The effectiveness of the equity contract must meet the following conditions: first, the equity contract is the expression of the true meaning of both parties; Second, the contract does not violate the mandatory provisions of laws or administrative regulations, and does not violate public order and good customs; Third, the parties to the equity contract have corresponding civil capacity. If the parties enter into a contract in the form of a contract, the contract shall be established when the parties sign, seal or press their fingerprints. Before signing, sealing or fingerprinting, one party has fulfilled its main obligations, and the contract is established when the other party accepts it. A contract shall be concluded in written form as stipulated by laws, administrative regulations or agreed by the parties. If the parties do not do this in writing, but one party has fulfilled its main obligations and the other party accepts it, the contract is established.

People's Republic of China (PRC) Civil Code

Article 144 A civil juristic act performed by a person without capacity for civil conduct is invalid.

Article 146 A civil juristic act by the actor and the counterpart with false intention is invalid. The validity of a concealed civil juristic act with false intention shall be handled in accordance with relevant laws and regulations.

Article 153 A civil juristic act that violates the mandatory provisions of laws and administrative regulations is invalid. However, unless mandatory provisions do not invalidate civil legal acts. A civil legal act that violates public order and good customs is invalid.

Article 154 A civil legal act in which the actor colludes with the counterpart in bad faith and damages the legitimate rights and interests of others is invalid.

Article 505 The validity of a contract concluded by the parties beyond the scope of business shall be determined in accordance with Section 3 of Chapter VI of Part I of this Law and the relevant provisions of this Chapter, and the contract shall not be deemed invalid because it exceeds the scope of business.