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4 In relation to the Contract Law of China:
(a) explain what is ‘a contract by unauthorised agent’;
(b) state the legal effect of a contract by unauthorised agent;
(c) state what measures can be taken by the counterparty to a contract by unauthorised agent in dealing with the effect of such a contract.
答案:
4 This question requires candidates to explain a contract by unauthorised agent, state the legal effect of a contract by unauthorised agent and the ways to deal with the contract by unauthorised agent under the Contract Law.
(a) A contract by an unauthorised agent refers to a contract which is concluded by a person who has no power of agency, who oversteps the power of agency or whose power of agency has expired and yet concludes it on behalf of the principal.
(b) In accordance with Article 48 of the Contract Law, a contract by an unauthorised agent shall generally have no legal binding force on the principal without ratification by the principal, and the agent shall be held liable for their conduct.
(c) In accordance with Article 48 of the Contract Law, in the case of a contract by an unauthorised agent, the counterparty to the contract may urge the principal to ratify the contract within one month. It shall be deemed as a refusal of ratification when the principal does not make any expression. A bona fide counterparty has also the right to cancel the contract before the contract is ratified. The cancellation shall be made by means of notice.
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