The “Interpretation of the Supreme People's Court on Several Issues Concerning the Application of the General Principles of the Civil Code” has come into effect on March 1, 2022.
The Supreme People’s Court released the “Interpretation of the Supreme People’s Court on Several Issues Concerning the Application of the General Principles of the Civil Code” (Fa Shi [2022] No. 6) (hereinafter referred to as the “Interpretation “) on Feb. 24, 2022, which has come into effect on March 1, 2022. Herein below is the introduction and analysis regarding 2 key articles related to commercial contracts. Determination of a “Substantial misunderstanding” According to Article 19 of the “Interpretation”, a “Substantial misunderstanding” refers to where a person has a mistaken understanding of the nature of his/her act, the counterparty or the…