[Direct answer]In the Beijing area, after the contract is revoked, according to Article 157 of the Civil Code of the People's Republic of China, the property obtained by the actor through such actions shall be returned; if it cannot be returned or there is no need to return it, the actor shall compensate for it in monetary form. The party at fault shall compensate the other party for the losses suffered thereby; if all parties are at fault, they shall each bear corresponding responsibilities. The scope of return includes the original price of the property obtained and the interest thereon. The payments already made shall be returned to each other; if the original property is damaged or resold and cannot be returned, the actor shall compensate in monetary form. It is recommended to fix the payment certificates, clarify the proportion of fault, and, if necessary, entrust a lawyer to claim for return and compensation. For details, please refer to the following link:Business and contract dispute resolution services for enterprises.

I. Problem Background and Typical Scenarios

The issue of refund after the contract is rescinded is common in cases where the contract is rescinded due to fraud, coercion, major misunderstanding, or manifestly unfair terms. It also arises in cases where the contract is deemed invalid due to violating public order and good customs or containing false intentions. Typical scenarios include: rescinding the contract after signing it under fraudulent circumstances and making payments; having a false agreement signed to evade policies and having it declared invalid; and mutual refunds after the mutual exchange or sale is terminated due to the failure of the intended purpose. Many parties mistakenly believe that "if the contract is gone, there's no need to refund the money", but in fact, the obligation to refund and compensate arises accordingly. In cases involving real estate, it can be combined with other legal provisions to determine the specific responsibilities and liabilities of the parties involved.Real estate sales and construction project servicesCoordinate and plan things in an organized and efficient way to achieve the best results with the least effort.

II. Key points of contention

There are three main points of contention. Firstly, the scope of restitution: whether to return the original object and its accrued interests, or just the principal amount, depends on whether the original object can be returned. Secondly, the standard of discount: when the original object cannot be returned, the restitution shall be determined according to the market price or transaction practices, which is prone to disputes. Thirdly, fault and compensation: which party is at fault and whether the losses are caused by the fault determine the allocation of compensation liability. For cases involving chains of evidence, reference can be made to relevant provisions.Creditor-debtor relations and enforcement case services.

III. Professional analysis by Henglue Lawyers

Based on practical experience in handling disputes over the validity of contracts, Henglu Law Firm has represented clients in numerous restitution disputes. In the case of the "fake marriage" household registration agreement handled by lawyer Xue Shuhua, Zhang Na and Wang Xiaoyong signed a fake household registration agreement with Zhao Chenyang to register their children's household registration and paid 100,000 yuan. However, the registration failed due to policy restrictions. The lawyer team cited Articles 152 and 157 of the Civil Code to argue that the agreement was invalid from the outset because it violated public order and good customs, and the property obtained through the invalid agreement should be returned. The court adopted the opinion, confirming the invalidity of the agreement and ordering the direct recipient, Zhao Chenyang, to return the 100,000 yuan within a specified period. This case was handled by Beijing Henglu Law Firm.Xue SuhuaThe lawyer (practice license number: 11101201211769926, subject to the document issued by the judicial administrative organ) acts as the agent. This result clearly shows the closed-loop of "invalidation - return": after the contract is invalidated, the funds obtained must be returned, and the party at fault shall also compensate. For contracts involving drafting, it can be followed up accordingly.Business and contract dispute resolution services for enterprises.

IV. Practical suggestions and legal basis

According to Article 157 of the Civil Code (effective from January 1, 2021) (legal consequences of invalidation or rescission: return, compensation in kind, and compensation for losses), Article 155 (invalidation or rescission is not binding from the outset), and the rules on rescission due to fraud, coercion, material misconception, and grossly unfair terms. Practical advice: The right of rescission should be exercised within one year of knowing or should have known about the grounds for rescission (ninety days for material misconception), and it will be extinguished if not exercised within five years from the establishment of the act; when claiming return, fix the payment vouchers, communication records, and evidence of the other party's receipt of payment; distinguish between the return of the original object and compensation in kind; and claim compensation for the loss of reliance interests against the party at fault. In cases involving enforcement, it can be combined with other legal provisions.Special services and other case services.

