Q: What are the consequences breaching the precontract?
From:
Justice Bureau of Shenzhen Municipality
Updated:
2021-08-11 15:08
A: Parties are legally bound by the precontract when it comes into effect. The party who breaches a precontract by refusing to enter a formal contract shall assume the liability of contract. Due to the principle of the freedom of contract, the Chinese courts will not force a party to conclude a contract.