The Folk Loan Contract Effectiveness Researsh

Look from the legal relation of classification, the folk lending belongs to the loancontract relationship. Contract effectiveness is the core of contractual relationship, so the folkloan contract effectiveness review is the chief problem of private lending. Attitude of strictlimits on lending in our country, is in the law on borrowing subject qualification of excessiverestrictions and borrowing mandatory regulation, even for informal lending the parties shallbe investigated for criminal responsibility according to law. On this basis, the effectiveness ofprivate lending in the judicial practice of conservative, resulting in a large number of shouldhave effective folk loan contract is invalid. Practice has proved, the folk lending excessive isregarded as invalid contract, makes the social financing cost and waste of social wealth. Itobviously is not in conformity with the contract effectiveness should respect the partiesintention, contrary to the modern contract law to encourage trade and reduce invalid contractis the basic value orientation. For this reason, how to base on the state intervention in the folkloan contract effectiveness judgment and the organic unity of freedom and maintain financialorder security, stability, protect the lawful rights and interests of the parties, lending should bethe height of the civil law educational world attention.This paper is divided into six parts, the main content of each part are as follows:The first part: the overview of folk lending, and informal lending contract effectiveness.The second part: the folk loan contract effectiveness of existing rules and elucidated.The third part: analysis of the effectiveness of the borrowing between enterprises. Firstof all, because the formal financial institutions such as Banks for credit of small andmedium-sized private enterprises "discrimination," enterprise to alleviate the financial strain,turn to private lending. Respect the autonomy in operation of the enterprise, the legitimaterights and interests protection enterprises, promote the prosperity of the economy, shouldadmit lending between enterprises and give its legal effect. Second, national supervision andmanagement of lending between enterprises should be cautious, can’t help maintain stablefinancial order to arbitrary are involved in the production and business operation activities ofenterprise, intervention in the assets of the liberty.The fourth part: the analysis of the effectiveness of the folk lending usury. According tothe law of subjective theory of value, considering all kinds of risk to determine interest rates,even if is higher than that such loans to Banks in the same period of the contract shall be effective; However, in order to seek exorbitant profits subjectively obtain higher than themarket price of interest, damage to legitimate property rights, by the credit harm socialstability of the contract shall be invalid.The fifth part: analysis of illegal fund-raising folk loan contract effectiveness. Privateborrowing contract involved in illegal fund-raising and other criminal offence, shall be strictlyin accordance with the provisions of the criminal law shall be investigated for the offender’scriminal responsibility; The effectiveness of the contract shall be in accordance with theprovisions of the civil law and contract law, the purpose of comprehensive mandatory law,correctly measure the interests behind conflict of laws to determine the effectiveness of thecontract.The sixth part: to summarize the full text.