Section 3: Organisations, Institutions and Associations as Legal Persons
Article_50
An organisation with independent funds shall have the status of a legal person from its date of establishment.
An institution or association which fulfils the criteria of a legal person and which is not required by law to register as a legal person shall acquire the status of a legal person from the date of its establishment. An institution or association which is required by law to complete procedures for registration as a legal person shall
acquire the status of a legal person following examination, approval and registration.
Section 4: Joint Operations
Article_51
In the case of a joint operation between enterprises or between an enterprise and an institution, forming a new economic entity which independently assumes civil liability and which fulfils the criteria of a legal person, such entity shall acquire the status of a legal person following examination, approval and registration by the authorities in charge.
Article_52
Where enterprises or an enterprise and an institution join for business purposes
without fulfilling the criteria of a legal person, each party to the joint operation shall, in accordance with its proportion of contributed funds or the provisions of an
agreement, assume civil liability with its respective property or with the property for operation and management. Where joint liability is to be borne according to law or the terms of an agreement, the parties shall assume joint liability.
Article_53
Where enterprises or an enterprise and an institution join for business purposes and operate independently in accordance with the provisions of a contract, their rights and duties are as stipulated by the contract and each shall assume civil liability.
Chapter IV — Civil Legal Acts and Agency
Section 1: Civil Legal Acts
Article_54
Civil legal acts are the legitimate actions of a citizen or legal person in establishing,
modifying or terminating civil rights and civil obligations.
Article_55
A civil legal act shall fulfil the following criteria:
(i) the actor shall possess the appropriate capacity for civil acts; (ii) the intention shall be shown to be genuine; (iii) it shall not violate the law or the public interest.
Article_56
A civil legal act may be in written, oral or other form. Where the law stipulates a particular form, this shall be complied with.
Article_57
A civil legal act is legally binding from the time it originates. An actor may not rescind or modify an act without reference to the law or without obtaining the consent of the other party.
Article_58
The following civil legal acts are not valid:
(i) those performed by a person without capacity for civil acts;
(ii) those which, according to the law, may not be performed independently by a person with limited capacity for civil acts;
(iii) those performed by way of one party cheating, coercing or taking advantage of the other party's precarious situation, thereby causing the other party to act against his true wishes;
(iv) those performed in collaboration and with ill intent, harming the interests of the State, collective or a third party;
(v) those which violate the law or interests of society;
(vi) economic contracts which contravene State planning directives; (vii) those which conceal illegal aims in a legal form.
Invalid civil legal acts shall have no binding force from the time of commencement
of the act.
Article_59
In the case of the following civil acts, one of the parties has the right to petition the People's Court or an arbitration organ to modify or rescind the act: (i) an act where the actor seriously misunderstands the content of the act; (ii) an act where there is a clear loss of fairness.
Civil legal acts which are rescinded are invalid from the time of commencement of the act.
Article_60
The partial invalidity of a civil legal act shall not affect the validity of other parts, which shall remain valid.
Article_61
After a civil act is confirmed invalid or is rescinded, the party concerned shall return the property obtained as a result of the act to the party which has suffered loss. The party at fault shall compensate the other party for any resulting loss. Where both parties are at fault, each shall undertake respective liability.
Where both parties collaborate with ill intent to harm State or collective interests or the interests of a third party, both parties shall be required to hand over the property they have acquired, ownership of which shall revert to the State or collective, or return it to the third party.
Article_62
Conditions may be attached to civil legal acts. Civil legal acts with conditions attached become valid upon fulfilment of such conditions.
Section 2: Agency
Article_63
Citizens and legal persons may perform civil legal acts through an agent.
An agent shall, within the scope of his agency, perform civil legal acts in the name of the principal. The principal shall assume civil liability for the representing acts of the agent.
Civil legal acts which, according to law or express agreement between the interested parties, must be performed by the principal may not be performed by an agent.
Article_64
Agency includes agency by mandate, statutory agency and designated agency. An appointed agent shall execute his agency rights in accordance with the principal's appointment. A statutory agent shall execute his agency rights in accordance with the provisions of the law and a designated agent shall execute his agency rights as designated by the People's Court or designating unit.
Article_65
An appointment of agency for civil legal acts may be in written or oral form. Where required by law to be in written form, it shall be in written form.
An appointment of agency in writing shall clearly state the personal or business name of the agent, the matters subject to agency, the limitations and duration of agency and shall bear the signature or seal of the principal.
If the written appointment of agency is not clear, the principal shall undertake civil liability toward any third parties. The agent shall bear joint liability.
Article_66
Civil liability for acts performed without agency, beyond the scope of agency or after termination of agency rights shall only be assumed by the principal following
ratification by the principal. The actor shall assume civil liability for acts not ratified by the principal. Failure on the part of the principal to deny an act which he is aware of being performed in his name by another person shall be deemed to be consent. If an agent does not fulfil his duties and thereby causes the principal to suffer damage, he shall assume civil liability.
If an agent and a third party collaborate to harm the interests of the principal, the agent and the third party shall bear joint liability.
If a third party performs a civil act with an actor while aware that the actor is without agency rights, is exceeding his scope of authority or that such authority has
terminated, and thereby causes damage to another person, the third party and the actor shall bear joint liability.
Article_67
If an agent knows that the matters in which he is appointed to act as agent are illegal
and nevertheless carries out his agency activities or if a principal is aware that the actions of an agent are illegal and fails to object, the principal and agent shall bear joint liability.
Article_68
If, in the interests of a principal, an appointed agent finds it necessary to appoint a sub-agent, he shall obtain the prior permission of the principal. If he does not obtain the prior permission of the principal, he shall notify the principal promptly after the event. In the event that the principal does not agree, the agent shall bear civil liability for the acts of the sub-agent appointed by him, except where the sub-agent has been appointed under emergency conditions for the purpose of protecting the interests of the principal.
Article_69
Should any one of the following conditions exist, the appointed agency shall terminate:
(i) expiration of the period of agency or completion of the matters entrusted to the agent;
(ii) cancellation of the appointment by the principal or resignation from the appointment by the agent; (iii) death of the agent;
(iv) loss by the agent of capacity for civil acts;
(v) termination of the legal person constituting the principal or the agent.
Article_70
Should any one of the following conditions exist, the statutory agency or designated agency shall terminate:
(i) acquisition or resumption of capacity for civil acts by the principal; (ii) death of the principal or agent;
(iii) loss by the agent of capacity for civil acts;
(iv) cancellation of designated agency by the People's Court or designating unit; (v) dissolution, due to other reasons, of the guardianship relationship between a