Invalid Construction Contract Legal Issues

Recently, the construction market in our country presents a whole picture of booming development, and becomes the pillar industry of national economy, making indispensable contribution to country's economic development and social progress.Therefore,whether the construction market can develop orderly or not will directly influence the healthy development of the national economy. However, the construction market of our coutry always suffers frequent contract violation in laws and regulations, these behavior of contracts violation adversely affect healthy development of construction market. The worst of all is that they even cause great damage to the country, people's livelihood and property, and due to the validity of contract, the related legal department must be prudent to treat. In this thesis, the very object of the thesis is to make both theoretical and practical discuss about the validity of those bad construction contract actions. Currently, in our country,the judicial interpretations have specific provision about common invalid construction contract, but the provisions of the judicial interpretation cannot cover all of invalid construction contract behavior in the country's construction market, in which their theory in some invalid contract differ.This thesis, through summarizing the laws and the relevant provisions of the judicial interpretation with actual situation in China, concludes several common invalid construction contract type in the construction contract field. Combining existing theory, practice, and relevant opinions on the effectiveness of these contracts, this thesis will make comments towards the validity of the contracts, which tries to find invalid theoretical basis points for a few high-frequently-happened bad contracts in construction contract areas, and in practice find suitable evaluation standards for the judge to rule contract effectiveness.This thesis, firstly from the perspective of effective establishment of construction, analyzing the necessary conditions for the effective establishment of construction, and then find the most basic proof for invalid contracts. Then, this thesis analyzed again the influence of mandatory provisions toward effective establishment of construction, making theoretical interpretation for judging the validity of established construction contracts.As follows, after concluding several common invalid construction in our coutry's construction constract area, the thesis will respectively analyze them. Among which, the text rather make new footnote for invalid constuction constract by applying the theory of transaction and cost in economics, and evaluate the principle of potency correction under the circumstances of invalid construction constract.In the end of the article, make enough detail and explaination for the legal consequence of invalid construction contract.As the author of this article,I hope that the negative evaluation toward bad contract action by law practice and theory in our country,not only promote healthy development of construction market and construction industry, but also ensure the quality of construction projects, fairly protect the lawful rights and interests of all parties concerned in the building project construction contract.