The reasons for canceling the contract cancellation right are as follows:
1. There is a major misunderstanding in the conclusion of the contract.
2. The conclusion of the contract shows fairness.
3. One party causes the other party to conclude the contract against its true intention by means of fraud, coercion or taking advantage of the other party's difficulties.
[Legal Basis]
In Article 54 of the Contract Law, one party has the right to request the people's court or arbitration institution to change or cancel the following contracts:
(1) Concluded due to major misunderstanding;
(2) It is obviously unfair when concluding the contract. If one party causes the other party to enter into a contract against its true intention by means of fraud, coercion or taking advantage of the other party's difficulties, the aggrieved party has the right to request the people's court or an arbitration institution to modify or cancel the contract. If a party requests a change, the people's court or arbitration institution shall not revoke it. (The Contract Law will expire on December 31, 2020).
According to Article 147 of the Civil Code, the actor has the right to request the people's court or arbitration institution to revoke a civil legal act based on a major misunderstanding. (The Civil Code will enter into force on January 1, 2021).