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National People's Congress
Promulgation Date: 1999.3.15
Effective Date: 1999.10.1
CHAPTER 23 CONTRACTS FOR INTERMEDIATION
Article 424 An intermediation contract refers to a contract whereby the intermediator reports to the principal the opportunity for concluding a contract or provides intermediate service for concluding a contract, and the principal pays the remuneration.
Article 425 The intermediator shall report truthfully to the principal the matters related to the conclusion of a contract. Where the intermediator intentionally conceals the important facts relating to the conclusion of the contract or provides false information and harms the interests of the principal, the said party may not claim the payment of remuneration and shall be liable for damages.
Article 426 The principal shall pay the intermediator remuneration according to the terms of the contract if the intermediator has facilitated the establishment of the contract. Where there is no such agreement in the contract on remuneration or such agreement is unclear, nor can it be determined according to the provisions of Article 61 of this Law, the remuneration shall be determined reasonably according to the service rendered by the intermediator. If the establishment of a contract has been facilitated by the intermediate service rendered by the intermediator, the remuneration shall be borne equally by the parties to the contract. Where the intermediator has facilitated the conclusion of the contract, the expenses for the intermediate service shall be borne by the intermediator.
Article 427 Where the intermediator fails in facilitating the conclusion of a contract, the intermediator may not request for the payment of remuneration, but may request the principal to pay the necessary expenses for the intermediate service.
Article 428 This Law shall come into force as of October 1st, 1999. The Economic Contract Law of the People's Republic of China, the Law of the People's Republic of China on Economic Contracts Involving Foreign Interests and the Law of the People's Republic of China on Technology Contracts shall be invalidated simultaneously.
The End