Balancing public interest with transactional security: the validity of contracts tainted with corruption under Chinese law

Liu, Qiao and Ren, Xiang (2015). Balancing public interest with transactional security: the validity of contracts tainted with corruption under Chinese law. In Michael J Bonell and Olaf Meyer (Ed.), The Impact of Corruption on International Commercial Contracts (pp. 77-98) Switzerland: Springer. doi:10.1007/978-3-319-19054-9_3


Author Liu, Qiao
Ren, Xiang
Title of chapter Balancing public interest with transactional security: the validity of contracts tainted with corruption under Chinese law
Title of book The Impact of Corruption on International Commercial Contracts
Place of Publication Switzerland
Publisher Springer
Publication Year 2015
Sub-type Research book chapter (original research)
DOI 10.1007/978-3-319-19054-9_3
Open Access Status Not Open Access
Year available 2015
Series Ius Comparatum - Global Studies in Comparative Law
ISBN 9783319190549
9783319190532
ISSN 2214-6881
Editor Michael J Bonell
Olaf Meyer
Volume number 11
Chapter number 3
Start page 77
End page 98
Total pages 22
Total chapters 19
Language eng
Abstract/Summary One of the civil law consequences of corruption currently prescribed under Chinese law is that a contract may be rendered void by virtue of its connection with corruption. By providing for five such circumstances, art 52 of China’s Contract Law reflects an absolutist approach that nullifies any contract that comes into contact with illegal conduct such as bribery. Unfortunately, invalidating a contract in most of those circumstances carries the cost of potentially harming a bona fide third party. On closer scrutiny, it may even do a disservice to the very purpose it is supposed to serve, such as the protection of state assets. It is thus submitted that, except where the contract itself is used as a vehicle to carry out the bribery, the contract is not void by reason of its connection with the bribery, at least where the parties have reached a genuine agreement.
Q-Index Code B1
Q-Index Status Confirmed Code
Institutional Status UQ

Document type: Book Chapter
Collections: Official 2016 Collection
TC Beirne School of Law Publications
 
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Created: Wed, 11 Nov 2015, 01:01:05 EST by Carmen Buttery on behalf of T.C. Beirne School of Law