Research On The Conflicts Of Rights Between International Factors And Third Parties

As a new international settlement, the international factoring is situated between the commercial and bank credit settlements, which is suitable to the popular Non-L/C settlement style. So that international factoring is widely used in international trade settlement and financing abroad, while it is not so in china. The reason why we lag behind is that we are weak in law researching, which is still in entry-level. This paper focuses on the conflicts of rights between international factors and third parties instead of reaching every aspect involved,.The first chapter gives a brief introduction of international factoring in chapter one, concludes that transnational assignment of credit, which is incomplete, special cession in civil law, is the legal basis of international factoring and analyzes the legal obligations of the exporter.The second chapter analyzes the conflicts of rights between international factors and third parties respectively and offered some suggestions for the settlements. Firstly, it analyzes conflicts of rights between factors and other obligees of accounts receivable, include other obligees during multiple exchange, negotiable instruments holders and hypothec obligees. Secondly, it talks about conflicts between factors and reserved rights of pre-seller of exporter, banks which hold trust deed, lien of carrier, exporter's sales agents, which are obligees of goods. Finally, it analyzes conflicts between factors and exporter's trustee in bankruptcy. The second part of this thesis analyzed these conflicts respectively and offered some suggestions for the settlements.The third chapter refers to other legal issues concerning the conflicts of rights between international factors and third parties, such as reasons of conflicts of rights between international factors and third parties, regulations for conflicts of rights between international factors and third parties and legal suggestions of construction of China's related legislation. In the end, taking account of the practice of international factoring, the author puts forward the most economical and reliable ways to avoid these conflicts.