Basic Domestic Chinese Arbitral Award Setting Aside Framework
Setting aside domestic Chinese arbitral awards requires proving explicit procedural or evidentiary defects under Article 58 within a rigid six-month window.
PRC Civil Code Article 490 Ratification by Performance
Meaning
Statutory rule governing contract formation where written execution defects are cured when one party performs main obligations and the counterparty accepts performance. Legal enforceability under PRC Civil Code Article 490 ratification by performance arises even if a commercial agreement lacks formal signatures or corporate chops. Chinese courts apply this rule to validate commercial transactions where physical goods were delivered or payments were accepted without formal contract execution.
The provision prevents parties from dishonoring commercial agreements based on technical signing flaws after benefiting from transaction performance.
Performance Trigger
Delivering raw materials, making advance bank payments, or providing contract services fulfills the core performance criteria required by law. Citing PRC Civil Code Article 490 ratification by performance allows suppliers to enforce payment terms despite missing corporate stamps on original order contracts. Courts evaluate bank deposit receipts and warehouse receiving records as physical proof of accepted performance.
Evidentiary Proof
Litigation claims require establishing clear connection between physical actions and specific unsigned contractual terms. Applying PRC Civil Code Article 490 ratification by performance involves demonstrating that the receiving party accepted goods or services without submitting timely written objections. Email exchanges and WeChat delivery confirmations substantiate mutual acceptance of performed duties.
Legal Boundary
Mandatory statutory approval requirements for specialized industries override contract ratification through performance alone. Relying on PRC Civil Code Article 490 ratification by performance cannot cure contracts that violate mandatory legal prohibitions or administrative safety regulations. Contracts violating national security or public interest remain void regardless of performance.