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522 APPENDIX 2 People's Congress and its Standing Committee and the administrative regula- tions of the State Council,not on local regulations and administrative rules. 10.006 Article 5 Where a people's court holds a retrial in a case in which a final judgment was made before the implementation of Contract Law,Contract Law does not apply. II.Limitation of Action 10.007 Article 6 Where the infringement of the rights of a party to a dispute arising from a technology contract occurred before the implementation of Contract Law,the people's court affords no protection if there is more than one year between the date on which the party knows or ought to know the infringement and the date of the implementation of Contract Law;if there is less than one year,the limitation period for bringing a lawsuit is two years. 10.008 Article 7 Where the infringement of the rights of a party to a dispute arising from a contract for the import or export of technology occurred before the implemen- tation of Contract Law,the people's court affords no protection if there are more than two years between the date on which the party knows or ought to know the infringement and the date of the implementation of Contract Law;if there are less than two years,the limitation period for bringing a lawsuit is four years. 10.009 Article 8 The period of "one year"mentioned in art.55 of Contract Law and the period of "five years"mentioned in arts.75 and 104(2)are fixed periods,and the provisions on the suspension,interruption and extension of limitation of action do not apply. III.Effectiveness of Contract 10.010 Article 9 According to art.442)of Contract Law,where laws or administrative regulations provide that a contract may only become effective after the approval procedure or procedures such as approval and registration is carried out,the people's court shall find the contract not to have become effective,if the parties have not carried out the approval procedure or procedures such as approval and registration before the conclusion of the court debate at the trial of the first instance;where laws or administrative regulations provide that the registration procedure shall be carried out in respect of a contract,but do not provide that a contract becomes effective only after the registration,the effectiveness of the contract is not affected by the failure of the parties to carry out the registration procedure,but ownership and other real rights in the subject matter of the contract shall not be transferred. Circumstances such as modification,transfer and termination of contract pro- vided for in arts.77(2),87 and 962)of Contract Law shall be dealt with according to the preceding paragraph. 10.011 Article 10 Where the parties conclude a contract beyond their scope of business, the people's court shall not find the contract void on that ground,unless the parties have violated provisions whereby the state restricts or requires special
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