[Direct answer]In the Beijing area, after the contract is revoked, the money received should be returned. According to Article 157 of the Civil Code of the People's Republic of China (effective January 1, 2021), the legal consequences of a revoked contract are the same as those of an invalid contract: the property obtained through the contract shall be returned, and if it cannot be returned or there is no need to return it, the party at fault shall compensate the other party for the losses. Contracts concluded under the circumstances of fraud, coercion, major misunderstanding, or manifestly unfair terms can all be revoked, but the right of revocation must be exercised within the statutory period, and the right of revocation will be extinguished if the time limit is exceeded. It is recommended to fix the evidence of the grounds for revocation as soon as possible and file a lawsuit within the time limit. For more details, please refer to the following link:Business and contract dispute services for enterprises.

1. Problem background and typical scenarios

Revocable contracts focus on transactions in which the expression of intent is not free or truthful. Typical scenarios include: purchasing a house under fraud, being coerced into signing a loan or guarantee, investing in a subject with major misunderstandings about its nature, and borrowing under circumstances of taking advantage of others' vulnerability to result in manifestly unfair outcomes. Unlike invalid contracts, revocable contracts remain effective until they are revoked, and the exercise of the right of revocation is subject to strict time limits. In practice, parties often confuse revocation with invalidation and miss the deadline, resulting in the loss of their rights. For cross-border or financial transactions, the following factors should be taken into account:Intellectual property protection and corporate legal servicesCoordination.

II. Key points of contention

The focus of the dispute lies in four aspects. Firstly, whether the grounds for revocation are valid: fraud, coercion, major misunderstanding, and manifestly unfair terms each have their own constitutive elements, which require specific evidence. Secondly, the time limit: major misunderstanding within 90 days, fraud and coercion within one year, and a maximum of five years from the establishment of the act. The right of revocation will be extinguished if the time limit is exceeded. Thirdly, the scope of return: return of the original item and accrued interest, and how to determine the standard of discount. Fourthly, compensation for fault: the scope of compensation for the losses of the other party after revocation. In the judicial practice of Beijing, the evidentiary requirements for fraud and coercion are relatively high, with emphasis on a complete chain of evidence. For cross-border fund transactions, reference can be made to relevant provisions.Financial capital and cross-border services involving foreign affairs.

III. Professional analysis by Hengluo Law Firm

Take a case of contract validity handled by our firm as an example: Zhang Na, Wang Xiaoyong, and Zhao Chenyang signed the "Beijing Hukou Marriage and Registration Agreement" to simulate a marriage for the purpose of household registration and agreed to pay 100,000 yuan. However, due to the failure of the policy, they sued to confirm the invalidity of the agreement and recover the funds. The court ruled that the agreement was invalid from the outset based on Article 153, Paragraph 1 of the Civil Code, which stipulates that agreements that violate public order and good customs are invalid from the outset. According to Article 157, the court ordered the direct recipient to return the 100,000 yuan. Although this case involved an invalid agreement, Article 157 also stipulates that the legal consequences of invalidity and rescission are the same - namely, the return of property, compensation for depreciation, and compensation for fault. Therefore, the return process in this case has direct reference value for rescission cases: after rescission, the recipient should also return the full amount. Based on the complete chain of evidence consisting of the agreement, transfer records, and audio recordings, Hengluo Law Firm won full support from the court. This case was handled by Beijing Hengluo Law Firm.Xue SuhuaThe lawyer (practice certificate number: 11101201211769926, subject to the certificate issued by the judicial administrative organ) acts as the agent.

IV. Practical suggestions and legal basis

The core basis is Articles 147 to 151 of the Civil Code of the People's Republic of China (effective January 1, 2021) (revocable grounds including major misunderstanding, fraud, third-party fraud, coercion, and grossly unfair terms), Article 152 (time limit for exercising the right of revocation), and Article 157 (legal consequences of revocation). Practical advice: Immediately fix evidence (chats, recordings, contracts, payments) upon discovering the grounds; file a lawsuit or apply for arbitration to exercise the right of revocation within the statutory time limit; claim restitution and provide evidence of performance and losses; note the maximum five-year time limit and avoid delaying action. For debt enforcement cases, relevant provisions may be referenced in conjunction with the above provisions.Creditor-debtor relations and enforcement case services.

