On Legal Issue Of International Factoring

As a promising field of business, International Factoring is playing a more and more important role in promoting the development of the international trade. This paper analyzes and discusses the definition and origin of Factoring, then deals with the kinds of the International Factoring and its operation, International Factoring organization as well as corresponding international legislation, and analyses the advantages and limits of International Factoring compared with other settlements of international trade. On the basis of discussion of the opinions on the legal nature of International Factoring and on the relation between the assignation of receivable account and International Factoring and other aspects of International Factoring, this article puts forward its view on the legal nature of the International Factoring. In order to understand the legislation of the International Factoring better, comparison of legislation of several countries on Factoring was made in this article. Combining the UNIDROIT CONVENTION ON INTERNATIONAL FACTORING and CODE OF INTERNATIONAL FACTORING CUSTOMS, this paper analyzes the legal relations between the International Factoring parties, i.e. the exporter, the importer and the Factor. The payment in International Factoring which is easily given rise to disputes, the conflict of obligatory right of receivable account with other rights, and the deceit in International Factoring are discussed in detail in this paper, then suggestion to avoid the deceit is given at last. Combining the Contract Law of the People Republic of China and analyzing the legislation on the International Factoring, this paper studies the basic legal framework of the International Factoring in our country, on which basis some legislation suggestions to regulate and prompt the International Factoring are given.