A Study On The Validity Of Unauthorized Disposition Contract

Unauthorized deposition means someone deposits others’ asset without right ofdeposition.both article51in contract law and article3in judicial interpretation overcontract of sale.act of debt and act of deposition should be distinguished whenconcerning the specific implication of deposition in these articles seemedcontradictory.act of debt is the legal act that someone bears the legal duty of acting orno acting.act of deposition means the legal act starting or changing the right. Thedistinguishing of act of debt and act of deposition is the existence of the objectivereality and every conduct of sale aiming at changing the right in rem involves act ofdebt and act of deposition.the essential distinguish between act of debt and act ofdeposition is that they depend on different legal foundation for they are different onthe effect. After the entry into force of the act of deposition, then the behavior will bepunished in a different legal basis and decide whether to take effect, rather thanunder the effect of act of deposition. Through analyzing the Article15of "PropertyLaw", act of debt and act of deposition have been distinguished in our nation.Through analyzing invalid Unauthorized deposition contact theory, holdingUnauthorized deposition contact invalid is too harsh for there are other articles toredeem though the right of original oblige will be infringed. Though effectundetermined theory seems reasonable, it can’t balance the interest of parties andbreach the relativity of conduct. And both the theories breach the distinguishingprinciple recognized in our nation. Through contrasting the Unauthorized depositioncontact under different mode of right in rem changing, the effect of Unauthorizeddeposition contact relates to the distinguishing of act of debt and act of deposition butnot the mode of right in rem changing.Unauthorized deposition contact should bevalid under the legislative mode of distinguishing act of debt and act of depositionwhich could fit the party authority principle and protect the assets and the stability ofsale.The legal relationship of Unauthorized deposition contact refers to not only the relationship between Unauthorized deposition contact and bona fides acquisitioninstitution, but the duty bearing among three parties. The precondition of linkingUnauthorized deposition contact and bona fides acquisition institution is to admittingthe juristic act of right in rem theory and then valid Unauthorized deposition contactacting as one essential of bona fides acquisition institution. When Unauthorizeddeposition contact is held valid, the transferee could be protected by the liabilities forbreach of contract or the original obliges could protect themselves through the validconduct on the view of bearing of liability.