On The Right Disposition

Unauthorized Disposition Rule has evoked much controversy since Contract Law was enacted. The author attempts to analyse that the contract of sale, by itself, has an effect of obligation and can also directly produce the passing of property. An analysis of the different effects of Unauthorized Disposition should be carried out on the basis of distinction between the effect of obligation and the effect of change of real right. The right of disposal should not affect the effect of the obligation.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. On the contrary, article 51 is unfavorable for the protection of the third party and deal safety. The theoretical power of Unauthorized Disposition lies in its close association with the illegal profits, bona fide gain, security for defects of right ect. There exists contradiction between the system of civil law and article 51.