Legal consequences of invalid construction contract of construction project

1、 Relevant laws and judicial interpretations Article 155 of the civil code     An invalid or revoked civil legal act is not legally binding from the beginning《 Article 157 of the civil code     After a civil legal act is invalid, revoked or determined not to be effective, the property obtained by the actor due to the act shall be returned; If it is impossible or unnecessary to return, it shall be compensated at a discount

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   ( 3) If the construction contract of the construction project is invalid, but it has been actually performed and fails to pass the acceptance, and the contractor has repaired and passed the acceptance, the employer shall compensate the contractor at a discount according to the contract on the project price, and the project repair cost shall be borne by the contractor; If the contractor still fails to pass the acceptance after repair, the contractor has no right to request the employer to compensate the project construction expenses

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Qualified acceptance does not require qualified completion acceptance, but refers to the qualified quality of “completed part of the project”

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Once a dispute over the construction contract of a construction project enters the litigation stage, the validity of the contract will be an issue that the court must review in the process of case trial

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If the contract is confirmed to be invalid and one party has evidence that the other party is at fault in the process of concluding the contract, it may request the other party to bear the liability for contracting fault and compensate the loss of the trust interests of the parties

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  Combined with the analysis and summary of the consequences of the invalidation of the construction contract of the construction project in the civil code and the judicial interpretation of 2020 construction project, the previous article combs various situations of the invalidation of the construction contract of the construction project, so what kind of legal consequences will be faced when the construction contract of the construction project is invalid? This paper will make a summary and analysis according to the civil code and the interpretation of the Supreme People’s Court on the application of law in the trial of construction contract disputes (I) (FSH [2020] No

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You are welcome to discuss how to judge whether the construction contract of construction project is valid( 1) How to judge whether the construction contract is valid( 2) Yes.

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The party at fault shall be liable for damages

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25, hereinafter referred to as “2020 judicial interpretation of construction projects”), hoping to learn and discuss with colleagues in the construction field, In order to help enterprises avoid the risks and unnecessary losses caused by the invalidity of the construction contract

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2、 Analysis and summary 1

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The construction process of a construction project is a process in which the contractor materializes labor services and building materials into a construction project

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If both parties are at fault, each party shall bear corresponding liabilities

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The party at fault shall compensate the other party for the losses suffered therefrom; If all parties are at fault, they shall bear corresponding responsibilities

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If the construction contract of the construction project is invalid and the construction project experience is unqualified, it shall be handled according to the following circumstances: (1) if the repaired construction project passes the acceptance, the employer may request the contractor to bear the repair cost( 2) If the experience of the repaired construction project is unqualified, the Contractor shall not have the right to request the discount compensation according to the contract on the project price

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The principle of invalid restitution cannot be applied, and can only be treated by discount compensation

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The above is personal learning experience

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The property obtained by the employer is actually the labor and construction materials invested by the contractor in the project construction

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If the size of the loss cannot be determined, and one party requests to determine the size of the loss with reference to the quality standard, construction period, project price payment time and other contents agreed in the contract, the people’s court may make a judgment in combination with the degree of fault of both parties, the causal relationship between fault and loss and other factors

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   ( 2) The construction contract of the construction project is invalid, but has been actually performed and accepted

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Where there are other provisions of the law, such provisions shall prevail《 Article 507 of the civil code      The non effectiveness, invalidity, cancellation or termination of the contract shall not affect the effectiveness of the provisions of the contract on dispute resolution《 Article 793 of the civil code, the construction contract of a construction project is invalid, but if the construction project passes the acceptance, the contractor may be compensated at a discount according to the contract on the project price

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Once the construction contract of the construction project is confirmed to be invalid, it is invalid from the beginning

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The employer shall compensate the contractor for the discount according to the agreement on the project price in the contract; However, the agreement on rewards and late fees in the contract does not belong to the agreement on project price pricing, nor does it belong to the liquidation clause, and should not be applied by reference

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If the contract is invalid, the party claiming compensation for the loss shall bear the burden of proof

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If the employer is at fault for unqualified quality, it shall bear corresponding civil liability

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The construction contract of the construction project is invalid

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If the contract letting party is at fault for the losses caused by the unqualified construction project, it shall bear corresponding responsibilities《 Article 6 of 2020 judicial interpretation of construction projects     If the construction contract of a construction project is invalid and one party requests the other party to compensate for the losses, it shall bear the burden of proof on the other party’s fault, the size of the loss and the causal relationship between the fault and the loss

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If the construction contract of the construction project is invalid, the contract has no legal binding force from the beginning, so the liability for breach of contract cannot be claimed based on the contract

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According to the time when the contract is invalid, it can be divided into the following situations:    ( 1) The construction contract of the construction project is confirmed to be invalid after it is concluded and before it is actually performed

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The principle of fault liability shall apply to the invalidity of the construction contract of the construction project“ The basis of “discount compensation” is not “compensation for losses”, its purpose is not to condemn the wrong party and redistribute the benefits of contract performance, but to return the benefits formed by contract performance to the original state

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In short, both parties to the construction contract of the construction project should have a clear understanding of the effectiveness of the contract, have sufficient pre judgment on the possible risks, and pay enough attention to the timely and comprehensive preservation of evidence materials related to the signing and performance of the contract, which can not only be used as the basis for requiring the other party to properly perform the contract, In case of invalidity of the contract or other disputes related to the contents of the contract, it can also be used as its own evidence to support its own claims

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