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	PROVISIONS OF THE SUPREME PEOPLE'S COURT OF TRYING CIVIL CASES INVOLVING PEOPLE CONCILIATION AGREEMENTS

	(Announcement of the Supreme People's Court (Interpretation No. 29 [2002] of the Supreme People's Court), September 16, 2002: Provisions Of The Supreme People's Court Of Trying Civil Cases Involving People Conciliation Agreements, which were adopted at the 1240th meeting of the Judicial Committee of the Supreme People's Court on September 5, 2002, are hereby promulgated, and shall come into force on November 1, 2002)


SUBJECT : PEOPLE CONCILIATION AGREEMENTS
ISSUING DEPARTMENT : THE SUPREME PEOPLE'S COURT OF THE PEOPLE'S REPUBLIC OF CHINA
ISSUE DATE : 09/16/2002
IMPLEMENT DATE : 11/01/2002
LENGTH : 963 words
TEXT :

We have hereby made the following provisions with regard to the relevant issues on the trial of civil cases involving the people's conciliation agreements in accordance with the General Principles of the Civil Law of the People's Republic of China, the Contract Law of the People's Republic of China and the Civil Procedure Law of the People's Republic of China, and with reference to the Organic Regulation of the People's Conciliation Committees as well as in combination with the judicial experiences in civil cases and the actual situation for the purpose of justly trying civil cases involving the people's conciliation agreements:

Article 1. A conciliation agreement which is concluded under the conciliation of the people's conciliation committee, contains contents of civil rights and obligations, and is signed or sealed by both parties, shall have the nature of civil contract. The parties shall perform their own obligations pursuant to the stipulations in the contract, and shall not unilaterally modify or rescind the conciliation agreement.

Article 2. Where one party brings a lawsuit to the people's court requesting the other party to perform the conciliation agreement, the people's court shall entertain the case.

Where one party brings a lawsuit to the people's court requesting the modification or rescission of a conciliation agreement, or requesting confirmation of the invalidity of the conciliation agreement, the people's court shall entertain the case.

Article 3. Where one party brings a lawsuit requesting the performance of a conciliation agreement, the other party shall, if refuting the request, be liable to provide the evidence to prove the facts that the refutation claims are based upon.

Where one party brings a lawsuit requesting the modification or rescission of a conciliation agreement, or requesting the confirmation of the invalidity of the conciliation agreement, he shall be liable to provide the evidence to prove the facts that his own litigation claims are based upon.

Where one party brings a lawsuit to the people's court with regard to the original dispute, the other party shall, if claiming the demur with the conciliation agreement, provide the written conciliation agreement.

Article 4. A conciliation agreement meeting the following conditions shall be valid:

(1) the party has complete capacity for civil conduct;

(2) the intention expressed is genuine; and

(3) it does not violate the compulsory provisions in laws or administrative regulations or does not violate the public interests.

Article 5. A conciliation agreement shall be invalid under any of the following circumstances:

(1) it damages the interests of the state, the collectivity or a third person;

(2) it conceals illegitimate purposes under the guise of legitimate acts;

(3) it damages the public interests; or

(4) it violates the compulsory provisions in laws or administrative regulations.

A conciliation agreement concluded under the compulsory conciliation of the people's conciliation committee shall be invalid.

Article 6. For any of the following conciliation agreements, either party shall have the right to request the people's court to modify or rescind it:

(1) those which are concluded due to major misunderstanding;

(2) those which are obviously unfair at the time of conclusion.

For a conciliation agreement concluded under the circumstance that one party violates his true intention as a result of being cheated, coerced or taken advantage of his unfavorable state by the other party, the aggrieved party shall have the right to request the people's court to modify or rescind the agreement.

Where a party requests the modification of an agreement, the people's court shall not rescind it.

Article 7. The right of rescission shall be eliminated under any of the following circumstances:

(1) the party with the right of rescission fails to exercise such a right within one year as of the day when he knows or ought to know the causes of rescission; or

(2) the party with the right of rescission waives such a right by clear expression or by his own behavior after knowing the causes of rescission.

Article 8. An invalid or rescinded conciliation agreement shall have no legal binding force from the very beginning. If a conciliation agreement is partially invalid, but the validity of other parts is not influenced, the said other parts shall still be valid.

Article 9. The limitation of action of a conciliation agreement shall be subject to Article 135 of the General Principles of Civil Law.

The limitation of action of the original dispute shall be interrupted due to the conciliation of the people's conciliation committee.

If, after a conciliation agreement is rescinded or ascertained to be invalid, one party brings a lawsuit with regard to the original dispute, a new limitation of action shall be counted as of the day when the judgment by which the conciliation agreement is rescinded or ascertained to be invalid becomes effective.

Article 10. Where the public notary office imposes the validity of compulsory execution upon a conciliation agreement containing contents of credits in accordance with the law, the creditor may apply to the people's court of the place where the person subject to execution is domiciled or where his properties are located for execution.

Article 11. The basic people's courts and their dispatched people's tribunals shall, when trying civil cases involving the people's conciliation agreements, generally apply the summary procedure.

Article 12. If, when the people's court is trying a civil case involving the people's conciliation agreement, the conciliation agreement is modified, rescinded or confirmed to be invalid by a legally binding judgment of the people's court, the people's court may inform the local judicial administration organ or people's conciliation committee of the fact by a proper means.

Article 13. The present provisions shall come into force on November 1, 2002.

The people's courts shall, when trying the civil cases involving the people's conciliation agreements concluded after November 1, 2002, apply the present provisions.