This paper briefly introduces a recent history of the development of the Chinese
contract law. It then analyses various specific contract law issues including formation of the
contract, liability for breach of contract and the notion of subrogation. This paper finds that PRC’s
contract law presents a hybrid version with key concepts from both Common law tradition and the
Civil law tradition. This hybrid is however unique in the way of enforcing contracting parties’
rights/obligations in many contract matters. Unfortunately, without a proper case recording system
in the jurisdiction, the unique Chinese legal method is somehow difficult to solve complex contract
issues. This paper then argues further that there is a need to update the current system in the law of
contract, particular in dealing with the right of subrogation.