The China’s Provisions On The Property Disposition System

China’s "Contract Law" Article51is about the provisions on the property disposition system, namely:"the person who has no right to dispose the property of others’, by getting the confirmation or signing a contract with the right holder, the contract is effective." However, how to understand the meaning of the terms, there has been a lot of different opinions in the theoretical field. This dispute also has a great impact on the practical field. German civil law distinguishes debit right and ownership right as well as the independent or unreasonable theory. Based on the different recognized points, the theory of validity, invalidity and indeterminate validity exist. Before "Property Law" issued, the property rights behavior theory was not recognized in our traditional civil law. Therefore, the explanation on the effectiveness of property disposition contract due to the real right behavior theory was not successful. Until2007, the principle to keep causes and consequences apart for the change of property right was established in the "Property Law" Article15, which showed the adoption of the property right behavior theory. Various points of view on the interpretation of Article51from the Contract Law are totally different and cannot be unified. Things become more complicated till May2012, because the Supreme People’s Court issued Article3in "the Supreme People’s Court give interpretation associated with the proper law to deal with the contract in dispute" clearly adopt the view of the property disposition, namely:" If the interested party propose that the contract made before the seller has ownership or discretion of the object is invalid, the people’s court would not support. And the seller who fails to transfer the ownership or discretion on the object should release the contract or take responsibility for the required compensation, then the people’s court would support. This proposal obviously conflict with Article51of Contract Law. That’s why the common recognition and single standard regulation for the property disposition system is really hot. As a lawyer, I believe that the respects and enforcement to the current law are the basic requirements. No matter how inadequate the Article51in Contract Law is, the legal workers should make interpretation and application within the framework of our current legal system if the legislature does not make other provisions, especially in practice. Therefore, this paper will finally affirm the theory of indeterminate validity. At the same time, it focuses on the property disposition system in our current "Contract Law" which related to the validity of the signed contract by the owner. Via the analysis and comparison on the typical theory of the "property disposition" between the domestic and foreign countries, the pros and cons of property disposition view are clear. How to link the system of property disposition which is provided in Article51of the Contract Law and bona fide acquisition in our current legal system will also be explained. How to carry out existing property disposition system while the tenant disposes the common property without the agreement of other co-owners and the mortgager disposes the collateral, rental properties without the agreement of mortgagee as well as some other circumstances; The relationship and coordination between the property disposition system with the seller’s right warranty obligations and the contract invalidation with abolishment; all of these will be mentioned too. Particularly, the appearance of requirements for "property disposition system" mentioned in "the Supreme People’s Court give interpretation associated with the proper law to deal with the contract in dispute" issued in May2012is a new case. It will certainly have a significant impact on China’s current property disposition system which is based on the valid theory. This article will present and deep analysis on theoretical basis of new requirements for property disposition, the advantages and disadvantages as well as how to coordinate with the existing system of property disposition system.