The Obligation Of Information Disclosure In P2P On-line Loan Contracts

These years, Internet has been developing greatly. A verity of new forms of finance has come into being on the Internet, including the P2P on-line lending. The modern concept on P2P lending was rooted in the idea of small amount loans of Prof. Mohammed Yunus. The first Internet based P2P lending dates back to 2005 when Zopa was first founded in UK.P2P on-line lending came to China in 2007 and the first P2P on-line lending platform is Ppdai.com. Then, P2P on-line lending develops fast in China, lots of platforms are founded. By studying the foreign models for operating the P2P on-line lending platforms and the situation in nowadays China, the platforms in China have mainly developed three models. The first model, which is the traditional one, consists the loaner, loanee and the platform. This is the model which precisely meet the spirit of P2P on-line lending and can take full advantages of the favorable facts in P2P on-line lending.P2P on-line loan contract is a kind of loan contracts. However, it has its own features. Owing to the asymmetry of information, the honest and trustworthy principle in the contract law and the features of P2P on-line lending, the loanee has to practice the obligation of information disclosure. Such obligation exists both in the process of conclusion and performance of the P2P on-line lending contract. It’s a pre-contractual obligation as well as a subsidiary obligation with which the loanee has to disclose information compulsively.There is a difference between what should be disclosed during the conclusion of the contract and the performance of the contract. In the process of conclusion, there are mainly three kinds of information which should be disclosed:basic personal information; personal information on properties and personal credit reports or other documents from any other third parties. Meanwhile, while performing the contract, the loanee has to disclose any important information relating to his performance of the contract. If the loanee fails to fulfill his obligation, he has to bear the liability for negligence in contracting and the liability for breaching a contract during the conclusion time and performance time respectively.The P2P on-line lending platform, acts as the broker of the P2P on-line lending contract, can help to set standards for entrants (potential loaners and loanees) and verify the information disclosed by the loanees. By the P2P on-line lending platform, the P2P on-line lending can be worked out successfully and the contradiction between information disclosure and privacy protection can be reduced to some extent. At the same time, when the loanee refuses to disclose or any damages occurs, the platform can disclose the information of the loanee and help the loaner seek for compensations.