Legal basis: Civil Code of People's Republic of China (PRC).
Article 153 A civil juristic act that violates the mandatory provisions of laws and administrative regulations is invalid. However, unless mandatory provisions do not invalidate civil legal acts. A civil legal act that violates public order and good customs is invalid.
Article 157 After a civil juristic act is invalid, revoked or deemed invalid, the property acquired by the actor as a result of the act shall be returned; If it is impossible or unnecessary to return it, it shall be compensated at a discount. The party at fault shall compensate the other party for the losses thus suffered; If all parties are at fault, they shall bear their respective responsibilities. Where there are other provisions in the law, those provisions shall prevail.