The Legal Risks Of Buying A Car In The Name Of Another Person And The Precautions

In order to ease urban traffic pressure and minimize the risk of environmental pollution, local governments have in succession implemented the motor-purchase restrictions to control the vehicle number, which lead to the rise of buying car in the name of another person. How to determine the nature of this kind of behavior which triggered lots of controversy in both theory and practice? This paper is the author based on practice, trying to explore the legal risk of car buying in the name of another person, as well as the varied judicial attitudes for it, in order to regulate these behaviors.This thesis, not including the introduction and conclusion, is divided into four parts:The first part: The presentation of questions. This part mainly discusses controversy in both theory and practice which triggered by the behavior of car buying in the name of another person, illustrating the defect of the legislation in this aspect. Thus, it is necessary for this paper to discuss the question.The second part: The overview of car buying in the name of another person. This part introduces the definition at first, makes the background of the generation of car buying in the name of another person to be clear, illustrates how the registrant and the virtual buyer prevent their own risks and the risks in these precautions themselves, as well as it talks about the varied judicial attitudes for whether the car buying in the name of another person is effective or not, from courts in various regions, which also lead to those paradox decisions.The third part: The analysis of legal risk. This part firstly has one by one refuted the reasons that the courts decided the contracts in which buying a car under another person’s name to be ineffective, and it concludes this kind of contracts ought to be decided to gain validity and if the contracts being decided to be ineffective it can go against the dispute resolve between the two parties.And then, it analyses the ownership of the car buying in the name of another person: 1.Whether the car ownership belongs to the virtual buyer or the other, the opinion that it should belong to the virtual buyer is confirmed by this paper for the vehicle registration is differed from the ownership registration. 2. Whether the third party can claim the acquisition in good faith according to the transfer and the registration changing by the nominal registrant. In the analysis that the vehicle acquisition in good faith is based on the public summons and trust and for vehicle ownership it has two ways to be publicized, one cannot claim the acquisition in good faith only by registration. However, if together with the delivery of the car to the third party, bona fides third party can obtain the car under the acquisition in good faith rule. 3. As for whether the creditor of the vehicle’s nominal registrant can claim his rights against this vehicle, through two cases where the writer analyzes that the happening of this debtor-creditor relationship is not based on the creditor’s reliance on this vehicle, the writer found that the acquisition in good faith for the creditor cannot be valid. 4. Whether the mortgagee of the nominal registrant, who has relied on the way of vehicle publicity, can acquire the hypothecation after registration. The paper concludes that the hypothecation can be obtained with acquisition in good faith in this situation by analyzing the actus reus of the acquisition in good faith of hypothecation.Finally, this part figures out whether the nominal registrant should take responsibilities after traffic accidents. It generalizes two cases, made the current existed judicial misunderstanding in court disclosed----car buying in the name of another person is no more borrowing car to use, in which the rule that is similar with the vehicle trade but yet non registration transfer should be applied for, thus nominal registrants should not be responsible for the accidents.The fourth part: The risk prevention. For the too many risks of car buying in the name of another person, the paper provides some notes on which ought to be paid attention in car buying in the name of another person, and the ways to reduce disputes in it as much as possible.