| As an essential form of transaction, the contract plays an important role in social life. Generally speaking, there is effect binding in the contract as soon as the parties set it up. However, there will be a condition in the contract which is set up but ineffective when the contract shall be registered or approved but not in fact. it is caused by the appearance of the Pararaph 2 of Article 44 in the Contract Law. From the perspective of current theories researches, Chinese scholars’ legitimacy researches on approval and registration are not perfect. Researches on the concepts of approval,registration and validity of contract are not incisive. The researchers do not understand clearly which validity situation does the contract, with no approval and registration, belong to. What’s more, they just analyze the problems snagged in the practices simply and carelessly in most cases. As a result, the judicial adjudication is not unified in practice. Validity and independence issues of the approval obligation come as well in the context of not yet effective contract. By comparison, countries like Germany do not entitle the registration and approval to affect the validity of the contract. But actually, from the perspective of the contract content, when the contract is related to the national interest, the important the national economy and people’s livelihood, the intervention of the public power help to prevent the country and public interest from being damaged. So, it’s of legitimacy. In term of the validity of the contract with no approval and registration, it is established by the contract, which shows the free meaning of the two parties. Therefore, though the contract is ineffective, it would produce the same binding force. Approval of the contract is not in effect on the obligation is due for approval is a prerequisite for the entry into force of the contract, so, even if the contract is not in force, approval obligations can also independently take effect. |
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