ABSTRACT
This chapter considers the approach of Chinese law to modern forms of contract making, exploring what systemic risks might arise from the current system of law. The chosen example is the spot markets contracts not least for the sale of commodities made between parties who are likely to be doing business with each other for the first time and who operate in a well-established and fasttrading market. Chinese contract law requires a process of offer and acceptance to conclude a contract. This is made explicit by Article 13 of the Chinese Contract Law. There are two stages of offer and acceptance that are essential for to the formation of a contract. This is a state of considerably reduced flexibility compared to English law. Besides the conditions to be satisfied on which contract formation are contingent, there is also a requirement of signature for traditional contracts in written form under Chinese law.
