Legal Information

Firm news, insights on new laws, and frequently asked questions.

27 2026-10

Can an assignment and guarantee be used to oppose other creditors?

After the completion of the public announcement of the change of rights in the assignment of guarantee, the guarantor may be compensated preferentially for the subject matter, with priority over ordinary creditors; if the announcement is not made, the guarantee only has the effect of a creditor's right, which is difficult to resist against bona fide third parties.

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27 2026-10

When a mortgage and a pledge exist simultaneously, who takes priority?

When the same property is subject to both a mortgage and a pledge, the order of repayment shall be determined in accordance with the registration and delivery time in accordance with Articles 414 and 415 of the Civil Code, and the repayment shall be made in parallel according to the proportion of the creditor's claims.

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27 2026-10

Can a commission contract be terminated unilaterally at any time?

Both parties to the entrustment contract enjoy the right to terminate the contract at any time, but they shall compensate for the losses caused to the other party by the termination; in the case of a gratuitous entrustment, the party shall only bear responsibility in the event of intentional or gross negligence.

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27 2026-10

Can a non-fixed-term contract be terminated at any time upon notice?

The parties to a non-fixed-term contract may terminate it at any time, but they shall notify the other party within a reasonable period of time. For non-fixed-term leases, the parties must give reasonable advance notice before terminating the contract, and they shall not bear any breach of contract liability in this case.

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27 2026-10

How long does it take for the other party to rescind the contract if one party delays in performing its obligations and is given a notice of default?

If a party delays in performing its main obligations and fails to perform them within a reasonable period after being reminded, the other party may terminate the contract; there is no standard timeframe for a reasonable period, and the right to terminate the contract must be exercised within one year after knowing the relevant facts. It is recommended to send a written reminder to keep a record of...

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27 2026-10

Can the party in breach of contract actively sue to request the termination of the contract?

In principle, the party in breach of contract does not have the right to rescind the contract. However, according to Article 580, Paragraph 2 of the Civil Code, if the performance of a non-monetary obligation cannot achieve the purpose of the contract, the party may request the court or arbitration institution to terminate the contract and bear the corresponding responsibilities.

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27 2026-10

How is the loss of the price difference calculated when the market price drops?

The loss of the price difference due to the fall in the market price shall be calculated based on the foreseeable benefits that the breaching party could have obtained at the time of contract signing and the actual disposal difference. According to Article 584 of the Civil Code, the loss caused by the breach of contract shall be limited, and the party in compliance with the contract shall mitigate...

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27 2026-10

Can I sue the unit if it doesn't give an award to the inventor?

If the unit fails to award the inventor with a reward, the inventor can seek legal protection in accordance with the law. According to Article 15 of the Patent Law, the unit has the obligation to provide the inventor with a reward and compensation for their work-related inventions. The inventor can file a complaint, seek mediation, or initiate arbitration or litigation, the key point being to prov...

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27 2026-10

How long will it take for a patent to lapse if I forget to pay the annual fee?

There is a six-month grace period for late payment of annual patent fees, during which the fees can be paid retroactively. If the fees are not paid after the grace period expires, the patent rights will be terminated. If the patent rights are terminated due to exceeding the deadline, it is possible to request to restore the rights on the basis of legitimate reasons.

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