International Factoring Agreement

International factoring is one integrated financial tool, which provides a series of services, including maintenance of accounts, collection of receivables, guaranty of credit risk and financing for international trade. Nowadays, the competition in international trade is becoming fiercer and fiercer. Traditional letter of credit (L/C) is to be replaced by international factoring because L/C has the disadvantages of fund occupation, numerous procedures and rigescent mechanism, while international factoring can overcome these disadvantages and have the functions of financing and maintenance of accounts, which help international trade improve its safety and efficiency.International factoring, standing for the developing trend of the assignment of creditors' rights, arises from the flux of the society, guaranty system and the function of capital market It is one new modem financial tool, which has great impact on present legal systems of every country, especially civil and commercial legal systems. International factoring contract is the core and one of the most important files in the operation of international factoring, so this thesis is to discuss it from the aspect of Contract Law combined with related regulations of other countries and international treaties and conventions in order to unveil the nature of international factoring. This thesis is composed of four parts as follows:Part Ⅰ introduces fundamental theories of international factoring contract Firstly, the author introduces the definition, operation patterns and classification of international factoring, and then discusses its legal basis, which is advocated to be the assignment of creditors' rights, that is, the assignment of account receivables. Secondly, the author analyses the conditions that international factoring contract should have so that it can meet the statutory requirements and come into existence legally. In this part, the author also analyses the importanceand classification of international factoring contract. Thirdly, the author goes on the discussion of the nature of international factoring contract. Based on the comparison of three opinions, that is, the theory of abstract quasi-jus ad rem contract, the theory of causal contract of purchase and the theory of contract, the author deems the theory of causal contract of purchase the most reasonable, however, there is not the concept of cause in China's Contract Law, so the author defines its nature as one contract of purchase.Part Ⅱ focuses on the main content of international factoring contract. Firstly, the author introduces the main clauses included in this contract. Secondly the author mainly discusses the related legal issues concerning its object, that is, account receivables. Thirdly, the author analyses the legal relationship existing in this contract, that is, the rights and duties shared and shouldered by the supplier and the factor.Part Ⅲ focuses on the legal effect of international factoring contract and the conflict of rights it caused. The author introduces the internal and external effect of international factoring contract, and then analyses the conflict of rights it caused. The author also introduces three ways to deal with these conflicts and ascertain the priority right in these conflicts.Part Ⅳ focuses on the regulation of international factoring contract by Contract Law of PRC and its perfection. The author introduces related clauses stipulated in Contract Law of PRC that regulates the international factoring contract, and then puts forward his own advices on how to perfect China's legal system concerning the assignment of creditors' rights.