International Journal of Economic Behavior and Organization

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Study of the Right of Government to Change Contracts Unilaterally of PPP Project in the Context of Chinese Civil Law

Received: 31 October 2019    Accepted:     Published: 23 December 2019
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Abstract

The PPP project contract as an incomplete contract with long-term, complex and uncertain characteristics. The Contract Law gives a party the right to change unilaterally on the basis of the principle of “frustration of contract.” The contract law stipulates that certain contracts may be unilaterally changed under certain circumstances. The change of the contract is based on the ex parte implication, which changes the civil legal relationship. In the PPP contract, giving the government the right to change contracts unilaterally is better to protect the public interest. The right need of government’s unilateral change of contractual has a very important relationship with the public interest, changes in government public service demand and changes in the situation caused by the long-term nature of the contract. In order to safeguard the public interest, meet the changes in the actual needs of public services and the change of circumstances, the government could also change the contract unilaterally on the basis of the theory of “frustration of contract”. When the government exercises the right to change the contract unilaterally due to the public interest, changes in the actual demand of the public service, and changes in the situation, the contract counterparty shall be compensated accordingly.

DOI 10.11648/j.ijebo.20190704.13
Published in International Journal of Economic Behavior and Organization (Volume 7, Issue 4, December 2019)
Page(s) 70-74
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Civil Law, PPP Contract, Government Unilateral Change

References
[1] Rui Cunha Marques, Regulation by contract: Overseeing PPPs, Utilities Policy 50 2018.
[2] Zhu Qiang, Tao Li: On the Adjustment of Long-Term Contracts in the General Principles of International Commercial Contracts, International Business Research, No. 2, 2019.
[3] Kobin: Contract Law, China Encyclopedia Publishing House 1998 edition, p8.
[4] Wang Liming: Research on Contract Law (Volume II), Renmin University of China Press, 2015, p160.
[5] Cui Jianyuan: General Theory of Contract Law (Vol. 2) (Second Edition), Renmin University of China Press, 2016, p2.
[6] Dieter Medicus: The General Theory of German Civil Law, translated by Shao Jiandong, Law Press, 2000, p76.
[7] Ye Lin: On the System of Force Majeure, Northern Methodology, No. 5, 2007.
[8] World Bank, Public-Private Partnerships Reference Guide, version 3. 0. World Bank, Public-Private Partnerships Reference Guide, version 3. 0, P1.
[9] Xu Wei, Huang Wei, Shen Jie. Restrictions on the Change of Engineering Contracts. Journal of Southeast University (Philosophy and Social Sciences Edition), 2012, 14 (03).
[10] Wang Liming: On the Function of Contract Law to Organize the Economy, Chinese and Foreign Law, No. 1, 2017.
[11] Kasten Heilstel, Xu Defeng. Research on the Principle of Changing Circumstances [J]. Chinese and Foreign Law, 2004 (04).
[12] UK HMT, Standardisation of PF2 Contracts Draft, December 2012.
[13] Cui Jianyuan. The Relationship between the First Contract and the Follow-up Contract and Its Interpretation. Legal Research, 2018, 40 (04).
[14] Sun Xianzhong: The Position of Civil Law in China's Legal System, Chinese Journal of Social Sciences 2017/7/5, Version 005.
Author Information
  • The School of Public Finance and Taxation, Central University of Finance and Economics, Beijing, P. R. China

  • The School of Law, Central University of Finance and Economics, Beijing, P. R. China

  • National Tax Institute of State Taxation Administration of China, Yangzhou, P. R. China

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  • APA Style

    Qian Jiuling, Cao Fuguo, Zhen Deyun. (2019). Study of the Right of Government to Change Contracts Unilaterally of PPP Project in the Context of Chinese Civil Law. International Journal of Economic Behavior and Organization, 7(4), 70-74. https://doi.org/10.11648/j.ijebo.20190704.13

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    ACS Style

    Qian Jiuling; Cao Fuguo; Zhen Deyun. Study of the Right of Government to Change Contracts Unilaterally of PPP Project in the Context of Chinese Civil Law. Int. J. Econ. Behav. Organ. 2019, 7(4), 70-74. doi: 10.11648/j.ijebo.20190704.13

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    AMA Style

    Qian Jiuling, Cao Fuguo, Zhen Deyun. Study of the Right of Government to Change Contracts Unilaterally of PPP Project in the Context of Chinese Civil Law. Int J Econ Behav Organ. 2019;7(4):70-74. doi: 10.11648/j.ijebo.20190704.13

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  • @article{10.11648/j.ijebo.20190704.13,
      author = {Qian Jiuling and Cao Fuguo and Zhen Deyun},
      title = {Study of the Right of Government to Change Contracts Unilaterally of PPP Project in the Context of Chinese Civil Law},
      journal = {International Journal of Economic Behavior and Organization},
      volume = {7},
      number = {4},
      pages = {70-74},
      doi = {10.11648/j.ijebo.20190704.13},
      url = {https://doi.org/10.11648/j.ijebo.20190704.13},
      eprint = {https://download.sciencepg.com/pdf/10.11648.j.ijebo.20190704.13},
      abstract = {The PPP project contract as an incomplete contract with long-term, complex and uncertain characteristics. The Contract Law gives a party the right to change unilaterally on the basis of the principle of “frustration of contract.” The contract law stipulates that certain contracts may be unilaterally changed under certain circumstances. The change of the contract is based on the ex parte implication, which changes the civil legal relationship. In the PPP contract, giving the government the right to change contracts unilaterally is better to protect the public interest. The right need of government’s unilateral change of contractual has a very important relationship with the public interest, changes in government public service demand and changes in the situation caused by the long-term nature of the contract. In order to safeguard the public interest, meet the changes in the actual needs of public services and the change of circumstances, the government could also change the contract unilaterally on the basis of the theory of “frustration of contract”. When the government exercises the right to change the contract unilaterally due to the public interest, changes in the actual demand of the public service, and changes in the situation, the contract counterparty shall be compensated accordingly.},
     year = {2019}
    }
    

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