Research On The Limitation Of Invalid Contract

There are three worthy research topics between invalid contract and limitation of action:first, whether the statute of limitation can be applied to the confirmation of invalid contract; second, whether right of recovery, which based on the effectiveness of contract, also apply to the statute of limitation, after the contract have been con-firmed invalid; third, If the statute of limitations is applied to the confirmation of in-valid contract, when is the starting point? And what about the limitation of right of recovery? How to respond these questions constitutes the main content of this paper.For the first question, that is whether the statute of limitation can be applied to the confirmation of invalid contract, the code of contract law does not give a positive or negative answer. The results of such disputes are very different in judicial practice and academic. The affirmative academic emphasize on the importance of social order and transaction security; the negative academic attach importance to the authority of the law, who based on the application of existing provisions of the law; the compro-mise view is a combination and balance of these two views. In essence, the question of whether the invalid contract is applicable to the limitation of action, is the most appropriate choice between public interests/transaction security/efficiency, which conflicts with each other.In this paper, the analysis method of value measurement is applied to demon-strate the rationality of affirmative academic, which said that, the application of limi-tation is the result of value measurement in confirmation of invalid contract, it does not lead to the legitimacy of invalid contract, and is in line with the current situation of China’s economy. The right to claim contract invalidity is the right to claim relief right, which is identical with the object of limitation of action in nature.For the second question, after the contract is confirmed to be invalid, the corresponding claims for compensation for damages shall belong to the claim right of claim, which should of course be limited by limitation. As for the right of recovery, the legislation of different countries and the understanding of scholars are inconsistent, which is considered property rights or unjust enrichment. In the view of this paper, the theory of concurrence of claims is consistent with the existing laws of our country, and gives more freedom to right holder, that is, the right of claim and the right of unjust enrichment exist at the same time, obligee can freely choose.There is still controversy about the affirmation, negation and compromise between whether the right of recovery should apply to the limitation of action. These three theories have advantages and disadvantages. The Affirmative view, which regarded the return of property as a civil liability, is not desirable, because the return of property is not an element of liability as a prerequisite; the negative views claim that the right of recovery is the right to claim, which is also not desirable. We will support the second view of compromise, that is, according to the nature of the property involved invalid contract, the property is divided into movable and immovable property.The third problem discussed in this paper is the starting point of the limitation for the invalidation of the contract and the right of recovery. The starting point of the statute of limitations for the invalidation of contract shall be a distinction between the court’s proactive review by contract and the application by the party or third party of contract. If a party of contract claim for the confirmation of invalid contract, it shall start from the expiration of the time agreed upon between the parties to the contract; No agreed limitation, it shall be calculated from the date when a party of the contract is requested to request the other party to perform the obligation.2. The third party interested in the contract shall claim rights from the date when he knows or ought to know that his legitimate rights and interests have been infringed, the maximum period is 20 years. The one who wants to determine the nature of contract can claim at any time in the extent authorized by law. The right of recovery, which resulted by invalid contract, should be calculated from the date of the contract was confirmed invalid.The statute of limitation of action is the products of fairness and justice, social order and economic efficiency. We should distinguish between the different circumstances。 Judges in the case can be directly applied according to specific circumstances, the trial of similar cases can also be directly cited, which can effectively improve the efficiency of litigation, saving the cost of litigation. Finally, compared with other countries and regions in the world, it is concluded that the limitation of common lawsuits in our country is too short. We should fully demonstrate the theory and practice in the formulation of civil code, and on the basis of balancing the interests of all parties, to establish a reasonable period of limitation of action.