| The Contract Law of PRC was promulgated in 1999.The new Contract Law estabished the double legisation value of the promotion economical transaction and the safeguard social order.The new Contract Law promoted economic transaction by reducing innnvalid contacts and protected the social order by intervention of governments into the acts which senously damaged the socio-economic order.These regulations are reflected in the provisions of ariticle52,paragraph5 of the New Contract Law:contracts which violate compulsorg regulations of the legal or administrative rules will be invalid. On the basis of absorbing foreign successful expenence,The New Contract Law has made significant adjustment regarding the onginal legislation and has reduced the scope of invalid contratly.But under the current legislation,if all the contracts which violate compulsory regulations are judged to be invalid,it will be difficult for The Contract Law to protect transactions, because many contracts which don ont damage the intenests of society and ciuntry will be invalid.Therefore,the compulsory porvisions must be reasonably defined,identified and applied.The application will be limited to protect she state and public interests.Private areas will no longer be infringed.The understanding and application of the article 52paragraph 5 of The Contract Law is significantly in theory and practice.Therefore,it is necessary to identify the compulsory regulations to determine the validity of contacts. |
