Research On Invalid Construction Contract And The Legal Consequence

On January 1st,2021,the Civil Code of the People’s Republic of China(hereafter referred to as the Civil Code)went into effect,and the Supreme People’s Court conducted a thorough assessment of judicial interpretations and pertinent normative documents.The Civil Code’s chapter on construction contracts provides a solid foundation for contract signature,performance,and dispute resolution in the construction industry.The Civil Code’s adjustment of construction contract provisions emphasizes the importance of construction contract validity,which is critical for standardizing the construction industry’s development and unifying judicial practice.With the continuous improvement of legislative technique,the relevant laws,regulations,and judicial interpretation of construction project contracts have been revised and adjusted to optimize the expression of legislative words and pay attention to the unity of system and form.New requirements for the comprehension and application of legal provisions have been advocated in judicial practice.Based on the foregoing,it is particularly important to discuss the impact of changing legal restrictions on the construction engineering industry in a systematic manner.The validity of the contract is the key legal issue that should be examined first in construction contract disputes.The validity or invalidity of the contract will have a direct impact on the course of the case and the law’s application,as well as varied legal consequences.In this regard,the validity and legal consequences of construction project contracts are examined from a general to a specific method,based on the conceptual characteristics of construction contracts and the evaluation of contract validity.Construction contracts are dependent upon the general rules of invalidation and the legal consequences of invalidation.However,construction contracts also have their idiosyncrasy,such as invalidation due to un-qualification,beyond qualification and borrowed qualification.The contract must become invalid as a result of failure or invalidation of the bid;Illegal subcontracting or subcontracting causes the contract to be invalid;Failure to obtain approval procedures for the construction project leads to the invalidation of the contract,etc.The exceptional cases of invalidity of these construction contracts are dissected individually.Simultaneously,this research examines the legal implications of a construction contract’s invalidation using a method that combines theory and practice.This research expounds on the judicial concept of the new invalidity discount compensation rules of construction contracts in civil Code from enlarging the applicable scope of discount compensation,strengthening the principle of discount compensation,adapting to the acceptance system,and addressing the disputes in judicial practice.The research additionally places ahead certain suggestions on how to apply the loss identification,construction period claim,quality claim,effectiveness,and malicious defense in the invalid contract damage compensation system.