On The Relation Between Administrative Authorization And Effectiveness Of Contracts

In recent years, the studies on the relation between administrative authorization and effectiveness of contracts are becoming more popular. So does the cases on such issues. In the meantime, it has become a big problem for the scholars and judges to reach a reasonable and unitive conclusion on the relative issues in both theoretical and practical area. This paper starts with the respective analysis of administrative authorization and effectiveness of contracts. On that basis, it lucubrates the relationship between these two systems and goes into the impact which the administrative authorization may have on the effect of the contracts. The contents of this paper are divided into three parts:The first part is about the two systems of administrative authorization and effectiveness of contracts. In the realm of contract law, the administrative approval relies on the results of the judgments on the administrative fitness of the contracts, but not on the authenticity or validity of the contracts. In the system of the effectiveness of contracts, there are four types of the effectiveness of contracts such as validity, invalidity, undetermined validity and undetermined invalidity, which are in the different logical field from the establishment and implementation of the contracts. Thus the form of contract in which the contracts are not entered into force is absolutely not an individual type of the effectiveness of contracts as valid or invalid.The second part mainly elaborates the impacts of the administrative authorization on the enforceability of the contracts. If a contract gets the approval by the administrative organization, it comes into force. If it is refused, it certainly cannot come into force. However, in practice, some contracts which have been approved by the administrative organization may not come into force just because the administrative approval does not rely on the examination of the authenticity or validity of the contracts. Moreover, the contracts which are not submitted to the administrative organization ought to be valid on account that they cannot come into force if there are invalid factors in the contracts.The third part moves forward to the analysis on the obligation of the application and the legal aftermath to violate it. The contracts which are not submitted to the administrative organization are not entered into force. However, the obligation of the application and the relative articles in such contracts are enforceable. If one party betrays such contract obligations, he or she should be responded to fulfill the application and compensate for loss of the other party. In such cases, it should be allow that the victims apply for the administrative approval if conditions permit and the third party come into assistance if it needs. And it also should be cleared that dissolution is one of the permitted way to eliminate the relationship of the contracts even when they are not submitted to the administrative organization. Likewise in such conditions, compensation for loss is involved. The difference is that the compensation for the loss of the executive interests is limited to some extent.