On The Perfection Of Factoring Contract System In China

It has been 30 years since we joined FCI in 1993.In the past 30 years,our factoring contract system has grown from nothing to nothing,from disorder to order,from chaos to norm.The development of 30 years has made our factoring industry step by step on the right track and realized the great achievement in accordance with the law.The development of factoring contract system not only provides clear and direct legal basis for the development of factoring business,but also provides power for the development of small and medium-sized enterprises and real economy.Especially under the tide of economic globalization,the rapid development of factoring business relifies the financing difficulties and expensive problems of many small and medium-sized enterprises in our country.On May 28,2020,the Civil Code was formally promulgated,which is a milestone in China’s factoring industry.It affirms the legal status of typical contracts and independent contracts of factoring contracts at the legal level.It not only builds the basic framework of factoring contracts from the legal level,but also provides important normative basis for the Civil court to hear disputes concerning factoring contracts according to law.Moreover,it provides necessary legal guarantee to promote the healthy development of Chinese factoring industry,and it is a summary of commercial practice.The 16 th chapter of typical contract section in the contract book stipulates the relevant system of factoring contract.Although there are only nine articles in this chapter,However,the definition,content and form of factoring contract,the effect of fictitious accounts receivable,the subject and mode of transfer notice,the effect of the change of basic contract,the different rights of the factoring with or without recourse,the effect of repeated transfer of accounts receivable and other features of the most specific factoring contract are stipulated.However,through the research and analysis of the content of the system,it can also be found that there are still need to be improved in our country’s factoring contract system.Therefore,this paper affirms that the Civil Code plays a positive role in the factoring industry,but also pays attention to the need for improvement in the contract system of factoring.The theoretical and practical circles have made a lot of discussion on this.By analyzing the theoretical origin and practical basis of the factoring contract system,and some foreign regulations and measures for the system,combined with concrete cases in practice and legislative exploration,this paper extracts relevant experience and enlightenment suitable for our country’s national conditions to improve and enrich the factoring contract system.Specifically,in addition to the introduction and conclusion,this paper is divided into four parts.The first part aims to clarify the intention of the system by analyzing the definition of factoring contract to distinguish it from other similar concepts,and compares and clarifies the legal nature of factoring contract.At the same time,it also classifies factoring contract according to the summary of theoretical and practical circles.This paper analyzes the characteristics of factoring contracts under different categories,and lays the groundwork for the following article.The second part is mainly to clarify its development history in the market economic development process by reviewing the history of relevant laws and regulations of the factoring contract system and the practice exploration of the system by various courts,and to conclude the current development status of the system through positive analysis,which affirms the value of the factoring contract system and points out its needs to be improved.The third part analyzes the relevant provisions of factoring contract in the Model Law of Factoring(draft)published by Germany,the United States and the International Association for the Unification of Private Law,and summarizes and distillate the experience suitable for our country.The fourth part is about the concrete measures to improve our factoring contract system.This part is based on the first three parts.In order to make a contribution to the development of factoring industry,this paper puts forward some suggestions on the further elaboration of the system from five aspects: the responsibility division,scope and debt paying order of debtors and creditors of receivables,the conditions of factoring contract,the notification of transfer of receivables,the effectiveness of factoring contract and the litigation jurisdiction of factoring contract disputes.