Understanding and Application of the Supreme People's Court's "Provisions on Several Issues Concerning the Trial of Futures Dispute Cases"

Author: Jiang Bixin
Publisher:
Publish Date: 2003-08-01
Features: The "Regulations" consist of 13 parts and 63 articles, providing specific provisions on the principles for handling futures dispute cases, jurisdiction, entities responsible for liability, invalid contract liability, transaction behavior liability, overdraft trading liability, forced liquidation liability, physical delivery liability, guarantee contract performance liability, rights and obligations liability, burden of proof, preservation and enforcement, as well as the effective date and scope of application of this judicial interpretation. The "Regulations" clarify three fundamental principles for handling futures dispute cases—principle of risk and benefit consistency, principle of respecting legitimate agreements of the parties, and principle of consistency between fault and liability. That is, the people's court should equally protect the legitimate rights and interests of all parties involved in futures dispute cases in accordance with the law, correctly determine the risk liabilities that each party should bear, and maintain the order of the futures market; strictly determine the liability of the defaulting party based on the agreements made by the parties in the contract, except when the agreements violate the mandatory provisions of laws and administrative regulations; and determine the civil liabilities of each party based on their fault (whether or not and to what extent).