Unilateral Contracts are Enforceable Under The Contract Law

if a party announces publicly that it will make a payment to any person who completes a certain task, this is a contract enforceable under the contract law.

This provision makes clear that unilateral contracts are enforceable under the Contract Law. This clarifies a difficult issue. The plain wording of the Contract Law suggests that only multi-party contracts fall within the scope of the Contract Law. This Explanation would exclude unilateral contracts of reward or gift. However, such an exclusion is not consistent with other interpretations of the Contract Law and actual judicial practice in China. This clarifies the matter and makes clear that unilateral contracts are valid under Chinese law.

In this regard, note that China follows the German approach to contracts and has no requirement for consideration. Thus, a “naked promise” is enforceable under Chinese law.

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