(These clauses are selected from The Civil Code of the People’s Republic of China translated and authored by Steve Li and Robert Zhang, international arbitration lawyers registered in Shanghai, China, and published by Kindle Unlimited. No reproduction is allowed unless authorized by the authors.)
Article 172 A business conducted in the name of the principal by a person without or beyond authorization or whose authorization has been terminated shall be valid if the counterparty reasonably believed that the person was authorized to conduct the business.