The Independent Value and Regulatory Interpretation of the Article of Malicious Collusion in the Civil Code
Malicious collusion is not a phenomenon against the rule of public order and good faith.In system positioning,Article 154 of China's Civil Code belongs to an independent system of invalid contracts.In ap-plication scope,it holds independent institutional value,as it can regulate malicious collusion in cases such as the transfer of investment rights like equity,multiple sales of non-commercial housing and chattels,and debt-ors'frauds harming the interests of guarantors.The subjective components of malicious collusion focus on the judgment of"collusive malice",i.e.,the parties involved have both the"perception"that their conducts are likely to cause harm and the"intent"that they actively pursue or allow harmful consequences to occur.The term"other persons"in"the lawful rights and interests of other persons"mentioned in this article refers exclusively to a specific third party.The objective constitution of malicious collusion is centered on"the property interests of a specific third party",with"causing actual damage"as an essential condition.Given the principle of proportionality,the"invalidity"stipulated in this article shall be understood as a legal effect of relative invalidity,which can only be claimed by the injured party and is only applicable to the particular third party to be protected.
malicious collusionlegal actArticle 154 of China's Civil Coderelative invalidity
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