Legal basis: Civil Code of People's Republic of China (PRC).
Article 144 A civil juristic act performed by a person without capacity for civil conduct is invalid.
Article 146 A civil juristic act by the actor and the counterpart with false intention is invalid. The validity of a concealed civil juristic act with false intention shall be handled in accordance with relevant laws and regulations.
Article 153 A civil juristic act that violates the mandatory provisions of laws and administrative regulations is invalid. However, unless mandatory provisions do not invalidate civil legal acts. A civil legal act that violates public order and good customs is invalid.
Article 154 A civil legal act in which the actor colludes with the counterpart in bad faith and damages the legitimate rights and interests of others is invalid.
Article 505 The validity of a contract concluded by the parties beyond the scope of business shall be determined in accordance with Section 3 of Chapter VI of Part I of this Law and the relevant provisions of this Chapter, and the contract shall not be deemed invalid because it exceeds the scope of business.