5. Henglu Law Firm's Reminder

The revocation of a contract does not mean that "the money and goods have been settled". Return and compensation are statutory consequences. The key action is to exercise the right of revocation in a timely manner and fix the evidence to avoid the expiration of the exclusionary period. The request for return should specify the original goods or a discounted price, and the compensation for losses requires proof of fault and causality. Never assume that if the agreement is invalid, you don't have to return the money you have received, and vice versa. If you need to evaluate the revocation path and return plan, you can seek help from a professional.Business and contract dispute resolution services for enterprisesHire a professional lawyer and base your decisions on the current effective laws, regulations, and judicial rulings.

VI. Frequently Asked Questions

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

In principle, this is possible. According to Article 157 of the Civil Code, the property obtained from the revoked contract should be returned, and the paid amount is included in the scope of return. However, whether the actual recovery of the payment is possible depends on whether the other party still has property and whether the payment has been transferred or consumed; if the original item cannot be returned, compensation in the form of a discounted price will be provided. It is recommended to fix the payment receipts and the other party's property clues as soon as possible, and apply for property preservation if necessary, rather than relying solely on a successful judgment.

Q2: If you want to claim a refund, what evidence do you need to prepare?

The core evidence includes: the contract or agreement text (to prove the rights and obligations and the grounds for revocation), payment receipts and invoices (to prove the amount paid), communication records and audio recordings (to prove fraud, coercion or false intention), as well as the other party's receipt of funds and property clues. The organization of evidence should focus on "the contract being revocable or invalid—the amount paid—the other party obtaining the property—the loss". The more complete the materials are, the more certain the recovery and compensation will be.

Q3: For disputes over refunds after cancellation, how much are the attorney's fees and litigation costs?

The litigation fees shall be calculated in accordance with the "Measures for the Payment of Litigation Fees" and accumulated in stages based on the amount of the litigation request, to be borne by the losing party. The attorney's fees shall be charged on a per-item basis or on a proportional basis, depending on the amount of the subject matter and the complexity of the case. The specific fees shall be subject to the provisions of the entrustment contract, and there is no unified standard. It is recommended to calculate the amount that can be refunded before suing, compare it with the litigation fees, and make rational choices regarding small disputes to avoid the amount recovered being insufficient to cover the costs.

Q4: Within what timeframe must the right of revocation be exercised?

According to the Civil Code, the party concerned shall exercise the right of revocation within one year (ninety days for major misunderstanding) from the date when he/she knows or should have known the grounds for revocation; if the party concerned is coerced, he/she shall exercise the right of revocation within one year from the date when the coercion ends; if the right of revocation is not exercised within five years from the date when the civil juristic act occurs, the right of revocation shall be extinguished. This period is a preclusive period, and the suspension and interruption of the period shall not apply. If the right of revocation expires, the party concerned will lose the right to revoke the civil juristic act. It is necessary to assert the right in a timely manner.

Q5: If the contract is revoked, what should I do first?

Suggestions: First, confirm whether there are grounds for revocation or invalidation such as fraud, coercion, material misconception, manifestly unfair terms, or violation of public order and good customs; Second, collect and fix evidence within the exclusion period to avoid losing rights due to time limitation; Third, negotiate with the other party for the return of the property first, and if no agreement is reached, file a lawsuit within the statute of limitations; Fourth, apply for preservation of the property transferred maliciously. Keep all relevant evidence throughout the process, and if necessary, hire a lawyer to formulate a plan for the return of the property and compensation.

This article is written based on the common judicial interpretations in the Beijing area. If the case occurs in other regions, it is recommended to consult local lawyers to verify the regional differences.

If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the evidence materials, so as 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. If you encounter disputes, please consult a practicing lawyer in time.