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ValidityofContractCategoriesofEffectivenessIllegalityMentalReservationMaliciousCollusionEffectivenessofContract(juristicact)CategoryofeffectContractFormed–valid–avoidable–Uncertain(indefinite)–voidContractNotformed：invalidValidIndefiniteAvoidableVoidContractnotformedContractFormedEndoftheperiodfortherighttoavoidRevokeRetroactiveeffectofbeingvoidvalidvoidvalidvalidvoidvoidRefusetoacknowledgeacknowledgeRetroactiveeffectofbeingvalidvalidNocontractatall(invalidorvoid)validvoidvoidIndefiniteAvoidableEffectiveelementsofJuristicAct–GeneraleffectiveelementThepartyshallhavecapacitytomakeajuristicact﹝RCC75-85、981﹞Subjectmattershallbelegalandshallnotviolatemandatorylaws(71),publicpolicy(72),andjustice(74)Declarationofintentionshallbecompleteandnoanydefect(86-93)–SpecialeffectiveelementRegistration(758)SubjectMatterofContract1.Thesubjectmattershallbelegal.A.Shallnotviolatedthemandatorylaws(71)2.Thesubjectmattershallbepropera.Shallnotviolatepublicpolicyandgoodmoral(72)b.Shallnotbeunconscionable(74,274-1)3.Thesubjectmattershallbepossible(246,247)4.Thesubjectmattershallbecertain.JuristicactandthestatelawAutonomousinprivatelife:anindividualcancreateorformaprivatelegalrelationshipunderhis/herwillingness.Juristicactunderprivateautonomy:–Makingdecisionbyhis/herselfandtakingresponsibilitybyhis/herown.–Thestateprotectsandpreservestheaccomplishmentofprivateautonomy.–Thepartiescanexcludelawsifthelawexistsasainstrumentofsupplementorinterpretationtoprivateintention.–Inordertomaintainsocialorder,ethics,andjustice,thestatemayintrudeprivaterelationshipbysettingoutamandatorylaws.ThecategoryoflawsbyitsfunctionDiscretionaryrule–Supplementalrule﹝320、346、369﹞–Interpretationrule﹝4、370﹞Mandatoryrule–Imperativerule﹝27I、47、760、972、1049﹞–Prohibitiverule﹝16、17、222、757﹞Article7ofPRCContractLawInconcludingorperformingacontract,thepartiesshallcomplywithlawsandadministrativeregulationsandobservesocialmorals,andshallnotdisturbthesocialandeconomicorderorharmthepublicinterests.Article6and70fPRCGPCLArticle6–Civilactivitiesshallbeincompliancewiththelaws;wheretherearenorelevantprovisionsinthelaw,theyshallbeincompliancewithstatepolicies.Article7–civilactivitiesshallobservethesocialethicsandshallnotharmthepublicinterestandunderminethestateeconomicplansordisturbthesocialeconomicorder.Article52ofPRCContractLawAcontractisvoidinanyofthefollowingcircumstances:–(i)Onepartyinducedconclusionofthecontractthroughfraudorduress,therebyharmingtheinterestsofthestate;–(ii)Thepartiescolludedinbadfaith,therebyharmingtheinterestsofthestate,thecollectiveoranythirdparty;–(iii)Thepartiesintendedtoconcealanillegalpurposeundertheguiseofalegitimatetransaction;–(iv)Thecontractharmspublicinterests;–(v)Thecontractviolatesamandatoryprovisionofanylaworadministrativeregulation.ROCCivilCodeArticle71Ajuridicalactwhichviolatesanimperativeorprohibitiveprovisionoftheactisvoidexceptvoidanceisnotimpliedintheprovision.Article72Ajuridicalactwhichisagainstpublicpolicyormoralsisvoid.Article73Ajuridicalactwhichdoesnotfollowtheformalityrequiredbytheactisvoidunlessotherwiseprovidedbytheact.Article74Ifajuridicalactwherebyapersonprofitingbythedifficulties,recklessnessorinexperienceofanothercausestobedeliveredorpromisedpecuniarypaymenttosuchanextentthatunderthatcircumstances,thetransactionisobviouslyunfair,thecourtmayrevokethejuridicalactorreducethepaymentupontheapplicationofanyinterestedperson.Theapplicationmentionedintheprecedingparagraphmustbemadewithinoneyearfromthedateofthejuridicalact.TheEffectofIllegalContractPrinciplerule:Void–Voidinpartortotally–ObligatoryactvoidordispositiveactvoidExceptionrule:：–Ajuridicalactwhichviolatesanimperativeorprohibitiveprovisionoftheactisvoidexceptvoidanceisnotimpliedintheprovision.Contractshallnotviolatethepublicpolicyandgoodmoral–Therule:：ROCCivilCode§72–FunctionandlegislativereasonsThejuristicactviolatedpublicpolicyorgoodmoralwillvitiatethenationalmoralande6thics:thereforeitshallbevoid.(thegistofthelegislativereason)Judgemaysupplementthelawonaccountoftheneedofsocietyandeconomysothatthelawcanprogresswiththedevelopmentofsociety.Settingupainstitutetounifyandorganizethelegalnormssoastokeepthelawsinthesamestandards.–Blanketstipulation:thejudgeshallspecifytheextentoftherulebasedonspecificcase.–Standardofjudgment:thefactsonaspecificcase(themotiveorpurposeofthejuristicact),legalnorms,socialvalue,customary,justice.JapanCivilCodeArticle90–Ajuristicactwhoseobjectiscontrarytothepublicorderorgoodmoralsisnullandvoid.Article91–Ifthepartiestoajuristicacthavedeclaredanintentionswhichdeviatesfromanyprovisionofalaworordinancenotconcernedwiththepublicorder,suchintentionshallprevail.MeaningofpublicpolicyandgoodmoralPublicpolicy–Definedasthecommoninterestofanationorsociety.–“Public”isauncertainlegalconcept.Itdoesn’tmeanawillthatcomesfrommostpeopleoverhalfbutagroupconceptrepresentedorrecognizedbyanationorsociety.–“publicpolicy”isaconceptoflegalnormwhichincludesconstitutionandlaws.GoodMoral–Definedasaconceptofcommonethicsinasociety.–“good”isauncertainlegalconceptandisusedasastandardfors