[Direct answer]Yes, but it must meet the statutory conditions. Where a party commits a civil legal act by fraudulent means, causing the other party to perform the act against their true intention, the party who has been defrauded has the right to request the People's Court or arbitration institution to revoke it, in accordance with Article 148 of the Civil Code of the People's Republic of China (effective from January 1, 2021); if a third party commits fraud and the other party knows or should have known about it, it can also be revoked (Article 149). The right of revocation must be exercised within one year from the date on which the party knows or should have known about the grounds for revocation, and if it is not exercised within five years from the date of the civil legal act, the right of revocation shall be extinguished (Article 152). If the claim is not made within the time limit, the contract shall remain in force.

I. Problem background and typical scenarios

Fraudulent contract disputes are common in areas such as investment cooperation, franchising, equipment sales, and technical services. The other party may falsify qualifications, performance, or profits, or conceal major defects to induce you to sign the contract and make payments. Only afterward will you realize that the actual situation is significantly different from what was promised. At this point, you can either claim to rescind the contract and demand the return of the payments already made, or choose to continue to perform the contract and require the other party to bear breach of contract liability. However, the two approaches differ in evidentiary requirements, legal consequences, and exercise deadlines. In practice, the most common problem is that the parties only retain verbal promises and fail to include key content in the contract or chat records, making it difficult to prove "fraud".

II. Key points of dispute

First, the constitution of fraud. It is necessary to prove that the other party intentionally provided false information or intentionally concealed the true situation, and that you were therefore misled into signing the contract. Second, the boundary between fraud and commercial hype. Exaggerated claims about the ability to perform and the prospects of profits may not constitute legal fraud. The court will review whether the statements are specific and whether they affect the decision to enter into the contract. Third, the choice between rescission and pursuing breach of contract. If you choose rescission, the contract will be legally binding from the outset, and the payments already made should be refunded; if you choose to pursue breach of contract, the contract will remain in force, and you can demand continued performance and compensation for losses. Fourth, the exercise period. The one-year period is a preclusive period without suspension or interruption. If the right of rescission is exercised beyond the time limit, it will be extinguished. Fifth, cross-handling of civil and criminal cases. If the other party's actions involve contract fraud, the civil case may be ruled to dismiss the lawsuit or suspend the trial, and it is necessary to advance the criminal proceedings first.

III. Professional analysis by Henglue Lawyers

A sales contract dispute handled by Henglue Lawyers involves the intersection of fraud and criminal offenses. Since 2016, Company A has been supplying goods to Company B under the "Book Supply Contract". In June 2022, after the two parties signed a new contract, Company A entered into a "Maximum Amount Mortgage Contract" with Liu *. Liu * provided a maximum amount mortgage guarantee of 14.0 million yuan using a real estate property in Xicheng District, Beijing. However, Company B failed to make payments as agreed, and as of September 30, 2022, the outstanding amount reached 8.35247085 million yuan. Company A sued Company B for payment of the purchase price and breach of contract damages, and claimed priority repayment on the involved real estate. Liu *, however, argued that he had no intention to provide the mortgage, and that his signature was fraudulently obtained by Company B in collusion with a third party, C Company. Liu * submitted evidence showing that C Company had committed a series of frauds under the guise of "real estate mortgage cooperation", involving more than 20 victims, totaling approximately 200 million yuan and involving over 50 properties. After reviewing the case, Henglue Lawyers pointed out that Liu * was in fact a victim of the criminal case, and whether the third party committed fraud directly affected the validity of the mortgage contract, which required verification by criminal investigation. Therefore, they argued that the case involved suspected economic crimes and should be dismissed and referred to the public security organ. The court accepted this argument, ruled to dismiss Company A's lawsuit, and transferred the relevant materials to the public security organ. This case was handled by the professional lawyer team of Beijing Henglue Law Firm (the practice certificate number shall be subject to the documents issued by the judicial administrative authority). This case demonstrates that when the defrauded party claims the invalidity or rescission of the contract, it is often intertwined with the criminal proceedings involving suspected crimes. It is crucial to fix the fraud clues and explain the situation to the court as early as possible in order to protect their rights.

