Construction of model contract law for Guangdong-Macao intensive cooperation zone in Hengqin

Abstract

The Guangdong-Macao Intensive Cooperation Zone in Hengqin (Intensive Cooperation Zone) has emerged as a pivotal economic hub, attracting Macao residents and enterprises. However, disparities in contract-related rules between the zone and Macao have led to legal challenges. This article delves into a comparative study of contract laws between the People’s Republic of China (PRC) and Macao. Analyzing key facets such as pacta sunt servanda, freedom of contract, principle of equity, contract form, principles of interpretation, and termination of contract, the study identifies nuanced differences. Recognizing the imperative of aligning contract laws for the Intensive Cooperation Zone’s development, the article advocates for a unified legal environment. To achieve this, the author proposes a model contract law that prioritises the United Nations Convention on Contracts for the International Sale of Goods (CISG) as the basis. Notably, Macao’s contract-related rules should govern aspects not covered by the CISG given the policy trend in the Intensive Cooperation Zone. The proposed model law serves as a foundation for legislative reform, aiming to address the existing disparities and promote the Intensive Cooperation Zone’s economic growth.