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8Article 564
Where a time limit for exercising the right to rescind the contract is provided by law or agreed by the parties, if the parties have not exercised such right upon expiration of the period, such a right shall be extinguished.
Where no time limit for exercising the right to rescind the contract is provided by law or agreed by the parties, such a right shall be extinguished if the party with the right to rescission does not exercise such right within one year after he knows or should have known the causes for rescission, or within a reasonable period of time after being demanded by the other party.
第五百六十四条 法律规定或者当事人约定解除权行使期限，期限届满当事人不行使的，该权利消灭。
法律没有规定或者当事人没有约定解除权行使期限，自解除权人知道或者应当知道解除事由之日起一年内不行使，或者经对方催告后在合理期限内不行使的，该权利消灭。
Article 565
Where one of the parties requests to rescind the contract in accordance with law, the other party shall be duly notified. The contract shall be rescinded at the time the notice reaches the other party, or, where the notice states that the contract shall beautomatically rescinded if the debtor fails to perform his obligation within a specified period of time, the contrct shall be rescinded when the debtor fails to perform the obligation upon expiration of such specified period of time. Where the other party has objections to the rescission of the contract, either party may request the people's court or an arbitration institution to determine the validity of the rescission.
Where one of the parties, without notifying the other party, requests the rescission of the contract by directly filing a lawsuit or applying for arbitration in accordance with law, and the people’s court or arbitration institution confirms such request, the contract shall be rescinded when a duplicated copy of the complaint or the application letter for arbitration is served on the other party.
第五百六十五条 当事人一方依法主张解除合同的，应当通知对方。合同自通知到达对方时解除；通知载明债务人在一定期限内不履行债务则合同自动解除，债务人在该期限内未履行债务的，合同自通知载明的期限届满时解除。对方对解除合同有异议的，任何一方当事人均可以请求人民法院或者仲裁机构确认解除行为的效力。
当事人一方未通知对方，直接以提起诉讼或者申请仲裁的方式依法主张解除合同，人民法院或者仲裁机构确认该主张的，合同自起诉状副本或者仲裁申请书副本送达对方时解除。
Article 566
After a contract is rescinded, where the obligations have not yet been performed, the performance shall cease; where the obligations have already been performed, the parties may, taking into account the performance status and the nature of the contract, request restoration to the original status or other remedial measures taken, and have the right to request for compensation for losses.
Where a contract is rescinded due to a default, the party with the right to rescind the contract may request the breaching party to bear default liability, unless otherwise agreed by the parties.
After the principal contract is rescinded, a security provider shall still be obligated to secure the debtor’s liability, unless otherwise agreed in the security contract.
第五百六十六条 合同解除后，尚未履行的，终止履行；已经履行的，根据履行情况和合同性质，当事人可以请求恢复原状或者采取其他补救措施，并有权请求赔偿损失。
合同因违约解除的，解除权人可以请求违约方承担违约责任，但是当事人另有约定的除外。
主合同解除后，担保人对债务人应当承担的民事责任仍应当承担担保责任，但是担保合同另有约定的除外。
Article 567
Termination of the relationship of rights and obligations under a contract does not affect the validity of the contract clauses regarding settlement and liquidation.
第五百六十七条 合同的权利义务关系终止，不影响合同中结算和清理条款的效力。
Article 568
Where the parties mutually owe obligations to each other, and the subject matter of the obligations are of the same kind and quality, any party may offset his obligation against the due obligation of the other party, unless the obligation cannot be offset by virture of the nature of the obligations, or in accordance with the agreements by the parties or the provisions of law.
A party who claims a set-off shall notify the other party. The notice shall become effective when it reaches the other party. No conditions or time limit may be attached to the set-off.
第五百六十八条 当事人互负债务，该债务的标的物种类、品质相同的，任何一方可以将自己的债务与对方的到期债务抵销；但是，根据债务性质、按照当事人约定或者依照法律规定不得抵销的除外。
当事人主张抵销的，应当通知对方。通知自到达对方时生效。抵销不得附条件或者附期限。
Article 569
Where the parties mutually owe obligations to each other and the subject matter of the obligations are not of the same kind or quality, the obligations may also be offset upon agreement by the parties through consultation.
第五百六十九条 当事人互负债务，标的物种类、品质不相同的，经协商一致，也可以抵销。
The parties may agree that, upon default by a party, a certain amount of liquidated damages shall be paid to the other party according to the circumstance of the breach, or the parties may agree on the method of calculating the compensation for losses arising from the breach.
Where the agreed liquidated damages are lower than the loss caused, the people's court or an arbitration institution may increase the amount upon request of a party. Where the agreed liquidated damages are excessively higher than the loss caused, the people's court or an arbitration institution may make appropriate reduction upon request of a party.
Where the parties agree on the liquidated damages for delayed performance, the breaching party shall continue to perform the obligation after paying the liquidated damages.
第五百八十五条 当事人可以约定一方违约时应当根据违约情况向对方支付一定数额的违约金，也可以约定因违约产生的损失赔偿额的计算方法。
约定的违约金低于造成的损失的，人民法院或者仲裁机构可以根据当事人的请求予以增加；约定的违约金过分高于造成的损失的，人民法院或者仲裁机构可以根据当事人的请求予以适当减少。
当事人就迟延履行约定违约金的，违约方支付违约金后，还应当履行债务。
Article 586
The parties may agree that one party deposits earnest money to the other party to secure his claim. An earnest money deposit contract becomes effective upon actual delivery of the earnest money.
The amount of the earnest money shall be agreed by the parties, except that it shall not exceed 20% of the value of the object of the principal contract, and any excessive part does not have the effect as earnest money. Where the amount of the earnest money actually delivered is more or less than the agreed amount, the agreed amount of the earnest money shall be deemed to have been changed.
第五百八十六条 当事人可以约定一方向对方给付定金作为债权的担保。定金合同自实际交付定金时成立。
定金的数额由当事人约定；但是，不得超过主合同标的额的百分之二十，超过部分不产生定金的效力。实际交付的定金数额多于或者少于约定数额的，视为变更约定的定金数额。