On The Validity Of The Contract

The effect of contracts is the crucial problem in Contract Law system. The recognition of the effect of contracts not only has something to do with the forming of Contract Law relationship, but is the proof which decides different responsibilities of the parties. This dissertation studies the deeper meaning of the effect of definition , source and the content of contracts, from the aspect of the basic theory of laws , and demonstrate the similarities and differences of the forming , effect and its taking effect in contracts . Later , gives a brief introduction on the common law system represented by Britain and the continental law system represented by Germany and analyzes the present situation of the academic study in the effect of contracts and raises some problems in it.The basic principles of the effect of contracts are the mode observed by the parties taking part in the dealing, and every system and rule of the effect is from the basic principle. This dissertation summarized four basic principles of deciding the effect of contracts ,that is, equality and volunteer principle, fair and trust principle, promote the dealing principle, and public order and good customs principle, then further the study on the meaning , content and function of every principle.The contracts which had been formed can be taken into effect only when it satisfies the conditions in laws. This dissertation studies the historic transformation of the conditions of the effect before and after the enforcement of the new Contract Law. Many valid and defect contract are considered invalid before the enforcement of the new Contract Law. The new Contract Law pays much attention to not only protecting economic order , but also encouraging dealings, and promote the construction of socialism. According to the new Contract Law the effective conditions have two kinds: general effective conditions and special effective conditions.According to the different results when the assessment by the law when contracts form, this dissertation divides the present effects of contracts into four groups: valid contracts, invalid contracts, indefinite contracts and changeable or cancelable contracts, and analyzes the differences of contracts in different level of effect. The article finally offers two suggestions of lawmaking.