[Direct answer]Contracts signed with false intentions are generally invalid. According to Article 146 of the Civil Code of the People's Republic of China (effective January 1, 2021), civil legal acts performed by the actor and the counterparty with false expressions of intention are invalid; the validity of civil legal acts concealed by false expressions of intention shall be dealt with in accordance with relevant laws. If the false arrangement also violates the mandatory provisions of laws and administrative regulations or goes against public order and good customs, it shall also be invalid according to Article 153. After the contract is deemed invalid, according to Article 157, the property obtained from the contract shall be returned, and the party at fault shall also compensate for the other party's losses. Whether it constitutes a false expression of intention needs to be determined based on the evidence. For disputes over the validity of the contract, reference can be made to the relevant provisions.Business and contract disputes in enterprises.

1. Problem background and typical scenarios

In practice, false contracting takes various forms: first, fake marriage or divorce agreements signed to evade purchase restrictions, household registration, or school enrollment policies; second, dual contracts disguised as sales but actually serving as loan guarantees; third, low-price transfers or asset holding on behalf of others to avoid taxes or debts; fourth, false purchase and sales contracts signed for bookkeeping purposes; fifth, agreements signed at the request of relatives or friends but not actually performed. In such arrangements, both parties tacitly agreed to the terms at the time. However, once interests change, one party often claims that the contract is invalid, while the other party defends it with written evidence, leading to disputes.

II. Key points of contention

The controversy focuses on five aspects. First, whether there is a genuine transaction intention needs to be judged comprehensively based on the contractual background, performance behavior, and capital flow. It is difficult to determine this solely based on verbal claims. Second, the distinction between disguised and hidden behaviors. Disguised behaviors are invalid, while the validity of hidden behaviors is evaluated separately based on their own nature and legal provisions. Third, whether mandatory regulations or public order and good customs are violated simultaneously. Arrangements to evade household registration and purchase restrictions are often deemed invalid. Fourth, the scope of restitution after invalidation, including the interest on the occupied funds and the contractual fees. Fifth, the fault and loss sharing between the two parties. Specifically, the current effective laws and regulations and judicial rulings shall prevail, and those involving marriage and family arrangements can be referred to for reference.Marriage and family matters, and divorce litigationColumn.

III. Professional analysis by Henglue Law Firm

Take a contract invalidation dispute handled by our firm as an example. Zhang Na and Wang Xiaoyong were originally married, but decided to fake a marriage to obtain a Beijing household registration for their child. On February 4, 2023, Zhang Na signed a "Consulting Brokerage Service Contract" with a legal consulting company and paid 150,000 yuan in service fees; on March 17, the couple divorced; and on March 21, Zhang Na signed a "Beijing Household Registration Marriage Agreement" with a third party, Zhao *. The agreement stipulated that the marriage was solely for the purpose of obtaining a household registration and did not involve any actual marital relationship. On the same day, Wang Xiaoyong paid 100,000 yuan to Zhao *. However, due to policy restrictions, the household registration failed, so the couple entrusted the Xue Suhua Lawyer Team to sue, seeking to confirm the invalidity of the agreement and recover the funds. The lawyer collected the agreement text, transfer records, divorce certificates, and phone recordings to establish the fact that the other party admitted receiving the money and sharing the profits with the intermediary, forming a closed-loop of written evidence. The court ruled that the agreement violated public order and good customs by using a fake marriage to evade household registration policies, and was invalid from the outset according to Article 152 of the Civil Code. The court ordered Zhao *, who was the direct recipient of the funds, to return 100,000 yuan within a specified period and bear the case acceptance fees and announcement fees. This case was handled by Beijing Henglue Law Firm.Xue SuhuaThe attorney (practice certificate number: 11101201211769926, subject to the certificate issued by the judicial administrative organ) acts as the agent.

IV. Practical suggestions and legal basis

Action recommendations: First, preserve evidence that can prove the fraudulent agreement, such as agreements stating that they are merely formalities, chat records, audio recordings, and intermediary testimonies. Second, verify the actual flow of funds and identify the recipient to facilitate claims for restitution. Third, when suing, simultaneously assert the invalidity of the contract and claim restitution of the property. Fourth, be aware that the other party may defend with hidden true legal relationships and evaluate the validity of such concealment in advance. Fifth, be vigilant against administrative and criminal risks. Forgery of household registration and fraudulent acquisition of purchase qualifications may result in additional penalties. Legal basis: Article 146 of the Civil Code of the People's Republic of China stipulates that civil legal acts implemented with false expressions of intent are invalid. Article 153, Article 157 stipulate that civil legal acts that violate mandatory provisions or public order and good customs are invalid. Article 157 also stipulates that property obtained after the act's invalidation shall be returned, and the party at fault shall compensate the other party for losses.

