Study On Trust Contract

Trust Contract is a concept in Trust Law of our state and the Civil Law countries. It is a way to set up trust, and the main way in which the trust system is used. The study on essence and particularity of the Trust Contract, will facilitate clearly the legal position of trust contract in order to be incorporated existing private law in our country system, to realize the sufficient legislation adjustment to Trust Contract, and bring the Trust System economy function into play realistically.The word of Trust originates from the West Country. In an era of ancient Rome Law, emerged the trust testament. The trust with modern meaning is from the using system of British feudal era, which is a kind of design to evade law, and a product of the flat law of weighing apparatus. Since the 20th century, because of Trust's remarkable function of financing, arranging for investment, coordinating economy, servicing public service and so on, our country and continental law countries have introduced the extremely flexible property management system, arrange the trust before one's death into the contract. China issued "Trust Law of The People's Republic of China" in 2001. Thus, trust system took root in China. From provisions of the Trust Law, what we introduced is commercial trust which is set up by the way of trust contract.Trust contract relies on the trust system, which reflects its arrangements for people's rights and obligations. It is a key to connect trust and contract. There are differences and relations between trust contract and contract of commission, contract of mediate and contract of mandate which have already existed in present Contract Law. Trust contract is a special contract in nature, which is an extension of the contract of commission. So, "Trust Law" is a special part of the "Contract Law". It mainly adjusts trust contract. As a special contract, its speciality mainly reflects on: first is, trust contract is on the basis of trust property, and it is the essential terms of trust contract. Trust property has identity and independence in law; second is, the beneficial right basing on trust contract is a special creditor's rights, is different from creditor's rights in normal contracts; third is, the avoidance right of the beneficiary is different from the avoidance in "Contract Law" in ways of purpose, enjoyment and legal results; forth is, trustee obligations to fulfill the trust are set by "Trust Law", and it's coercive. The trustees have to comply with them. Clearing the particularity of trust contract is helpful for differentiating trust contract and normal contract in practice, and then people can use law properly.Because of the close integration between modern trust and investment, the type of trust contracts continuously expands. Thanks to the special legal status of the trustee in the trust relationship, the law set the obligatory norm to realize regulating the trust contracts which is indispensable in order to protect the rights of the trustee and the beneficiary. This mode which the public right intervenes the private right is also an inevitable requirement for the trust contracts as a special contract.Therefore, combining the trust system, this paper studies the essence of the trust contracts, commented its special characteristics to provide theoretical basis for its legal status and realize the connection between the Trust Law and Contract Law. At the same time, taking the collective fund trust contract as an example, the paper analyses the trust contracts in the actual practice. Basing on these, this article puts forward to some suggestions for regulating the trust contracts.