SAIC Promulgates Measures Against Unlawful Contract-Related Acts
Because of the contract frauds happened continually in recent years, the State Administration for Industry and Commerce recently promulgated the Measures for Supervision and Administration of Contract-related Unlawful Acts. Contract-related unlawful acts mentioned in the Measures refer to the acts of natural persons, legal persons and other organizations, making use of a contract and intending to obtain illegal profits, which violate laws and regulations or these measures. The Measures clearly indicate that the parties are prohibited from using such contract to implement the following fraudulent acts: 1 forging a contract; 2. forging the right as principal of the contract or entering into a contract under the guise of others’ names; 3. distributing or using false information in order to seduce others into a contract; 4. maliciously drawing up provisions which in reality are impossible to be performed, resulting in the parties being unable to perform the contract, etc. The Measures also prescribe that where the operators and the consumers have entered into a contract using standard terms, the operator is prohibited from imposing additional responsibilities on the consumers in the standard terms; the operators are also prohibited from eliminating the relevant rights of the consumers in the standard terms.
The Measures aims at those frauds severe than normal breach of faith but can not constitute a crime.
It provides an administrative method to prevent natural persons, legal persons and other organizations from pursuing contract fraud.