A Research Regarding Sham Transaction Of The General Provisions Of The Civil Code Of China

The hypocrisy of sham transaction consists of sham transaction and hidden transaction.According to the provisions of Article 146 of The General Privisions of The Civil Code of the People's Republic of China,hypocrisy is invalid and the effectiveness of concealment is determined in accordance with the applicable legal provisions.The civil laws of Germany,France,and Taiwan all stipulate that the hypocrisy is invalid,but the scope of this invalidation is different.This difference in the degree of invalidity directly affects the right of a good faith third person to claim that the sham transaction is effective.For the effectiveness of hidden acts,it is decided by applying the corresponding legal norms.In regard to the protection of third parties in good faith,the German Civil Code in the context of the mode of change of real rights of formal rights and property rights used the system of good faith to provide protection to third parties of goodwill,and took the ambiguous model of changes in property rights.The French Civil Code provides general protection to third parties in good faith with the rule of “not to oppose good-natured third parties”.The special feature of the civil law in Taiwan is that while it is constructing a system of goodwill to protect third parties with goodwill,it has added provisions for not fighting against the provisions of the hypocrisy of sham transaction.Article 146 of The General Privisions of The Civil Code of the People's Republic of China stipulates that hypocrites are absolutely ineffective,and that concealed conduct is subject to corresponding legal provisions to determine its validity.In the context of adopting a pattern of changes in realism and principles of publicism,Article 146 does not establish general protection clauses for third parties in good faith,but protects third parties in good faith by applying a system of good faith acquisition.Fundamentally,the chaos on the system is avoided,so that third parties in good faith are protected more systematically.