Administrative Approval as a Requirement for Contract Effectiveness under the background of the Civil Code
Article 502 of the Civil Code clearly grants the power of administrative approval as a requirement for contract effectiveness to be established by laws and administrative regulations.Administrative approval,as a necessary condition for the effectiveness of a contract,breaks the general principle of"the contract becomes effective upon its establishment"and serves as the boundary of contract freedom.Administrative approval,as a necessary condition for the effectiveness of contracts,is a kind of administrative act leading to effect of private law,and its legitimacy stems from the priority of public interests,with the aim of preventing excessive autonomy from harming public interests.However,this system design has hidden institutional concerns such as disrupting the internal logic of private law itself,improper overstepping of administrative power,and inducing opportunistic behavior.In this regard,it is necessary to seek the only and optimal option that meets the regulatory objectives,to prohibit the impact of administrative approval on the effectiveness of contracts,and instead use administrative approval to control the performance of contracts.Of course,even the administrative approval authority for controlling contract performance should be strictly limited,and only the law has the power to set it.
Administrative ApprovalContractEffective RequirementsPerformance of the ContractAutonomy
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