Investigate The Effect Of Unauthorized Disposition Contract Traded Matter

The legal validity of unauthorized disposal contracts has always been acontroversial issue in the civil law. The Article51of "contract law" firstly made aboutthe legal validity of unauthorized disposition contracts, which says, the legal validityof the contracts made by unauthorized persons and the counterparts is undeterminedbefore it is accepted by the authorized person or the counterparts get the ownership.So, if the unauthorized acts are not confirmed subsequently by the authorized or thecounterparts do not take the ownership, the contracts made by them are absence oflegal validity.‘The judicial interpretation on business contract’ made by the SupremePeople’s Court stipulates the legal validity of the contracts about unauthorizeddisposal of other people property: Even if the sellers do not have the ownership or theright of disposition, the contracts by the unauthorized and counterparts are notaffected by their defects of right on the subject matters. So there are conflicts betweenthe two Articles of law. In this work, a reasonable explanation has been presented byseparate analysis of the two different Articles: the sales contracts about theunauthorized disposals should be directly defined as valid contracts according to the‘The judicial interpretation on business contract’; while, the contracts of unauthorizeddisposals beyond the sales contracts should refer to the valid contracts under real rightexternalism mode. That is, the contract for credit made by the unauthorized personand the counterparts, and it is the ownership of the subject matter that in the state ofpending validity. What’s more, as to the possible conflicts caused by the specificapplication of the two Articles in legal practice, a narrow definition is been presented about the application range of the two Articles, with abiding to the aboveexplanations.