Supreme Court of PRC "to confirm the contract invalid" does not apply to limitation of action the latest bulletin cases

[title] case

Guangxi Beisheng Refco Group Ltd and Beihai Weihao real estate development company, the Guangxi Zhuang Autonomous Region animal by products import and Export Corporation of Beihai land use rights transfer contract dispute case

[] the Supreme People's court, the court of Final Appeal

[size] (2005 cases) and a final word no. 104th

The final date [] 2006.06.02

The important points from []

    On the question of limitation of action. Weihao companies prosecution does not exceed the limitation of action, Hao Wei company litigation request should get the support of the court.

1. the confirmation of the contract does not apply to limitation of action, the period of limitation of action is invalid contract has the right to request the return of property should be from the date of the contract is confirmed invalid.The confirmation of the contract without the limitation of action limitation. Invalid contract is the result of public power represents the law of contract to intervene. To confirm the validity of the contract is the judgment of value category, as long as the laws, administrative rules and regulations that the contract is invalid or damage the public interests, it should be that the contract is null and void, and should not be considered null and void the contract time process. In addition, the limitation of action system applicable to the right to claim, contract is right of formation is confirmed, that the contract invalid action of confirmation, not apply action limitation. Invalid contract is a legal status, the law should not force the parties whenever and wherever possible the validity of contract review, so that the transaction is in an indeterminate state. The good performance of the contract process, does not occur on validity of the contract and claim that invalid date limitation problem in contract property. The period of limitation of action is invalid contract has the right to request the return of property should be from the date of the contract is confirmed invalid. If the "civil relations stability" as an excuse to invalidate the contract after the extension of time to achieve the same results with a valid contract facts, which is obviously contrary to the legislative purpose.

      2Invalid contract. Even the action from the know or should know the date of calculation are infringed rights.

North Health Group will company litigation request have limitation that cannot be established. First of all, Hao Wei company and North Health Group "between land development cooperation agreement" is not the main obligation of contract term. For non performance of contract, in accordance with the relevant provisions of China's general principles of civil law and contract law, litigation prescription starting are as follows:

(1) when the debtor creditor urge that the immediate implementation, not actually performed, limitation of action urged the next day;

(2) if the parties reach a consensus through consultation, determine a clear deadline for performance, the limitation of action from the day following the expiration of the period of the run; if the parties fail to perform the period, put forward on either side of a rational performance after the deadline, the limitation of action in the reasonable time limit is calculated from the;

(3) the creditor to the debtor creditor debtor claim, immediately explicitly rejected, and the refuse containing will not perform the debt mean, then, action from the day after the date of calculation to. In this case, these cases do not exist, so this case does not exist Wellhope company knows or should know that his rights have been infringed the fact, the limitation of action is not known. In fact, it is the parties with the Beihai real estate situation, starting from the maximum safeguard the interests of both sides of contract, agreed in a continual state of facts, and therefore there is no the infringement of the rights.

The validity of the contract between the company and the 3 Waltham North Health Group non court ruling, the parties and any third party has no right to recognize the validity of the contract, the company also can not invoke other Rio's decision, to subjective inference in this case in the contract rights are violated. In fact, a cooperative development contract will company with third people, to the North health group when can get dispute plots of land use right is not clear, the resulting may be on the third default has reasonable predictive, and willing to take the risk, because the North health group even if cannot obtain the land state-owned the right to use land in Hao Wei company and the third party within the agreed period, Hao Wei company cannot most probably it did not actually happen unilateral default presumption North health group. Moreover, in Waltham, and Hengtong company disputes by the the Guangxi Zhuang Autonomous Region intermediate people's Court of Beihai city (1999) No. sixty-sixth North issued Spain in the early Republican word civil judgment after the verdict, North Health Group in the case of a pre-trial, still exist to obtain agreement plots of state-owned land use rights, and in accordance with the contract and then transferred to the Hao Wei company. In fact, between the company and the North Health Group will contract is not absolutely void contract, if the North Health Group to obtain the land dispute in the case during the first trial of the use right of state-owned land, the contract can be deemed valid contract. Hao Wei company failed in another procedure during the first trial has disputed plots of land use right of state-owned land, is not equal to the North health group could not then obtain the use right of state-owned land. According to the Supreme People's Court on the trial of "real estate management law implementation of real estate development business case certain questions" of the spirit, if North Health Group to obtain the disputed plots of land in the case during the first trial of the use right of state-owned land, the cooperative development contract can still be recognized as a valid contract. In fact, the Waltham company rights has not violated, until the prosecution of former, Hao Wei company and Beihai company still expects North Health Group to deliver the land use rights obligations, but North Health Group has been unable to complete the contract, directly leads to the ineffective cooperative development contract.

The opinion of this court, the parties to a contract do not enjoy the legal rights of confirmation of invalid contract, only the arbitration institutions and the people's court shall have the authority to confirm the validity of the contract. The effectiveness of a contract that is the essence of civil action, the intervention of the national public power. Invalid contract is invalid from the beginning, the time after the illegality cannot change the invalid contract. The parties request that the contract was invalid, not be the period of limitation of action limitation, while the contract is confirmed invalid, the parties request about the return of property and compensation for losses, should apply the law provisions concerning limitation of action