literature Mainland China English summary

Legal Consequences of Operating Beyond Business Scope

公司超范围经营之法律后果研究——兼论无关联主义

Argues that business scope is a special commercial capacity category rather than the whole of corporate civil capacity, so contracts beyond scope should be assessed on their own validity.

Open source

Brief English Introduction

This article anticipates the modern rule that exceeding business scope should not automatically decide contract validity. It treats business scope as a regulatory and disclosure device rather than the outer boundary of civil capacity.

Use It For

Use it between older ultra vires theory and Civil Code article 505.

Teaching Notes

Ask students whether regulatory illegality and civil validity should be separated.