On The Effect Of Guaranteed Clause In Entrusted Financial Contract

Entrusted investment as a new financial product, with China economic development and per capita disposable income increases, it has become an important way of investment in the capital market operation China. Concomitantly, disputes also increased continuously, of which the most common financial contract dispute is related to the terms of the contract of guarantee. Report of commissioned financing contract guarantee clause contains features because of its guarantee minimum income, thereby reducing the financial risk, favored by investors. But once trust financing business failure, the effectiveness of such factors, as a result of such complexity difficile contract disputes with the main body of the base clause, increased the difficulty of dealing with disputes. In law, China’s current laws and regulations is to entrust the business managing money matters financial institutions to define the qualification requirements, and non financial institutions and individuals engaged in trust management business is belong to the blank area does not expressly; in practice, the trial of such cases, courts often serves as a starting point to the legal nature of entrust financial contract the allocation of rights and obligations of the parties to consider differences thus appeared the verdict. Because the law is lack of a unified, case logic is not the same, different codefendant phenomenon often appears in the handling of cases, this greatly affected the judicial authority. This paper aims at the effect of fixed profit guarantee articles research on commissioned financing contract in question, to investigate the case of logic and its inadequacy, have promote study hopes to related problems.