On Void Contract

In order to comprehensively understand and clearly define void contract, this article analyzes in detail the concept, characteristics, determination and legal consequences of void contract. This article contains three parts, an introduction, the main text and an epilogue. The main text includes three sections.In the introduction, the author stresses the important role contract freedom and parties'autonomy play in market economy. Meanwhile, the author also point out that void contract system is an double-blade sword. On one hand, It is a useful supplement to contract freedom. On the other hand, it also contains risk of impairing parties'autonomy. Therefore, to define void contract accurately is of great significance.The first section introduces the definition of void contract at first. Following that, the author gives the definition of void contract: void contract is a contract that has come into existence but does not meet the requirements for a valid contract and cannot be repaired, should not bind on the parties from the very beginning and should be cancelled by the State. Then, the author analyzes whether void contract falls in the scope of contract. There is also a comparative study of nonexistence of contract, invalidity of contract, absolutely void contract and relatively void contract. In the end of this section, the author concludes four characteristics of void contract.Section 2 is the emphasis of this article. When discussing the requirements for a valid contract, the author lays his emphasis on the issue of person without civil act capability conducting civil act. The author believes that a person without civil act capability has no qualification to conduct civil act, so that such person's purely profitable act should be deemed void for subject disqualification. After analyzing Article 52 of the PRC Contract Law, the author raises some proposals for its improvement.Section 3 deals with the legal consequences of void contract. Scholars have much debate on the basis of return of property when a contract is deemed void. After comparing various opinions, the author maintains that such basis lies in the contest of unjust enrichment and return of property. As to the basis of damages, tort law theories and contract conclusion negligence theories are to some extent both applicable.In the epilogue, the author points out that China's void contract system needs improvement and the scope of void contract needs to be reduced.