Wang X, Wuhan Tianjiu Industry & Trade Development Co., Ltd. v. Ministry of Commerce of the People’s Republic of China

This article is now included as Article 502 in Civil Code: “A contract formed in accordance with law becomes effective upon its formation, unless otherwise provided by law or agreed by the parties. Where there are laws or administrative regulations providing that a contract shall be subject to approval and other procedures, such provisions shall be followed. Where failure to complete the approval or other procedures is to affect the effectiveness of the contract, the validity of the clauses concerning the performance of the obligation of filing for approval and the like procedures and the other relevant clauses in the contract are not affected. Where the party obligated to complete application for approval or other procedures fails to do so, the other party may request the said party to bear the liability for breach of such obligation. Where there are laws or administrative regulations providing that modification, assignment, or rescission of a contract shall be subject to approval or other procedures, the provisions of the preceding paragraph shall be applied.”