Explore On The Risk Allocation Of Conditional Sale

The intention of Article134of "Contract law of the People’sRepublic of China" stipulates conditional sale is to guarantee the Seller’sclaims to have received payment.Beacause of conditional sale, the Sellerdare to deliver the subject matter to the Buyer and the Buyer will geteffective possession of it before the Buyer defray all the payment. In thisway, the conditional sale will promote the successful conclusion ofbusiness. But the system stipulated is relatively general and rough, sothere are always several differences in the application. Investigating riskallocation in conditional sale is an important condition of practicingconditional sale,I will make use of legal hermeneutic method, basing onthe existing legal provisions of our country and social practice, withdifferent legislative modes, to analysis the rules of risk allocation inconditional sale.This article will be divided into three parts for comprehensiveanalyzing and discussing the problems of risk allocation in conditionalsale.In the first part, I have discussed the risk and risk allocation in trading,the working legislation stipulate many types of risk, such as life risk,market risk; different types of risk, different types of risk allocation.Basing on the discussion of the definition of risk in trading, with differentcountries‘risk allocation modes, I agree that risk in trading means pricerisk, risk allocation modes including two types-Owner’s risk principle andDelivery principle,In the second part, I have discussed different countries’ risk allocationin conditional sale. With different countries’ conditional sale rules and themodes of real rights alteration listed, I have analyzed and discussed the influential factors of conditional sale. Through comparing and analyzing, Ithink the subject matter of conditional sale in most countries is limited tomovable property, a few countries also acknowledge the real estate andproperty rights can be applied as well. As the result of different conditionalsale rules listed,, combining with different modes of real rights alteration,trading risk allocation in conditional sale occurs a certain change,. Forexample, Italy stipulates different modes of risk allocation in generaltrading and conditional sale.In the third part, I have discussed China’s risk allocation rules inconditional sale. Through analyzing Article134of " Contract law",combining with the scholars’ discussions as well as other countries ‘rules,I have draw an conclusion that the mode of general risk allocation inconditional sale is Delivery principle, but in special cases, such as thebuyer’s default, the risk allocation will be changed.Through researching the risk allocation in conditional sale, I hope tomake our country’s conditional sale perfect and give full play to its valuein trading.