Contract law of the people's Republic of China
Article 52 A contract is invalid under any of the following circumstances:
(1) One party enters into a contract by means of fraud or coercion, which harms the interests of the state;
(2) Malicious collusion that harms the interests of the state, the collective or a third party;
(3) Covering up illegal purposes in a legal form;
(4) damaging the public interest;
(5) Violating the mandatory provisions of laws and administrative regulations.
Article 58 After a contract is invalid or cancelled, the property acquired as a result of the contract shall be returned; If it is impossible or unnecessary to return it, it shall be compensated at a discount. The party at fault shall compensate the other party for the losses suffered as a result. If both parties are at fault, they shall bear their respective responsibilities.
Article 59 If the parties collude maliciously and harm the interests of the state, the collective or a third party, the property obtained shall be turned over to the state or returned to the collective or the third party.