On Validity Of Unauthorized Disposal

The discussion of legal effect of unauthorized disposition derived from article 51 of china contract law is significantly important to the construction of China civil law system. By means of the method of comparison, the author argues that most of countries of Continental Law System and Anglo-American Legal System stipulate the contract of Unauthorized Disposition as valid contract so do the international treaties, and it is the tendency of the world legislation. Recognizing of the effect of obligation can protect not only the interest of the third party but also the interest of the obligee. The author devotes to prove that the effect of unauthorized disposition in our country is valid from following aspects. Firstly, the "contract is valid" theory accord with thespirit of the modern contract law-freedom,justice and efficiency. Secondly, thistheory correlates with good intentions system, right minor faults guarantee system etc theories which are close related. Thirdly, valid creditor's contract can protect the interest of the innocent party and the transaction safety. As we know, market economy is based on rule of law. The purpose of legislations is to promote the economic development and stimulate business activities. Bearing this in mind, we should admit the validity of contract involving unauthorized disposition while keeping the effect of transferring ownership revocable. This attitude will meet the demands of market economy and leave more room to the application of the institution of bona fide possession. It also tallies with current civil law system.