Violation Of Administrative Regulations, The Mandatory Provisions Of The Validity Of The Contract Research

Being legal system to regulate transaction relation, Contract law stipulates the behavioral scope of the parties in the process of transaction, namely what they can do, what they should not do, what they must do. Just through these three behavioral patterns, Contract law designates the parties' will sphere of autonomy, which embodys the restraint of state's will to the parties'will. However, when they don't conform to stipulations of what they should not do and what they must do in the process of transactions, the contract is not certainly void. For example, the third clause of contract law states that the parties to a contract shall have equal legal statas and no party may impose its will on the other parry. When one party violates the stipulation of the third clause and impose his will on the other party, this kind of contract is revocable by the contract law. For another example, general principles of civil law states that agent should enact civil juristic act within the limit of power of attorney in the name of entrusted agent. When agent surpass the power of attorney to enact civil juristic act, the effect of Contract is uncertain.So, the legal consequence of contract violating the compulsory provisions is not certainly invalid. The fifth clause of article 52 in the Contract law stipulates that the contract violating the compulsory provisions of laws and administrative regulations is invalid, which is irrational. The reasons as follows: first, we should consider two aspects'balance in interests to limit contract freedom. The first is balance in interests between the parties, whih demands that the parties should abide by the inherent requirements of transaction law, namely the parties to a contract having equal legal status, the will's expression being real, the transaction content being fair. With these requirement, contract law system stipulates that the parties to a contract shall have egual legal status and no party may impose its will on the other party. When the parties violate the compulsory provisions ,this kind of contract isstated to be revocable, and the ofher party has right to revoke the contract in order to renew the balance of interests. The second is the balance of interests between the parties and state, society and the third party, with these balance of interests, the parties shoud not violate the interests of state, society and the third party. With this, contract law states that the parties should not encroach on these interests. When they violate the compulsory, provisions, this kind of contract is stated to be uncertain or invalid in order to renew the balance of interests, Besides, state has no reason to intervene in the freedom of contract. Second, in our country, the power of government is so strong that they interfer in the social affairs of all kinds. The governments regulate the society by depending on the administrative, regulations, in which are full of many compulsory provisions. But, some compulsory provisions are obligation of Civil subject to the governments which does not limit the contract. So, when the parties violate the compulsory provisions and they do not violate the obligation to the state and society and the third party, the effect of contract is not affected. Third. That the contract violating the compulsory provisions is invalid does not protect the interests of the good-will party.In sum,.the fifth clause of article 52 of Contract law should be revised.