Article 51 Unauthorized Disposal of Property through Contract
Where a piece of property belonging to another person was disposed of by a person without the power to do so, such contract is nevertheless valid once the person with the power to its disposal has ratified the contract, or if the person lacking the power to dispose of it when the contract was concluded has subsequently acquired such power.
Article 52 Invalidating Circumstances
A contract is invalid in any of the following circumstances:
(i) One party induced conclusion of the contract through fraud or duress, thereby harming the interests of the state;
(ii) The parties colluded in bad faith, thereby harming the interests of the state, the collective or any third party;
(iii) The parties intended to conceal an illegal purpose under the guise of a legitimate transaction;
(iv) The contract harms public interests;
(v) The contract violates a mandatory provision of any law or administrative regulation.
Article 53 Invalidity of Certain Exculpatory Provisions
The following exculpatory provisions in a contract are invalid:
(i) excluding one party's liability for personal injury caused to the other party;
(ii) excluding one party's liability for property loss caused to the other party by its intentional misconduct or gross negligence.
Article 54 Contract Subject to Amendment or Cancellation
Either of the parties may petition the People's Court or an arbitration institution for amendment or cancellation of a contract if:
(i) the contract was concluded due to a material mistake;
(ii) the contract was grossly unconscionable at the time of its conclusion.
If a party induced the other party to enter into a contract against its true intention by fraud or duress, or by taking advantage of the other party's hardship, the aggrieved party is entitled to petition the People's Court or an arbitration institution for amendment or cancellation of the contract.
Where a party petitions for amendment of the contract, the People's Court or arbitration institution may not cancel the contract instead.
Article 55 Extinguishment of Cancellation Right
A party's cancellation right is extinguished in any of the following circumstances:
(i) It fails to exercise the cancellation right within one year, commencing on the date when the party knew or should have known the cause for the cancellation;
(ii) Upon becoming aware of the cause for cancellation, it waives the cancellation right by express statement or by conduct.