5. Henglu Law Firm's Reminder

Risk Warning: Firstly, a contract signed under false pretenses is not a safety net that "signing it is as good as not signing it". The consequences may include invalidity, return of funds, or even administrative penalties. Please do not attempt to evade policies in this way. Secondly, evidence is crucial. Statements such as "just going through the motions" in chat records must be preserved in their original form. Thirdly, it is advisable to claim for the return of funds without delay to avoid the other party transferring funds and making enforcement impossible. Fourthly, if you are the recipient of the funds, actively negotiating the return of funds is the best way to mitigate losses. When involved in disputes over the validity of the contract, it is recommended to consult legal experts about the evidence of the case as soon as possible.Beijing Henglue Law FirmIt's a similar column on the official website.

VI. Frequently Asked Questions

Q1: Can you win a lawsuit if you sign a contract with fraudulent intent?

There are precedents of successful litigation, but it depends on the evidence. Contracts signed with false expressions of intent are invalid according to Article 146 of the Civil Code, and those that violate public order and good customs are also invalid according to Article 153. In the disputes over fake marriage registration agreements handled by our firm, the court ruled that the agreements were invalid and ordered the direct recipients to return 100,000 yuan. The key to winning or losing the case lies in whether it can be proven that the two parties did not have a genuine intention to engage in transactions, such as written agreements, chat records, and fund flows, etc. It is recommended to first evaluate the evidence before filing a lawsuit.

Q2: What evidence is needed to prove that the contract was signed in bad faith?

Common examples include: agreement clauses or chat records stating that the transaction is just a formality and not a real one; audio and video recordings; intermediary testimonies; evidence of fund flows, such as records of short-term repatriation or transfer to third parties after payment; proof that the parties have never actually performed the contract, such as no delivery or no cohabitation. When multiple pieces of evidence corroborate each other to form a closed loop, the court is more likely to determine that the expression of intention is false.

Q3: How much does it cost to litigate such cases?

The litigation fees are paid in stages according to the amount of the litigation request. In cases where the contract is confirmed to be invalid and the claim for the return of 100,000 yuan is made, the litigation costs are relatively manageable. The attorney's fees are negotiated based on the complexity of the case, and there is no uniform standard. If the defendant's whereabouts are unknown and need to be served by public announcement, additional announcement fees will be incurred, which are generally borne by the losing party or in accordance with the judgment. It is recommended to first consult and evaluate the subject matter and the strength of the evidence before determining the budget and strategy.

Q4: How long does it take to confirm that the contract is invalid?

The ordinary procedure of the first instance generally takes no more than six months, and the summary procedure takes three months; if the defendant is absent or the service of process is by public announcement, the cycle will be prolonged. The second instance usually takes about three months. For cases with sufficient evidence, it often takes several months from filing the lawsuit to obtaining the judgment of restitution. After that, it depends on the other party's performance to decide whether to apply for compulsory execution. Overall, it is advisable to set aside more than half a year for this process.

Q5: What should I do if I find out that I've signed a fake contract?

The first step is to immediately fix the evidence of the false agreement and the flow of funds, including chat records and transfer receipts; the second step is to send a written reminder to the other party to return the funds and keep the records; the third step is, if no agreement can be reached through negotiation, to file a lawsuit with the court to request the confirmation of the invalidity of the contract and the return of the property and compensation for losses; the fourth step is to apply for compulsory execution in a timely manner if the other party refuses to perform; the fifth step is to evaluate the administrative risks involved in policy evasion at the same time, and relevant reference materials can be consultedBusiness and contract disputes in enterprises.

The above content is based on the judicial practice in the Beijing area. The facts of individual cases and the jurisdiction of the court may affect the conclusions. Welcome to consult Henglu Law Firm for specific cases.

If you are currently facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the necessary evidence to avoid missing the statutory time limits. →Business and commercial legal services·Attorney Xue Suhua·Beijing Henglue Law Firm

Disclaimer: This article is compiled based on the current effective laws and regulations and public adjudication rules, and is for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. In case of disputes, please consult a practicing lawyer in time.