Ma Kun V. Wang Lihua-a Case Study Research On The Unit Fund-raising Room

During the process of organizational reform, China developed a special type of affordable housing: unit fund-raising room. Nowadays, such construction measure is prohibited by the legislation of China. According to the legislation, units and state organs at all levels shall not hereafter utilize the expropriated or purchased land to engage in housing unit fund-raising room. As a result of the implementation of this provision, unit fund-raising room is called off by the policy, but there are legal disputes occurred in various places during house transactions caused by this special background and historical reason every now and again. In the judgment of the courts at all levels tend to get a different verdict under a same case which related with unit fund-raising room. Focused on the practice affairs, the making of the verdict is hard, because there are different opinions in dealing with the recognition of the validity of the house transaction contract. Thus, this legal issue is particularly important and worth further exploring and analyzing.This dissertation starts with the house transaction dispute related to unit fund-raising room in Gansu province. Firstly, the verdicts of the first instance and the second instance over the same case will be briefed and presented. There will be discussion over this issue, and the theories related will be highlighted. Also, there will be a legal analyze over this issue. The core issue of this article is focused on both the recognition of the validity and forming of the house transaction contract related to the qualification of the party.In the angle of different opinions in the recognition of the validity of the contract and the phenomenon of "different appearance of verdicts under a same case", the legislation in China is based on the respecting for the parties’real intention and encouraging trading. Thus, the scope of the invalidation in contract is reduced. However, it is limited that the practical significance of the judicial practice to determine the effectiveness of the illegal contract. This dissertation will carry out analysis on this issue, and suggest that the effectiveness of illegal contract should be judged in the scope of the public interest. This dissertation will also suggest that under the guidance of the principle of proportionality to deal with the balancing of interests and to determine the effectiveness of the illegal contract. This dissertation also intended to improve the feasibility in judicial practice by exploring such issues.