Functionalist Interpretation Of Title Retentio

In the context of the formalistic interpretation of the reservation of ownership,there are several interpretations of the transfer of ownership based on the methods of transfer,including the theory of simple delivery,the theory of special change of chattel rights,the theory of ownership transfer with attached stoppage condition,the theory of partial ownership transfer,and the theory of distinguishing ownership.Among them,the theory of ownership transfer with attached stoppage condition is more in line with the reservation of ownership regulations prior to the promulgation of the Judicial Interpretation of the Contract Law in 2012 in China.However,after the implementation of the Civil Code,this theory,like other theories,conflicts with current legislation to a great extent.The formalistic interpretation of the reservation of ownership may lead to the coexistence of ownership with different rights and powers in the Civil Code,resulting in confusion in the civil law system.This formalistic interpretation path disregards the guarantee function of the reservation of ownership,making it difficult to explain the guarantee function embodied in the seller’s "refund of surplus" while promoting hidden guarantees.The functional interpretation path of the reservation of ownership can eliminate the hidden guarantee risks of the seller by recognizing the guarantee composition of the reservation of ownership and acknowledging that the unregistered reservation of ownership has similar effects as chattel mortgage,which can be combined with registration.The unified ranking rule of Article 414 of the Civil Code can be applied to the reservation of ownership under the functionalist interpretation path,which can improve the transparency of relevant transactions and make the protection of relevant rights predictable.The functionalistic interpretation path of the reservation of ownership is smoother in reference to the implementation procedures and liquidation rules of secured property rights,which further affirms the guarantee characteristics of the reservation of ownership regulations.The rule of "contracts with guarantee functions" serves as a channel for communicating between the object and the debt,making it possible to include non-typical secured property rights,such as the reservation of ownership,into the security system,and making the theory of secured property rights stand out among the various theories of the reservation of ownership under the functionalist interpretation path,becoming a more appropriate characterization of the reservation of ownership.In the current stage of the combination of formalism and functionalism in civil law,when conflicts arise between the reservation of ownership and the recall right on the ownership composition theory,it is not necessary to negate the recall right on the ownership composition theory.Instead,it can be viewed as a special provision for self-help.In the case of floating chattel mortgages,the reservation of ownership can certainly apply to the super-priority of the price,and in the case of ordinary guarantees,the reservation of ownership can also be applied to the super-priority of the price to protect the safety of the investors’ funds and reduce investment risks.