The Application Of Explaining Rules About Standard Contract Terms

The Article41of Chinese Contract Law has ruled three manners toexplain standard contract terms: general explanation rule, contra-proferentemrule, priority of non-standard contract terms. However, these three explainingrules are so simple that always be misunderstood in the course of applying. Interms of general explanation rule, it is too abstract and needed to be explicitand specific by using the explaining rules about common contract terms, thatis to say, handling well the relationship between Article41and Article125ofContract Law; Contra-proferentem rule must be limited in the aspect ofapplying hierarchy and scope, so as to achieve the goals of justice; Thepriority of non-standard contract terms should not be applied to all the casesrelated to explaining standard contract terms, in case of standard contractterm is more favorable to the Receiver, this priority must be appliedaccording to the specific situation.