Study On The Application Of Factoring Contract In China

The transfer of accounts receivable is the core of factoring contracts.It is a comprehensive financial service contract with strong financial attributes.Under the modern trade mode of "sell on credit and buy on credit",factoring is helpful for suppliers to revitalize accounts receivable financing and promote the high-quality development of the real economy.The Civil Code of the People’s Republic of China,adopted on May 28,2020,specifies the factoring contracts for the first time in Articles761 to 769,and factoring contract in China has entered the track of legalization.However,from the perspective of the legislative content of factoring contract,the problems of imperfection and incoordination still exist to varying degrees.The basic theory of factoring contract is easy to cause misunderstanding or disputes in practical application,so how to interpret and apply the factoring contract norms remains to be studied in depth.This paper makes an in-depth study of factoring contract by means of empirical analysis,comparative study and legal hermeneutics.Firstly,the meaning and type of factoring contract are expounded,the assignment and guarantee attribute of factoring contract is further clarified,and then the constitutive elements of factoring contract are considered from both form and substance Secondly,from the judicial practice,it summarizes the key and difficult problems encountered by the court when applying the rules of factoring contract,and demonstrates the necessity of explaining and applying the factoring contract.Thirdly,the comparative research method is used to sort out the provisions and application status of factoring contracts in foreign countries and international treaties,find the similarities and differences of legal regulations on factoring contracts,and summarize the common principles.Finally,based on the "Civil Code" to explain and apply the factoring contract norms,put forward the suggestions.on the one hand,from the scope of the object of factoring contract and the rules of the transfer of creditor’s rights in the factoring contract,the Article 761,Article 763 and Article 768 involved are explained.By explaining the important concepts and analyzing the legitimacy around the doubtful points,the application points of the rules are finally clarified.On the other hand,with the help of the indicative law of Article 769,it makes a macro understanding of factoring contract from the perspective of creditor’s rights assignment.Starting from the whole system of Civil Code,this paper analyzes and sorts out the connection and application of factoring contract with the general provisions of Civil Code and the general provisions of contract,so as to achieve the purpose of correct application of factoring contract.