Comment On The Case Of The House Selling Contract Between The New Century Company And The Marina Company

We often see that local government use public funds to invest in real estate projects in order to promote the region's economic development.And there are more and more cases on government investment projects construction and sales.This article selected case:the New Century Business Building is a government investment project.The Management Committee of Development Zone entrusts the New Century Company with agent construction.The houses are sold in the trading center of public resources after completion.The Marina Company does not meet the bidding qualifications listed in bulletin which were set up by the Development Zone.But it signs "Commercial Housing Sales Contract" with the New Century Company and eventually buys the house involved.The New Century Company thinks the Marina Company's behavior harm the public interest,and requests the court to determine the contract invalid.There are multiple dispute focus in the case.First,whether the new century is eligibility plaintiff.Second, the Development Zone's behavior that setting up the qualifications is legal or not.Third,what is the validity of the contract. Because of the house related to Funds of public finance and the relevant provisions of the law are unclear or too principled, there are many problems when the courts deal with the details related to controversial points and there are different results found about effectiveness of the contract.In this paper,I analyze the dispute focus systematically based on the basic facts of the case and existing laws, refer to theoretical knowledge of many disciplines and use methods of deductive reasoning and interest weighing.I point out he deficiencies of the judgments and make recommendations about the case.I hope to be helpful in dealing with similar cases.The main points as follows:first,the Agent Construction Contract is not equivalent to the Commission Contract.According to the special nature of the Agent Construction Contract,the New Century Company has been fully authorized by the Development Zone in the construction and sales phase of the project,and it can establish legal relationships with the third party and assume responsibility independently within authorized ranges.According to the principle of relativity of contracts,the New Century Company is the qualified accuser.Second,the Development Zone's behavior that setting up the qualifications belong to government economic behaviors which should be regulated based on public law system.When the Marina Company has objections to the above behavior,it should file an administrative lawsuit.Third,the bidding eligibility conditions which the Development Zone set are not the necessary general order of social existence and development, it can not be directly regarded as social public interest.The Marina Company neither violate the mandatory provisions of the law nor harm the public interest.The contract involved is valid.