appropriate guarantee, the party that suspends performance may terminate the contract.
Article 70 If the creditor fails to notify the debtor of the division, merger or change of domicile, which makes it difficult to perform the debt, the debtor may suspend the performance or deposit the subject matter.
Article 71 A creditor may refuse the debtor's early performance of the debt, unless the early performance does not harm the creditor's interests.
The expenses incurred by the creditor due to the debtor's early performance of the debt shall be borne by the debtor.
Article 72 A creditor may refuse the debtor's partial performance, unless the partial performance does not harm the creditor's interests.
The expenses incurred by the creditor due to the debtor's partial performance of the debt shall be borne by the debtor.
Article 73 Where the debtor is slow in exercising the creditor's right due, thus causing damage to the creditor, the creditor may request the people's court to exercise the debtor's creditor's right in his own name, unless the creditor's right belongs exclusively to the debtor.
The scope of subrogation is limited to creditor's rights. The necessary expenses for the creditor to exercise subrogation shall be borne by the debtor.
Article 74 If the debtor abandons the due creditor's rights or transfers the property for free, thus causing damage to the creditor, the creditor may request the people's court to cancel the debtor's behavior. If the debtor transfers the property at an obviously unreasonable low price, causing damage to the creditor, and the transferee knows the situation, the creditor may also request the people's court to cancel the debtor's behavior.
The scope of revocation right is limited to creditor's rights. The necessary expenses for the creditor to exercise its right of cancellation shall be borne by the debtor.
Article 75 The right of revocation shall be exercised within one year from the date when the creditor knows or should know the reasons for revocation. If the debtor fails to exercise its cancellation right within five years from the date of the debtor's behavior, the cancellation right shall be extinguished.
Article 76 After a contract comes into effect, the parties may not fail to perform their contractual obligations because of the change of their names or legal representatives, responsible persons and contractors.
Chapter V Alteration and Assignment of Contract
Article 77 The parties may modify the contract through consultation.
Where laws and administrative regulations stipulate that the alteration of a contract shall go through the formalities of approval and registration, such provisions shall prevail.
Article 78 If the parties have not clearly agreed on the contents of the contract change, it is presumed that it has not been changed.
Article 79 A creditor may assign all or part of his contractual rights to a third party, except in any of the following circumstances:
(a) according to the nature of the contract shall not be transferred;
(two) according to the agreement of the parties shall not be transferred;
(3) It shall not be transferred according to law.
Article 80 Where a creditor transfers its rights, it shall notify the debtor. Without notice, the assignment is invalid to the debtor.
The notice of the creditor's transfer of rights shall not be revoked, except with the consent of the transferee.
Article 81 Where a creditor assigns its rights, the assignee obtains the subordinate rights related to the creditor's rights, unless the subordinate rights belong exclusively to the creditor.
Article 82 After receiving the notice of assignment of creditor's rights, the debtor may claim the assignor's defense against the assignee.
Article 83 When the debtor receives the notice of assignment of creditor's rights, the debtor enjoys the creditor's rights against the assignor, and the debtor's creditor's rights expire before or at the same time as the assigned creditor's rights, the debtor may claim set-off from the assignee.
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