Contract Law in Hong Kong
Contract Law in Hong KongUpdated on Thursday 19th May 2016
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Contractual capacity in Hong Kong
The contract law in Hong Kong is the sum of rules, regulations and legal provisions which govern the conclusion of agreements, regardless of their purpose. Two parties interested in entering an agreement must be fully aware of the legal implications of signing such a document.
The contract law covers a wide range of contracts but some areas are regulated through specific laws in the field in which they are concluded. Employment contracts are such an example and the reason for this is that the employment law has its own particularities compared to the common law.
While any individual or corporation is entitled to conclude a contract, the law restricts this capacity in case of minors, mentally ill individuals and corporations. The latter must also pay attention to the Company Law when engaging in any economic or business agreements.
Before entering into any contractual relationship, either for business or personal purposes, it is advisable to seek the services provided by the representatives at a law firm in Hong Kong. A lawyer will be able to help you draft or edit a contract and understand the real legal implications of entering a contractual relationship.
Laws governing agreements in Hong Kong
The Hong Kong contract law, like the common law, has been influenced by the common law of England. The legal background that influences any written agreement between two parties in Hong Kong is usually the Basic Law or the common law. Thus, the contract can include elements of civil law, commercial law, local law or other legislation adherent to the field in which the contract will be enforced.
Concluding an agreement in Hong Kong
There are several elements that must be present in every contract in order for it to be considered valid:
- the intention to enter into a legal relation;
- the offer made through the contract followed by the acceptance of the other party;
- consideration: benefits awarded to the party accepting the offer;
- capacity: the legal ability to enter into an agreement.
The contract can stipulate the manner in which it can be terminated and how damages and remedies can be awarded to one of the parties if the other has failed to meet its duties and responsibilities under the agreement.
In case of legal disputes, a lawyer will be able to help you find the best way to solve the case, either through litigation, arbitration or mediation.
You can contact our law firm in Hong Kong for more details on concluding any types of contracts and legal assistance for a variety of matters.