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When Signing a Contract, One Party Conceals Important Facts. Is the Contract Valid?

2020/1/8

If the contract violates laws or damages the interests of the state, the contract shall be invalid; Otherwise, such a contract is an alterable or voidable contract.

According to the provisions of the contract law, one party conceals material facts when signing a contract. If such concealment causes the other party to sign the contract under misunderstanding, such concealment will constitute fraud. If the conclusion of such a contract does not violate laws and regulations and does not harm the national interests, public interests or the legitimate rights and interests of others, the creditor may apply to the court or arbitration institution to amend or cancel the contract; Otherwise, the contract is invalid. Therefore, whether such a contract is valid or invalid depends on whether it violates laws and regulations or damages national interests.

What are the consequences of a contract being revoked or invalidated? Property acquired as a result of the contract shall be returned; If it cannot be returned or is not necessary to be returned, compensation shall be made at a discount. The party at fault shall compensate the other party for the losses thus incurred. If both parties are at fault, each party shall bear the corresponding liabilities.

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