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In this section of the service contract the nature of the contract is underlined. The introduction to this section makes clear that an agreement for services between Party A and B is reached based on mutual consent in accordance with the PRC Contract Law and not the PRC Labor Contract Law, which would apply to the direct employment of personnel.

In this section Party A and B have the possibility to agree whether subcontracting the assignment, delegation to subordinates or others or assignment to other third parties is allowed. If allowed conditions applicable shall be listed here. Liability for breach of the agreement by a third party is further discussed in unit 7.

Figure 2 provides a sample text included in service agreements to underline that the contract constitutes a service relationship and not an employment relationship.