On Legal System Of Period Of Guarantee In China

Guarantee period constitutes an important component of the guarantee system. It plays a key role in ensuring the effective function of the guarantee system and enhancing the creditaility of the market. Probing the issues related to guarantee period not only helps settle theoretical controversies, but also has an important and direct influence upon the interests of the parties involved. This research probes the basic theoretical issues related to guarantee period with the method of contrastive analysis. Further investigation is conducted upon the deviations from the nature of guarantee period in the design of guarantee system in the current Law of Sponsion, and suggestions are made for their rectifications. Guarantee period is the maximum lengthen of time, during which the guarantor allows the obligee to exercise his right upon the request of guaranteed indebtedness, and it is classified into two types: agreed period and the period regulated by law. Guarantee period neither belongs to litigation validity, nor is it the period during which a certain right is valid. It is an independent temporal condition, i.e. the period of the loss of rights. If the obligee does not exercise his rights, he will lose his creditor's rights upon the termination of the guarantee period; and the guarantor is also freed from his responsibilities. It is supposed in this research that the application of interruption of litigation validity is unreasonable in theory and impracticable in practice, therefore, rectifications should be done in lawmaking. The starting of the guarantee period is influenced by various factors. If the guarantor enjoys the priority of plea, the guarantee period starts with the termination of the obligor's properties by the obligee. If not, the guarantee period starts when the obligor quits his responsibilities. In order to overcome the clash between the guarantee period and litigation validity, restrictions should be placed upon the manners of the exercise of the right upon the request of guaranteed indebtedness by the obligee during the period. The maximum amount guarantee is a special one with a special calculation of its guarantee period.