Duress and Exploitation in Chinese Contract Law

Abstract This chapter gives a general overview of the doctrines of duress and exploitation in Chinese contract law. Section II handles the vitiating factor of duress, including an introduction to the relevant legislation and its constituent elements. Section III deals with the vitiating factor of exploitation, comprising a review of a recent substantial change in the law and its constituent elements. Section IV describes the aggrieved party’s power of rescission, which is the direct consequence of both duress and exploitation. Section V lays out rules on the ‘exclusion period’, a time limit restricting the exercise of the power of rescission. Section VI elaborates the indirect consequences of both duress and exploitation after a contract is so rescinded, namely restitution, indemnification, and compensation. The chapter finishes with a comparatively long conclusion which engages with a number of the hypothetical scenarios drawn up by the editors of this volume with a view to facilitating comparative observations.