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Circumstances invalidating civil and commercial contracts

Updated: Mar 30, 2018 english.legalinfo.gov.cn Print

According to the Chinese laws, a contract is invalid in any of the following circumstances: (1) one party induced conclusion of the contract through fraud or duress, thereby harming the interests of the State; (2) the parties colluded in bad faith, thereby harming the interests of the State, the collective or any third party; (3) the parties intended to conceal an illegal purpose under the guise of a legitimate transaction; (4) the contract harms public interests; and (5) the contract violates a mandatory provision of any law or administrative regulation.

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