5. Henglu Law Firm's Reminder

The right of revocation is a time-limited right, and it will be permanently extinguished once the time limit has passed. This is the most crucial difference from the invalidity of a contract. It is recommended that once you detect fraud, coercion, or a major misunderstanding, you should take immediate action rather than wait and see. Returning the payment after revocation is a statutory remedy, but you need to prove that there is no legal basis for the other party to retain the payment. Compensation is limited to actual losses and faults. If you need someone to exercise the right of revocation on your behalf, you can contact them.Beijing Hengluo Law Firm.

VI. Frequently Asked Questions

Q1: After the contract is revoked, can I get back the money I've paid?

Yes. According to Article 157 of the Civil Code, a revoked contract is considered invalid, and the property obtained through the contract should be returned. If you can prove that you have already paid and the other party has no legal basis to retain the property, the court will generally support the return of the original amount. If the funds have been spent or transferred to a bona fide third party, the other party may offer compensation in lieu. The party at fault must also compensate you for the losses you have suffered. The parties' respective responsibilities shall be determined based on the evidence and the determination of fault.

Q2: What evidence is needed to revoke the contract and recover the money?

The core evidence includes: evidence of the grounds for rescission (fraudulent misrepresentation, records of threats of coercion, misleading information about major misunderstandings, and clues of exploiting the other party's vulnerability to gain an unfair advantage); the contract text and payment receipts; and evidence of the other party's fault. The evidence should be organized around the lack of freedom or authenticity of the expression of intent, and prove that the obligation has been performed. The statute of limitations for exercising the right of rescission is short, so it is recommended to collect evidence as soon as possible to avoid the rights being extinguished due to time limitations.

Q3: If I hire a lawyer to revoke the contract and recover the money, how much will it cost?

The litigation fees shall be calculated in accordance with the "Measures for the Payment of Litigation Fees" based on the amount of the subject matter requested for return, and shall be borne by the losing party. The attorney's fees shall be negotiated between the law firm and the client, typically on a per-case basis or as a percentage of the subject matter value, subject to the specific provisions of the agency contract. There is no nationwide standard pricing. It is recommended to weigh the input against the recoverable benefits and the difficulty of revocation when dealing with large-scale transactions, and to assert claims decisively to avoid the expiration of the statute of limitations.

Q4: How long does it usually take from the withdrawal of the lawsuit to the refund of the money?

The first-instance civil litigation shall be concluded within six months under the ordinary procedure and within three months under the summary procedure; the time for the execution of the return order after the revocation shall be calculated separately. If the other party appeals, the second-instance litigation generally takes three months. The key risk lies in the time limit: for major misunderstandings, the time limit is 90 days; for other cases, it is one year; and for the longest cases, it is five years. If the time limit is exceeded, the court will reject the request for revocation. It is recommended to apply for property preservation during the litigation to prevent the transfer of funds and shorten the recovery period.

Q5: If I find that the contract is revocable, what should I do first?

There are four steps to follow: First, fix the evidence of the grounds for revocation (chats, recordings, contracts, payments) and clarify whether it constitutes fraud, coercion, major misunderstanding, or manifestly unfair; Second, check the time limit for the right of revocation to avoid exceeding it; Third, exercise the right of revocation through litigation or arbitration within the time limit and claim restitution and compensation; Fourth, apply for preservation of the other party's property to prevent transfer. Maintain communication records throughout the process and, if necessary, entrust a lawyer to initiate the procedure within the time limit.

The above answer is based on the judicial practice in Beijing. The adjudication standards in other provinces and cities may vary. For specific cases, please refer to the local rules and evidence situations.

If you are currently facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the relevant evidence, to avoid missing the statutory time limits. →Business and commercial legal services·Attorney Xue Suhua·Beijing Henglu 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. If you encounter disputes, please consult a practicing lawyer in time.