2. If a third party commits fraud, causing one party to commit a civil legal act against its true meaning, and the other party knows or should know about the fraud, the defrauded party has the right to request the people's court or an arbitration institution to cancel it. "
legal ground
Article 148 of the Civil Code of People's Republic of China (PRC) * * * Validity of Civil Legal Acts of Fraud If a party commits a civil legal act against its true meaning by fraudulent means, the defrauded party has the right to request the people's court or an arbitration institution to cancel it.
Article 224 of the Criminal Law: Whoever, in violation of state regulations, commits one of the following illegal business operations and disrupts the market order, if the circumstances are serious, shall be sentenced to fixed-term imprisonment of not more than five years or criminal detention, and shall also, or shall only, be fined not less than one time but not more than five times the illegal income; If the circumstances are especially serious, he shall be sentenced to fixed-term imprisonment of not less than five years, and shall also be fined not less than one time but not more than five times for illegal gains or confiscation of property:
(a) operating a franchise or monopoly commodity or other commodities whose operation is restricted by laws and administrative regulations without permission;
(2) buying and selling import and export licenses, import and export certificates of origin and other business licenses or approval documents stipulated by laws and administrative regulations;
(three) without the approval of the relevant competent departments of the state, illegally engaged in securities, futures, insurance business, or illegally engaged in fund payment and settlement business;
(four) other illegal business activities that seriously disrupt the market order. "