Legal basis: Article 503 of the General Principles of Civil Law of People's Republic of China (PRC) does not authorize the agent to conclude the contract in the name of the principal, and if the principal has started to perform the contractual obligations or accepted the performance of the counterpart, it is regarded as ratification of the contract.
Article 504 of the General Principles of the Civil Law of People's Republic of China (PRC) * * * A contract concluded by the legal representative of a legal person or the person in charge of an unincorporated organization is valid unless the other party knows or should know that it is beyond its authority, and the contract concluded is valid for the legal person or unincorporated organization.
Article 505 of the General Principles of the Civil Law of People's Republic of China (PRC) * * * The validity of a contract concluded by the parties beyond the business scope shall be determined in accordance with the relevant provisions of Section 3 of Chapter 6 of Part I of this Law and this Ministry, and the contract shall not be deemed invalid just because it exceeds the business scope.