According to Article 32 of the Contract Law; "If the parties conclude a contract in the form of a contract, the contract shall be established when both parties sign or seal it."

Generally speaking, a contract is valid only if it meets the effective conditions stipulated by law, otherwise it will be invalid and may be sanctioned by law.

The effective elements of a contract are the evaluation criteria for the parties' agreement by law, so they should be distinguished from the establishment elements of a contract. According to Article 55 of the General Principles of Civil Law, the effective elements of a contract should include: the actor has corresponding capacity for civil conduct; Meaning is truth; Do not violate the law or public interests.

Some special contracts may have some special effective elements, such as contracts for foreign cooperation in oil exploration, which need the approval of relevant state departments before they can take effect.

Extended data:

Legal characteristics of contract

A contract is a legal act of both parties. That is, two or more parties need to express their will to each other (meaning expression is an act of expressing their will that can produce civil legal effect).

(2) Both parties should reach an agreement on the expression of will, that is, the expression of will should be consistent.

(3) This contract aims at the occurrence, alteration and termination of civil legal relationship.

(4) A contract is an agreement reached by the parties under the condition of meeting the requirements of legal norms, so it should be a legal act.

Once the contract is concluded, it has legal effect immediately, and there is a relationship of rights and obligations between the two parties; Or change or eliminate the original civil legal relationship. If one or both parties fail to perform their obligations under the contract, they will be liable for breach of contract according to the contract or the law.

An agreement between two or more parties (natural persons or legal persons) on the establishment, alteration and elimination of civil legal relations. This kind of contract is the most common and important basis for generating debts, so it is also called creditor's rights contract.

The economic contract stipulated in People's Republic of China (PRC) Contract Law belongs to the category of creditor's rights contract. A contract sometimes refers to an agreement in which certain rights and obligations arise. Also known as contract. Such as sales contracts, guidance contracts, labor contracts and contracts signed between factories and workshops.

References:

Baidu Encyclopedia-People's Republic of China (PRC) Contract Law