Study On Legal Effect Of Envalid Contract

The validity of contracts is a essential part of Contract Law .As part of its system, invalid contracts play a irreplaceable and vital role when it comes to maintaining litigants'legal rights, protecting the safety of transactions, as well as promoting harmonious development of economic health in marketing economic relations.This article is consisting of four chapters and the epilogue.The first part is the analysis of the effectiveness of invalid contracts, mainly discussed the particular problems concerned with the invalidity and effectiveness of invalid contracts. About invalid contracts, the Article 52 in China's "Contract Law" mainly has following contracts: contracts harmful to the country,community or the third party's interests; Contracts hidden illegal purposes with legal forms; contracts against the mandatory provisions of law and administrative regulations. To contracts that is harmful to the public interests of country,community and society, as well as against the mandatory provisions of law and administrative regulations , their effectiveness should be eternal. In fact, legislator's considerations over this legislative policy are positive and favorable in practice. Whereas, it's so sensitive to regard contracts harmful to the third party's interests as the area of invalid contracts.The second part discussed the first legal consequence of invalid contracts: the recovery of property. The article primarily described scholar's different opinions on the nature of claim for the recovery of the property .On top of that, whether the claim is property or creditor's right when the contract is invalid was discussed. This article argued that the movable and immovable property restitution claims should be property claims, which is also in line with provisions on the changes of property in our "Property Law". For money and other rights (such as intellectual property, etc.) should be the restitution claims of unjust enrichment, which is of creditor's rights. Under certain circumstances, the competitive and cooperate relations should also be recognized between all property and unjust enrichment restitution claims.The third part discussed the second legal consequence of the invalid contracts: damages. After the contract is declared invalid, the litigants should be prepared to pay the cost of contract, which is to perform or performed based on their reliance on the contract, except for property gained from the performance of the contract. They can request the fault litigant for compensation, whose nature of liability is treaty fault. However, as a litigant causes the relative loss to person or property as a result of mistakes, the application of liability on treaty fault cannot solve the problem, but should be tort liability.The fourth part discussed the application of limitation of actions upon invalid contracts, including the confirmation of the application, as well as the relevant rights and problems concerning its starting point.