IV. Practical suggestions and legal basis

According to Articles 148, 149, and 152 of the Civil Code of the People's Republic of China (adopted on May 28, 2020 and implemented on January 1, 2021), as well as Article 157 regarding the return of property and compensation for losses after the invalidation or revocation of civil legal acts. Suggestions: First, verify the other party's qualifications, credentials, and performance capabilities before signing the contract, and incorporate key commitments into the contract; Second, immediately notify the other party in writing and claim revocation upon discovering fraud to avoid exceeding the one-year exclusionary period; Third, simultaneously preserve the original carriers of false statements, including brochures, emails, audio recordings, and chat logs; Fourth, if suspected of a crime, report the case to the police immediately and retain the police report, and explain the intersection of civil and criminal cases in civil litigation; Fifth, the economic consequences of revocation and breach of contract are different. It is recommended to choose one claim after the lawyer's calculation, and not to switch arbitrarily in litigation. Related cases can be combined with the above suggestions for reference.Criminal defenseAndContract disputesA comprehensive judgment based on experience.

5. Henglu Law Firm's Advice

The right of revocation is a right with a "shelf life". The one-year period starts from the date when the revocation grounds are known or should be known. Many people miss the deadline due to repeated negotiations and ultimately have to resort to claiming breach of contract liability. When handling similar cases in Beijing, the court is more cautious in determining fraud, usually requiring that the false statements be specific, identifiable, and have a causal relationship with the decision to enter into the contract. A general feeling of being deceived is difficult to be supported. At the same time, it is necessary to distinguish whether the party deceived is the direct counterparty or a third party. In the case of third-party fraud, it is also necessary to prove that the contractual counterparty knew or should have known. If the company has no assets and the defendant may be transferred, it is necessary to consider the connection between property preservation and creditor's declaration while claiming revocation, to prevent winning the judgment but having no place to enforce it. If necessary, reference can be made to it.Creditor's rights and debts, and enforcement的追责思路。

VI. Frequently Asked Questions

Q1: Is there a high chance of success in arguing for the cancellation of the contract?

If there is clear evidence of false statements and the claim is exercised within one year, there is a higher chance of success; however, it's more difficult to gain support for revocation claims if there are only verbal promises or statements that fall under the category of commercial hype.

Q2: What evidence do I need to prepare?

The contract and supplementary agreement, promotional materials and webpage screenshots, emails and WeChat messages, audio recordings, payment receipts, the other party's subject and qualification inquiry records, report materials, and administrative punishment information, etc.

Q3: What's the approximate cost?

The litigation fees are calculated in stages according to the amount of the disputed subject matter, and are prepaid by the plaintiff and borne by the losing party after the plaintiff wins the case; the attorney's fees are determined in accordance with the contract of entrustment, and the fees involved in the criminal part are agreed upon separately.

Q4: How long does the process take?

The first-instance trial generally lasts three to six months. If there is an overlap between civil and criminal cases and it is necessary to wait for the criminal verdict, the trial period will be suspended or extended accordingly, and the overall duration may exceed one year.

Q5: What should I do first?

First, fix the original evidence of the false statements and file a written request for revocation. At the same time, check whether the other party has any criminal clues, and then decide whether to initiate a lawsuit for revocation or a lawsuit for breach of contract.Beijing Henglu Law FirmIt is not recommended to waste the cooling-off period during the negotiation process.

The above Q&A is mainly based on the judicial practice in the Beijing area. There may be differences in the adjudication standards in different regions. It is recommended to consult a professional lawyer based on the specific circumstances of the case.

If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the evidence materials, to avoid missing the statutory time limit. →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 publicly available 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 the event of a dispute, please consult a practicing lawyer in a timely manner.