China

Article 41

If a dispute arises over the understanding of a standard clause, the clauses shall be interpreted in accordance with its common understanding. If a standard clause has more than one interpretation, the clause shall be interpreted in a manner unfavourable to the party providing the clause. If a standard clause is inconsistent with the non-standard clause, the non-standard clause shall be adopted.

Article 52 see also Validity

A contract is invalid under any of the following circumstances:

• either party enters into the contract by means of fraud or coercion and impairs the State's interests;
• there is malicious conspiracy causing damage to the interest of the State, of the collective or of a third party;
• there is an attempt to conceal illegal goals under the disguise of legitimate forms;
• harm is done to social and public interests; or
• mandatory provisions of laws and administrative regulations are violated.

Article 125

In the event that the parties dispute about the understanding of a clause of the contract, the actual meaning of the clause shall be inferred and determined on the basis of the words and sentences used in the contract, related clauses of the contract, aim of the contract, trade practices and the principle of good faith.

If a contract is made in two or more languages which are equally authentic as contracted, the words and sentences used in the diffenerent language texts shall be assumed to be identical in denotation. If the words and sentences used in different language texts contain discrepancies, they shall be interpreted according to the aim of the contract.