The difference between a valid contract and an invalid contract

The validity of a contract is regulated by national law, and an invalid contract is a contract that does not meet the requirements of the law.

Referring to Article 12 of the Contract Law of the People's Republic of China, the content of the contract shall be agreed upon by the parties, and generally include the following clauses: (1) the names or names and addresses of the parties; (2) the subject matter; (3) Quantity; (4) Quality; (5) Price or remuneration; (6) The time limit, place and method of performance; (7) Liability for breach of contract; (8) Methods of dispute resolution. The parties may conclude a contract with reference to the model texts of various types of contracts.

Chapter 3 of the Contract Law also provides a detailed description of the validity of a contract, including: Article 52 shall invalidate a contract under any of the following circumstances: (1) one party concludes a contract by means of fraud or coercion, which damages the interests of the state; (2) Malicious collusion, harming the interests of the state, the collective, or a third party; (3) Concealing illegal purposes in a lawful form; (4) harming the public interest; (5) Violating mandatory provisions of laws and administrative regulations.

Article 53 The following exemption clauses in a contract are invalid: (1) causing personal injury to the other party; (2) Intentionally or grossly negligently causing damage to the other party's property.

Article 54 One of the following contracts shall have the right to request the people's court or arbitration institution to modify or revoke the following contracts: (1) they are concluded due to major misunderstandings; (2) It is obviously unfair at the time of the conclusion of the contract. If one party uses fraud, coercion or taking advantage of the danger of others to cause the other party to enter into a contract contrary to its true intentions, the injured party has the right to request the people's court or arbitration institution to modify or revoke it.

Where a party requests a modification, the people's court or arbitration institution must not revoke it. Article 55: In any of the following circumstances, the right of revocation shall be extinguished: (1) the party with the right of revocation has not exercised the right of revocation within one year from the date on which it knew or should have known the reasons for revocation; (2) The party with the right of revocation expressly expresses or waives the right of revocation by its own conduct after knowing the reasons for revocation.

Article 56 An invalid contract or a contract that has been revoked shall not be legally binding from the beginning. If part of the contract is invalid and does not affect the validity of the other parts, the other parts shall remain valid.

Article 57 Where a contract is invalid, revoked, or terminated, it does not affect the validity of the clauses on dispute resolution methods that exist independently in the contract.

Article 58 After a contract is invalid or revoked, the property acquired as a result of the contract shall be returned; where it cannot be returned or it is not necessary to do so, compensation shall be made at a discounted price. The party at fault shall compensate the other party for the losses suffered thereby, and if both parties are at fault, they shall each bear corresponding responsibility.

One is valid and one is invalid! That is, one must be realized, and the other is not fulfilled.

Legal analysis: 1. A valid contract has legal effect, while an invalid contract has no legal effect from the beginning; 2. In a valid contract, if the parties have breached the contract, they shall bear the liability for breach of contract, and if the contract is invalid, there is no breach of contract; 3. The conditions for the establishment of a valid contract and an invalid contract are different, and the conditions for the establishment of a valid contract are: the actor has the capacity for civil conduct, the expression of intention is true, and there is no violation of the provisions of the law, and the conditions for the establishment of an invalid contract are:

Violating the mandatory provisions of the law and harming the interests of others.

Legal basis: Article 502 of the Civil Code of the People's Republic of China A contract established in accordance with law shall take effect upon its establishment, unless otherwise provided by law or otherwise agreed by the parties. In accordance with the provisions of laws and administrative regulations, if the contract shall go through formalities such as approval, follow those provisions.

If the failure to go through formalities such as approval affects the effectiveness of the contract, it does not affect the validity of the provisions of the contract on the performance of obligations such as reporting for approval and the validity of the relevant clauses. If a party who should go through formalities such as applying for approval fails to perform its obligations, the other party may request that it bear responsibility for violating such obligations. Where, in accordance with the provisions of laws and administrative regulations, the modification, transfer, or termination of a contract shall go through formalities such as approval, the provisions of the preceding paragraph shall apply.

Legal Analysis: The legal effect of the two is different. An invalid contract is invalid ab initio, and once the contract is confirmed to be invalid, it will have retroactive effect, that is, it will not be legally binding from the time the contract is concluded.

A valid contract is legally binding on the parties to the contract and is protected by law.

Legal basis: Article 146 of the Civil Code of the People's Republic of China: Civil juristic acts carried out by the actor and the counterpart with false expressions of intent are invalid. The effectiveness of civil juristic acts concealed by false expressions of intent is to be handled in accordance with the relevant legal provisions.

The difference between a valid contract and an invalid contract is whether it has legal force or not. A contract that does not have the force of law is not binding ab initio. The contract is valid if the corresponding civil capacity, the expression of intention is true, and it does not violate the mandatory provisions of laws and administrative regulations, and does not violate public order and good customs.

Legal basis] Article 153 of the Civil Code of the People's Republic of China.

Civil juristic acts that violate the mandatory provisions of laws and administrative regulations are invalid. However, the mandatory provisions do not lead to the invalidity of the civil juristic act.

Civil juristic acts that are contrary to public order and good customs are invalid.

Article 154.

Civil juristic acts in which the actor maliciously colludes with the counterpart, harming the lawful rights and interests of others, are invalid.

Article 155.

Civil juristic acts that are invalid or revoked are not legally binding from the beginning.

The difference between the validity and invalidity of a contract is: 1. The contract is established in accordance with the law, and meets the requirements for its effectiveness as stipulated by law, and the contract that can produce the legal effect of the contract in accordance with the law is valid; 2. A contract that violates the law in the process of forming a contract, does not meet the requirements for effectiveness stipulated by law, and cannot produce legal effect in accordance with the law is invalid.

[Legal basis].

Article 143 of the Civil Code provides that a civil juristic act that meets the following conditions is valid: (1) the actor has the corresponding capacity for civil conduct; (2) The expression of intent is true; (3) Do not violate the mandatory provisions of laws and administrative regulations, and do not violate public order and good customs. Article 155:Civil juristic acts that are invalid or revoked are not legally binding from the beginning.

What is the understanding of valid contracts and invalid contracts:

1. A valid contract refers to a contract that has the requirements of the contract and can produce the expected legal effect of the parties to the contract.

2. An invalid contract refers to a contract that has been established, but because it seriously lacks the elements of validity, it is not legally effective according to the agreement between the parties.