Author(s)

Luo Shirong

Corresponding Author

Luo Shirong

Abstract

As a crucial institution for maintaining social order and justice, the law possesses much power to set rules. However, the limitation of its power in regards to its relation with transactions that manifest with the consent between two primary parties would be closely examined and evaluated in the essay below. By analysing four separate facets of this problem: the validity of the transaction, existing legal regulations, and the case of the OTC market, and at last, the undesirable legal consequences of the transaction, the essay draws conclusion that the law does have power to prevent transactions if they are invalid, illegal or lead to undesirable consequences.

Keywords

Law, Power, Blocking transactions