[Case Summary]This case involves a dispute over a license plate rental contract. On July 19, 2021, Meng * and Huo * signed the "Lease and Use Agreement for Car License Plate Indicators", under which Meng * paid a one-time rental fee of 50,000 yuan to lease the right to use a Beijing passenger car license plate indicator for 15 years. However, Huo * failed to cooperate in handling the relevant procedures, prompting Meng * to entrust the professional legal team of Beijing Henglu Law Firm to file a lawsuit in court, claiming that the agreement was invalid and demanding the return of the rental fee. The court determined that the agreement disrupted the public order of the car license plate allocation system and violated public interests, ruling it invalid and ordering Huo * to return the 50,000 yuan. The core disputes are the validity of the license plate rental agreement and the return of the rental fee. The applicable legal provisions are the provisions of the Civil Code on the invalidity of contracts and the return of property.

I. Review of the case

Are Beijing license plate leases reliable? Can the money be refunded if the buyer changes their mind about leasing a license plate? Is the lease agreement for license plate quotas valid? These are questions that many car owners who failed to obtain a license plate number are concerned about. On July 19, 2021, Meng * (Party A) and Huo * (Party B) signed the "Lease Use Agreement for Small Car License Plate Quotas", which stipulated that Party B would have the right to use the Beijing small car license plate quota for 15 years, with a one-time payment of 50,000 yuan, and a term from July 19, 2021 to July 18, 2036. The agreement also specified the rights and obligations of both parties and the liability for breach of contract. On July 18, 2021, Meng * transferred 50,000 yuan to Huo *'s bank account. However, Huo * failed to fulfill his obligations under the contract and refused to cooperate with the necessary procedures. To protect his rights and interests, Meng * entrusted Hengluo Law Firm to file a lawsuit against Huo * in court, seeking the return of the 50,000 yuan lease fee.

II. The focus of the case

  • Focus 1: Is the lease agreement for license plate indicators legal and valid?The purpose of the agreement is to allocate quotas for leasing small passenger cars, and to determine whether this will disrupt public order.
  • Focus 2: How will the fees be refunded after the agreement becomes invalid?Should the paid rental fee be fully refunded?
  • Focus 3: Claims for interest on funds occupied.Whether the party claiming interest has committed any fault himself/herself.

III. The professional intervention of Hengluo Law Firm

The plaintiff claimed that:Ho * failed to cooperate in the handling of the procedures, which constituted a breach of contract. The plaintiff requests that the "Lease Agreement for the Use of Car License Plate Indicators" signed by the two parties be declared invalid, and that Ho * be ordered to return the lease fee of 50,000 yuan and the interest on the occupied funds, and to bear the litigation costs.

The defendant argued that:In this case, the defendant, Huo * , was legally summoned but failed to appear in court to respond to the lawsuit and did not submit a defense.

Hengluo Lawyer's Agency Opinion:After accepting the commission, Hengluo Lawyers explained the legal relationship of the case to the parties and pointed out that according to the "Implementation Rules of the Interim Regulations on the Control of the Number of Small Passenger Cars in Beijing" (revised in 2020) issued by the Beijing Municipal Transportation Commission and other 13 departments on December 5, 2020, the purpose of the agreement signed by the two parties was to lease the use of the allocation quotas for small passenger cars in Beijing, which disrupted the public order of the control and management of the allocation quotas for small passenger cars in Beijing. Therefore, the "Lease and Use Agreement for Small Passenger Car License Plate Quotas" is invalid. According to the provisions on the return of property after the invalidation of civil legal acts, Huo * should return the quota lease fee of 50,000 yuan already paid by Meng * to him.

IV. Outcome of the case

The court adopted some of the opinions of Henglue Law Firm and ruled that the contract signed by the plaintiff and the defendant violated the mandatory provisions of laws and administrative regulations and seriously violated the public interest, and should be deemed invalid. Due to the invalidity of the agreement, Huo * should return the 50,000 yuan paid by Meng * for the lease of the license plate, but Meng *'s claim for interest on the use of the funds is not supported (Meng * also has fault in this regard). In accordance with the provisions of the Civil Code and other laws, the court rendered a default judgment as follows: 1. Confirm that the "Lease Use Agreement for Car License Plate Indicators" signed by Meng * and Huo * on July 19, 2021 is invalid; 2. Huo * shall return the leasing fee of 50,000 yuan to Meng * within ten days from the effective date of the judgment; 3. Reject Meng *'s other claims; 4. The case acceptance fee of 1,104 yuan shall be borne by Meng * (54 yuan) and Huo * (1,050 yuan).

5. Henglu Law Firm's Reminder

This case is handled by the professional lawyer team of Beijing Henglu Law Firm (practice license number: _________, subject to the document issued by the judicial administrative authority). Henglu Law Firm reminds you that the sale and lease of Beijing license plates are illegal activities with high legal risks. For the license plate owner, there are risks such as the other party refusing to cooperate in returning the license plate or the license plate being invalidated; for the license plate lessee, if the nominal owner is involved in enforcement disputes, the vehicle may be seized or subject to enforcement measures.

VI. Common Questions and Answers about License Plate Lease Disputes

  1. Q:Is the agreement for renting a car license plate valid?
    A:Invalid. The use of lease car configuration indicators to disrupt public order and violate public interests is considered invalid according to relevant laws and regulations. Such agreements are usually deemed invalid by the court.
  2. Q:If I change my mind about renting a car license plate, can I get a refund?
    A:After the agreement becomes invalid, the paid rental fees should, in principle, be refunded. However, the claim for interest on the occupied funds may not be supported due to the lessee's own fault.
  3. Q:What are the risks of leasing a Beijing license plate?
    A:The indicator person faces the risk of having their indicators revoked, and the lease plate holder faces the risk of having their vehicle executed and seized by the nominal owner's creditors.
  4. Q:Can license plate indicators be bought and sold?
    A:No. It is prohibited to buy, sell, or lease the small car quotas in Beijing. Quotas obtained through such agreements are not protected by law.
  5. Q:If I sign a rental agreement, can I sue to get my money back?
    A:You can claim that the agreement is invalid and request the return of the payment. Generally, the court will support the return of the principal amount.