Article 54
A civil juristic act shall be the lawful act of a citizen or legal
person to establish, change or terminate civil rights and obligations.
Article 55
A civil juristic act shall meet the following requirements:
(1) the actor has relevant capacity for civil conduct;
(2) the intention expressed is genuine; and
(3) the act does not violate the law or the public interest.
Article 56
A civil juristic act may be in written, oral or other form. If the
law stipulates that a particular form be adopted, such stipulation
shall be observed.
Article 57
A civil juristic act shall be legally binding once it is instituted.
The actor shall not alter or rescind his act except in accordance
with the law or with the other party's consent.
Article 58
Civil acts in the following categories shall be null and void:
(1) those performed by a person without capacity for civil
conduct;
(2) those that according to law may not be independently
performed by a person with limited capacity for civil conduct;
(3) those performed by a person against his true intentions as a
result of cheating, coercion or exploitation of his unfavourable
position by the other party;
(4) those that performed through malicious collusion are
detrimental to the interest of the state, a collective or a third
party;
(5) those that violate the law or the public interest;
(6) economic contracts that violate the state's mandatory plans;
and
(7) those that performed under the guise of legitimate acts
conceal illegitimate purposes.
Civil acts that are null and void shall not be legally binding from the
very beginning.
Article 59
A party shall have the right to request a people's court or an
arbitration agency to alter or rescind the following civil acts:
(1) those performed by an actor who seriously misunderstood the
contents of the acts;
(2) those that are obviously unfair.
Rescinded civil acts shall be null and void from the very beginning.
Article 60
If part of a civil act is null and void, it shall not affect the
validity of other parts.
Article 61
After a civil act has been determined to be null and void or has been
rescinded, the party who acquired property as a result of the act
shall return it to the party who suffered a loss. The erring party
shall compensate the other party for the losses it suffered as a
result of the act; if both sides are in error, they shall each bear
their proper share of the responsibility.
If the two sides have conspired maliciously and performed a civil
act that is detrimental to the interests of the state, a collective
or a third party, the property that they thus obtained shall be
recovered and turned over to the state or the collective, or returned
to the third party.
Article 62
A civil juristic act may have conditions attached to it. Conditional
civil juristic acts shall take effect when the relevant conditions
are met.
Article 63
Citizens and legal persons may perform civil juristic acts through
agents.
An agent shall perform civil juristic acts in the principal's
name within the scope of the power of agency. The principal shall
bear civil liability for the agent's acts of agency.
Civil juristic acts that should be performed by the principal
himself, pursuant to legal provisions or the agreement between
the two parties. shall not be entrusted to an agent.
Article 64
Agency shall include entrusted agency, statutory agency and appointed
agency.
An entrusted agent shall exercise the power of agency as entrusted
by the principal; a statutory agent shall exercise the power of
agency as prescribed by law; and an appointed agent shall exercise
the power of agency as designated by a people's court or the
appointing unit.
Article 65
A civil juristic act may be entrusted to an agent in writing or
orally. If legal provisions require the entrustment to be written,
it shall be effected in writing.
Where the entrustment of agency is in writing, the power of attorney
shall clearly state the agent's name, the entrusted tasks and the
scope and duration of the power of agency, and it shall be signed or
sealed by the principal.
If the power of attorney is not clear as to the authority conferred,
the principal shall bear civil liability towards the third party,
and the agent shall be held jointly liable.
Article 66
The principal shall bear civil liability for an act performed by an
actor with no power of agency, beyond the scope of his power of
agency or after his power of agency has expired, only if he recognizes
the act retroactively. If the act is not so recognized, the performer
shall bear civil liability for it. If a principal is aware that a
civil act is being executed in his name but fails to repudiate it,
his consent shall be deemed to have been given.
An agent shall bear civil liability if he fails to perform his duties
and thus causes damage to the principal.
If an agent and a third party in collusion harm the principal's
interests, the agent and the third party shall be held jointly liable.
If a third party is aware that an actor has no power of agency,
is overstepping his power of agency, or his power of agency has
expired and yet joins him in a civil act and thus brings damage
to other people, the third party and the actor shall be held
jointly liable.
Article 67
If an agent is aware that the matters entrusted are illegal but
still carries them out, or if a principal is aware that his agent's
acts are illegal but fails to object to them, the principal and the
agent shall be held jointly liable.
Article 68
If in the principal's interests an entrusted agent needs to transfer
the agency to another person, he shall first obtain the principal's
consent. If the principal's consent is not obtained in advance, the
matter shall be reported to him promptly after the transfer, and if
the principal objects, the agent shall bear civil liability for the
acts of the transferee; however, an entrusted agency transferred in
emergency circumstances in order to safeguard the principal's interests
shall be excepted.
Article 69
An entrusted agency shall end under any of the following circumstances:
(1) when the period of agency expires or when the tasks entrusted
are completed;
(2) when the principal rescinds the entrustment or the agent
declines the entrustment;
(3) when the agent dies;
(4) when the principal loses his capacity for civil conduct; or
(5) when the principal or the agent ceases to be a legal person.
Article 70
A statutory or appointed agency shall end under any of the following
circumstances:
(1) when the principal gains or recovers capacity for civil
conduct;
(2) when the principal or the agent dies;
(3) when the agent loses capacity for civil conduct;
(4) when the people's court or the unit that appointed the agent
rescinds the appointment; or
(5) when the guardian relationship between the principal and the
agent ends for other reasons.
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