Chapter VIII Conciliation

Article 85 In the trial of civil cases, the people's court shall distinguish between right and wrong on the basis of the facts being clear and conduct conciliation between the parties on a voluntary basis.

Article 86 When a people's court conducts conciliation, a single judge or a collegial panel may preside over it. Conciliation shall be conducted on the spot as much as possible.

When a people's court conducts conciliation, it may employ simplified methods to notify the parties concerned and the witnesses to appear in court.

Article 87 When a people's court conducts conciliation, it may invite the units or individuals concerned to come to its assistance. The units or individuals invited shall assist the people's court in conciliation.

Article 88 A settlement agreement reached between the two parties through conciliation must be of their own free will and without compulsion. The content of the settlement agreement shall not contravene the law.

Article 89 When a settlement agreement through conciliation is reached, the people's court shall draw up a conciliation statement. The conciliation statement shall clearly set forth the claims, the facts of the case, and the result of the conciliation.

The conciliation statement shall be signed by the judges and the court clerk, sealed by the people's court, and served on both parties.

Once it is receipted by the two parties concerned, the conciliation statement shall become legally effective.

Article 90 The people's court need not draw up a conciliation statement for the following cases when a settlement agreement is reached through conciliation:

(1) divorce cases in which both parties have become reconciled after conciliation;

(2) cases in which adoptive relationship has been maintained through conciliation;

(3) cases in which the claims can be immediately satisfied; and

(4) other cases that do not require a conciliation statement.

Any settlement agreement that needs no conciliation statement shall be entered into the written record and shall become legally effective after being signed or sealed by both parties concerned, by the judge and by the court clerk.

Article 91 If no agreement is reached through conciliation or if either party backs out of the settlement agreement before the conciliation statement is served, the people's court shall render a judgment without delay.

Chapter IX Property Preservation and Advance Execution

Article 92 In the cases where the execution of a judgment may become impossible or difficult because of the acts of either party or for other reasons, the people's court may, at the application of the other party, order the adoption of measures for property preservation. In the absence of such application, the people's court may of itself, when necessary, order the adoption of measures for property preservation.

In adopting property preservation measures, the people's court may enjoin the applicant to provide security; if the applicant fails to do so, his application shall be rejected.

After receiving an application, the people's court must, if the case is urgent, make an order within 48 hours; if the order for the adoption of property preservation measures is made, the execution thereof shall begin immediately.

Article 93 Any interested party whose lawful rights and interests would, due to urgent circumstances, suffer irretrievable damage without immediately applying for property preservation, may, before filing a lawsuit, apply to the people's court for the adoption of property preservation measures. The applicant must provide security; if he fails to do so, his application shall be rejected.

After receiving an application, the people's court must make an order within 48 hours; if the court orders the adoption of property preservation measures, the execution thereof shall begin immediately.

If the applicant fails to bring an action within 15 days after the people's court has adopted the preservation measures, the people's court shall cancel the property preservation.

Article 94 Property preservation shall be limited to the scope of the claims or to the property relevant to the case.

Property preservation shall be effected by sealing up, distraining, freezing or other methods as prescribed by the law.

After the people's court has frozen the property, it shall promptly notify the person whose property has been frozen.

The property that has already been sealed up or frozen shall not be sealed up or frozen for a second time.