On The Establishment Of The Contract, Effective And Ineffective

On condition that the contract law is the judging rule, and starting with the definition of contract, the author of this paper thinks that the essence of contract is meeting of minds. The establishment of a contract is a matter of factual judgment, with the judging criterion of "meeting of minds". The contract's binding effects mean that the contract has binding force over the contractual parties. Contract's effect is a matter of legal judgment, with many results, for example: yes or no. Generally speaking, when a contract is established, the binding effects happen at once. If a contract is based on agreed premises or periods, only after valid premises achieved or valid periods past, its substantial binding effect can happen. At this time, the contract goes into the phase of performance. After a contract goes into effect, if a party does not perform the obligation, the other party is entitled to relief because of breach to protect his expectations. Why can the injured party do so? The reason is that a contract is valid since its establishment. According to the new contract law, the effective conditions have two kinds: common effective conditions and special effective conditions. In the paper, author still studies the contract law's clause 8 and clause 9. In the requirements of entry into force of contract, we should distinguish the registration to meet the requirements of entry into force of contract and the registration to meet the requirements of the rights' transfer in carrying contracts. As far as the validity of contract is concerned, it means that the contract established under the law(entry into force) should have the force of law over those who are the members of the parties. There are different types of validity basis on the degree of which the established contracts have fulfilled the requirements of entry into force of contract. According to the different results when the assessment by the law when contracts form, this paper divides the present effects of contract into four groups: valid contracts, invalid contracts, indefinite contracts and changeable or cancelable contracts, and analyzes the differences of contracts in different level of effect.After an analysis of concept,requirement and validity of "the establishment" and "entry into force" of contract, this paper concludes that the establishment of contract and entry into force of contract are relative and different. The former is the result of the parties' consistence. So, it is determined in the case of fact. The latter is the law's appraisal of the established contract. So, it is defined by the law. The contract can be enacted after the establishment of contract. It reflects the spirit of modern contract law which contains the principle of freedom of contract and the intervene of the public law to the contract. Moreover, according to analyzing the different phases of the establishment and entry into force and validity of contract and discussing the current view and practice at home and aboard in legal circle, finally, the paper suggests standardizing the responsibilities of litigants. The liability before the establishment of contract or after the invalid of contract is the "Culpa in contrahendo"; The liability during the time after the establishment of contract and before the entry into force of contract can also be considered as "Culpa in contrahendo". But after the enact of contract, the liability could be either the liability of break of contract or the "Culpa in contrahendo". Even more, there is also a possibility that both of them are existence.The basic principles of the contracts are the modes observed by the parties taking part in the dealing, and every system and rule of the contract is from the basic principles. The spirit of my paper also follow the basic principles of the contracts, such as equality and volunteer principle, fair and trust principle, promote the dealing principle, and public order and good customs principle. The contract which had been formed can be taken into effect only when it satisfies the conditions in law. Many valid and defect contract s are considered invalid before the enforcement of the new contract law. The paper studies the concept of the conditions of the effect after the enforcement of the new contract law. The new contract law pays much attention to not only protecting economic order, but also encouraging dealings, and promote the construction of socialism.Apart from the above contents, the author analyzes defects in the laws governing the contracts, and puts forward some proposals for amending these defects.