Is a scrap car contract valid now

The contract for the sale of scrap cars is invalid. The law provides that the sale of scrapped motor vehicles is prohibited, so the sale contract is invalid because of the violation of the provisions of the law. The contract is invalid because it violates the law. Not only is it invalid, but the act of buying or selling a used motor vehicle is also sanctioned by the law.

Legal basis

Article 12 of the Measures for the Administration of the Recycling of End-of-Life Vehicles

The end-of-life vehicle owning unit or individual shall promptly sell the end-of-life vehicle to the end-of-life vehicle recycling enterprise.

No unit or individual shall sell, give or otherwise transfer the end-of-life automobile to a unit or individual that is not an end-of-life automobile recycling enterprise; no dismantling of end-of-life automobiles shall be allowed.

Article 13

The end-of-life automobile recycling enterprises shall register end-of-life automobiles recovered vehicle by vehicle; and shall promptly report to the public security authorities if they find that the recovered end-of-life automobiles are suspected of being stolen, robbed, or otherwise involved in crimes.

The end-of-life automobile recycling enterprises shall not dismantle, modify, assemble, or sell automobiles suspected of committing crimes, as well as their "five major assemblies" and other spare parts.