I. The Supreme People’s Court Issued the Judicial Interpretation on the Issue concerning the Application of Law in the Trial of Disputes Arising from Purchase and Sale Contracts

On 6^th June,2012, the Supreme People’s Court published the Interpretation of Supreme People’s Court on the Issue concerning the Application of Law in the trial of Dispute Arising from Purchase and Sale Contract ( the “ Judicial Interpretation”), which becomes a remarkable interpretation on the issues concerning purchase and sale contracts after the promulgation of Property Law. The Judicial Interpretation is consisted of 46 articles, completely covering the conclusion and validity of a purchase and sale contract, the delivery and transfer of title, risk bearing, inspection of objectives, liability for breach, retention of title and so on. The Judicial Interpretation will come into force on 1^st July, 2012, and it will be applied to the cases that haven’t been finally sentenced when the Judicial Interpretation executes, however, it shall not be applied in the case that has been sentenced before the implementation of the Judicial Interpretation but the retrial is initiated.