The Abstraction Of Bill And Perfection Of Bills Legislation

The theory abstraction of bill is the foundation of the negotiable instrument law of themodern times, which is widely accepted by the international legislations. It aims to promotebill’s circulation and maintain the legal rights of the parties. With the historical, comparativeand theoretical analysis, the article gives a detailed discussion about the theory of abstractionof bill, introduces and analyzes the status quo of the legislation of abstraction of bill in theworld and then offers a constructive solution to perfect negotiable instrument law of China.Proposed by German jurist Savigny and gradually accepted by the world, the theory ofabstraction of bill meets the urgent need of promoting competition in the credit marke andeconomic development. The abstraction of bill means once the bill possesses the terms of billlaw, the right of it will exist independently, behavior depending on how it takes place couldbe ignored. The theory of abstraction of bill reflects that the relations of negotiable instrumentand its basic relations are independent of each other. Its protecting system is the rule of billdefense limit. The theory mainly includes absolute and relative abstraction of bills.The legislation of abstraction of bill is an international practice. The establishment of theprinciple provides the most solid foundation for the circulation of bills. However, the currentlegislation of abstraction of bill in China is fuzzy and the theory and practice are oftencontradictory, which will undoubtedly hinder the use and circulation of bills and ultimatelyaffect China’s economic development. With the rapid international economic integrationprocess, the use of bill in international trade will inevitably become an important issue. As theoriginal negotiable instrument law in China limited the circulation of bills and had a negativeimpact on the economy, to protect the legitimate interests of the billholders and free flow ofthe bills, the legislation on the instrument must follow the general rules of international trade,establish the fundamental principle of the abstraction of bill, amend the existing contradictionin the present negotiable Instrument Law and learn from the advanced experience of othercountries to improve our voucher system and promote economic prosperity in China.