Study Of Security Ability For Defects Of Right And Unauthorized Disposition

It is self-evident that security ability for defects of right plays an important rolein the modern trade. With the development of society and changing transaction forms,however, security ability for defects of right is at the risk of being marginalized,particularly in relation to the applicability of unauthorized disposition and bona fideacquisition. Meanwhile, it has close similarities with a number of systems in the civilrights, which also causes embarrassment to the applicability of the system, so thatmany domestic scholars conduct an in-depth exploration of its independence.According to Article3of "Interpretation of the Supreme People’s Court on IssuesConcerning the Application of Law for the Trial of Cases of Disputes over SalesContracts"(hereinafter referred to as "Interpretation of Contract Law (3)"),"Whereone party claims that a contract is void on the grounds that the seller had noownership or right of disposal over the subject matter at the time of contract formation,the people’s court shall not support such claims. Where the ownership of the subjectmatter cannot be transferred because the seller failed to acquire the ownership or rightof disposal, if the buyer demands that the seller assume liability for breach of contractor demands the rescission of the contract and claims compensation for damages, thepeople’s court shall support such claims." After the introduction of the explanation,some new changes brought to the unauthorized disposition which will require re-examination of the relevant systems and identification of their differences so as tobetter play the role of security for defects of right in the social life.This paper is divided into three parts: the first part mainly elaborates the basictheories of security ability for defects of right, including its theoretical meaning,origin, legal basis, application, constructive conditions, and effectiveness; the secondpart describes security ability for defects of right, unauthorized disposition, bona fideacquisition and the relationship between the three systems; the third part elaboratesthe impact of security ability for defects of right on unauthorized disposition and thenew understanding of "Interpretation of Contract Law (3)".