On Limitation Of Format Contract Provisions

Since the beginning of the20th century, with characteristics ofenlargement and industrialization of commodity economy development, thefact that economic transactions become increasingly frequent has madetraditional contracting mode overloading in terms of negotiatingcontracts one by one. As a new type of contracting mode, format contractprovisions (hereinafter referred to as “format provisions”) has becomethe inevitable result for the need of social economy, and it is widelyused in insurance, traffic, banks and other recently emergent industries.With the characteristics of pre-determinacy and long-time persistence,format provisions can reduce transaction costs, promote economicefficiency, estimate contract risks and secure transaction safety in theprocess of economic activities. However, in the practice of formatprovisions, one party with the right of prior-draft makes the use of itsown advantage and enlarge its own rights and interests by the drive ofinterests. Meanwhile, format provisions maybe leads to imbalance ofrights between two parties, and its disadvantage of contract disputescomes up next. How to protect rights of two parties and serve economybetter in the aim of managing advantages by effective regulations offormat provisions has already become a important topic for differentcountries worldwide.Starting with basic issues of format provisions, this paper deeplyanalyzes its value and disadvantages. Combined with approaches ofregulating format provisions effectively used by different countries,this paper elaborates the inadequacy of protecting rights of personconcerned in China, and points out that China should learn advancedtheories and approaches of other countries, further promote theregulations of format provisions and realize the protection of rights fortwo parties of format provisions with the combination of characteristicsof socialism market economy.This paper is composed of three chapters,which are the summary offormat provisions, the current situation and deficiency of the equityprotection of both interested parties of the format provisions,and howto perfect both interested parties’ equity protection. In the firstchapter, the author explains the definition, development, feature, valueand default of the format provisions; according to the4D regulationsystem generally used in different countries. In the second chapter,theauthor analyzes from four different aspects the current situation anddeficiency of the equity protection of both interested parties of the format provisions in our country, which are legislation, judicature,administration and social regulation. And in the last chapter, the authordiscusses specifically regulative methods needed to be perfected in everyphase according to a sequence and uses as clue the draft, establishment,performance, dispute, relief and elimination of the format provisions,in order to reinforce the equity protection of both interested partiesof the format provisions.The author emphasize that in every phase of the equity protection ofthe interested party, it is necessary to connect methods of legislation,judicature, administration and social regulation for making every methodplay its role effectively，as to balance mutual equity, maintain justiceand to stabilize economic development.