The Significant Misconception System And Its Application In Auction Contract

I have handled cases and cases of disputes over auction contracts because of work. A lot ofvendees in such cases sue for rescinding the auction contract based on significant misconception.My first feeling is that the significant misconception system doesn’t apply to auction contract.However, after searching relevant cases when I was handling the aforesaid cases, the result cameto me that there are many cases, which the court finally adjudged that the auction contract wasrescinded because it was made under significant misconception, including cases declared by theSupreme People’s Court. For these reasons, I wrote the thesis.This thesis includes three parts. The first part is a necessary analysis of the concept of thesignificant misconception system. Firstly, the thesis introduces other scholars’ study of thehistorical evolution of the word “significant misconception”(in Chinese version). Throughanalyzing the meaning of the word “significant misconception” as a legal terminology in theformer Soviet Union and the early new China era, I clarify the reasons why the mistake systemprovided by the foreign law shall be the model and the reference system of the discussion in thethesis. Secondly, the thesis introduces detailedly the mistake system provided by Germany civillaw and the development of the legislation of the mistake system in other civil law countries,common law countries and international treaties, which is the groundwork for correcting themisunderstanding of the differences between the significant misconception system and the mistakesystem in the civil law research field in our country. Then in the method of comparison, and themistake system as the reference system, I clarify how the significant misconception system is inlex lata of China. The second part analyses briefly the connotation and denotation of auction contract in Chinese lawso as to confirm the scope of the study. Then through making a comparative analysis amongauction contract, purchase and sale contract and bidding and bid contract, I summarize thecharacteristics of auction contract, according to which I come up with the viewpoints in the laterpart of the thesis.In the third part, firstly I restudy the case “Trierer Weinversteigerungsfall”, a classic case in thefield of the intent indication system, from two different angles: civil law and commercial law.Then I identify and analyze the existing legal provisions and academic viewpoints of thesignificant misconception system’s application in auction contract. As conclusion, based on theviewpoints in former parts of the thesis, I discuss why the significant misconception systemdoesn’t apply to auction contract in six aspects: modification of the contract, interest measurement,misconception situations in practice, rechtsschein theorie, the term providing that the auctioneercan’t assure that the lot is genuine and the assurance liability in flaw.Though my viewpoints in the third part are very clear, in the conclusion of the thesis, I think thelaw shall be modified in the direction of my viewpoints in the thesis, meanwhile I specify myworry and consideration about it.