On The Validity Of The Loan Contracts Between Corporations

Lending money between enterprises is a common economic phenomenon, but in quite a long time our country’s relevant financial regulations and judicial interpretations deny to recognize its legitimacy. Now it is necessary to reconsider the effectiveness of the loan contracts between enterprises in new financial situation.My basic standpoint is that besides illegal fundraising. we should admit the effectiveness of loan contracts between corporations. The article is divided into four chapters. The first chapter gives general introduction of this kind of contract, and summarizes the definition, characteristics and classifications of these contracts, which properly prepared for the following content. The second chapter summarizes the development of such contracts, from which we can find out that the history of the effectiveness of the loan contracts between enterprises is closely related to the changes of our country economic system. The third chapter analyses the effectiveness of the loan contracts between corporations from social and economic perspectives. This sort of contract is based on the market system. The contracts should be legally effective, since planned economic system is eliminated, the lagging financial system is gradually replaced by modern financial system and the financial environment of the private enterprises and small and medium-sized enterprises is terrible. The fourth chapter we discuss the effectiveness of the loan contracts between enterprises in legal aspect. The rectification of the contract law regulates the effectiveness of these contracts shouldn’t be illegalized even if violating national plans. These contracts conform with the autonomy of will and never violate mandatory laws. Besides, they do not infringe public interest. Therefore, it is necessary to thoroughly admit the loan contracts between enterprises.