On The Validity Of The Loan Contract Between Corporations And Its Risk Prevention

It is essential to acknowledge the validity of the loan contract between non-financial corporations from both the theory and judicial practice. Only if build the risk prevention measures after acknowledging the contracts'validity, can it ensure the market economy activities orderly.The first chapter in this paper describes the judicial practice status for the validity of the loan contract between corporations, and discusses the different classification of the loan contracts between corporations; it also sorts out the relevant legal norms about the validity of such contracts, to summarize the development trend of such contracts. It also references to other countries'and regions'law, in order to make the general description of the loan contract's validity between corporations.The second chapter is the rethinking of the validity of such contracts in our country from two aspects. First of all, it is defective for the judge to make invalid judgment by the fifty-two fifth provision in contract law, while not consist with the principle of contractual autonomy; it is effective to limit national compulsory within this filed if acknowledging the validity of such contracts. The fairness and efficiency principles in a formal market also require admit the validity of this kind contracts; second, in real economic activities, there have been some relevant policies and laws to acknowledge this kind of contracts'validity, which is good for the development of the small and medium-sized enterprises; in the case of private lending has been released selectively, the loan between corporations should not be denied totally and blindly.The third chapter discusses the risk prevention after acknowledging the validity of the loan contracts between corporations, including the preventive measures and regulatory measures. It is necessary to prevent the risk, so the corporations should have their own prevention awareness. They also need to make full use of financial mortgage, floating charge, the risk burden system and so on to prevent the risk. At the same time, it needs to improve the law for corporations'entry and exit system, while the government agencies and intermediary organizations ought to play a moderate role to monitor such activities. These can promote the healthy and orderly development of market economy.