The legal basis is the Contract Law of People's Republic of China (PRC).

Article 48 A contract concluded in the principal's name after the actor has no agency right, exceeds the agency right or the agency right is terminated, without ratification by the principal, it will not be effective for the principal, and the actor shall bear the responsibility.

The other party may urge the principal to ratify it within one month. If the trustor fails to declare it, it shall be deemed as refusal to ratify it. Before the contract is ratified, the bona fide counterpart has the right to cancel the contract. Revocation shall be made by notice.