Renmin Chinese Law Review
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Renmin Chinese Law Review

Selected Papers of The Jurist (法学家), Volume 3

Edited by Jichun Shi

Renmin Chinese Law Review, Volume 3 is the third work in a series of annual volumes on contemporary Chinese law, which bring together the work of recognized scholars from China, offering a window on current legal research in China. This book reflects the study of Chinese law and the reality of Chinese legality and society. Chapters address the developments of the Committee of Politics and Law of CPC, the new challenges China faces in anti-terrorism, the emerging P2P lending in China and the legislation of virtual property inheritance.
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Chapter 12: Impact of administrative approval on validity of contract: theory and practice

Wu Guangrong


The rules making administrative approval necessary for the enforcement of contract are not only different from the mandatory rules adopted by Article 52(5) of the Contract Law, but also different from the registration rules adopted by the Property Law. Therefore, a contract without administrative approval cannot be judged invalid on the ground of violating mandatory rules. At the same time, the separation principle in the Property Law cannot always be implied to analyze the impact of administrative approval on the validity of contract. The administrative approval is just the necessary condition for the enforcement of the contract, not the sufficient condition. Therefore, disputes between the parties of a contract should be resolved through civil proceedings instead of administrative procedure. When the party who bears the duty to apply for the administrative approval does not do it in accordance with the law or the contract, the other party can claim liability for breach of contract or the contracting negligence responsibility.

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