Research On The Recall Right In The Retention Of Title System In China

The proportion of indirect financing is too high in current Chinese economy, which not only increased the bank’s financial risk, but also makes corporate financing costs are too high. It is not conducive to long-term development of enterprises.With the improvement of the purchasing power of Chinese consumers, the consumer credit industry is also advancing rapidly. The retention of title system is a outcome of market economy development in certain stage. The system not only solves guarantee needs of sellers but also eases the financing pressure of buyers.The retention of title system is flexible in solving many practical problems but it also causes new problems. The supreme People’s court issued Judicial Interpretation of the Contract for Sales in 2012 which made up for the bank of the retention of title system. The paper attempts to solve the legal application of the retention of title.The recall right is the core part of the retention of title system,which plays a crucial role. It not only protects the legal rights and interests of buyers, but also could hurt the interests of sellers. How to exercise the recall right, the exercise conditions of the recall right, the scope of The scope, the program of the recall right and the risk burden, which are objects of the paper.The first chapter is an overview with the retention of title system. It introduces the concept and nature of the retention of title which determines the concept and nature of the recall right. The retention of title Should be viewed from the internal essence and external form. The internal essence is a guarantee of title.while from the external form, it is a transfer of ownership with suspended conditions. The seller exercises the recall right in order to get compensated.The second chapter solved the following problems. First, How to exercises the recall right in the state of being bankrupt. The buyer’s bankruptcy case is different from the case of the seller’s bankruptcy. Second, when the third acquired in good faith, could the buyer recall subject-matter. Unlike, in the field of consumer and commercial areas. Third, The buyer spent a lot of money on the exercise of the recall right. Fourth, How much is the cope of the recall right. Fifth, Who will bear the risk.The third chapter introduced the recall right’s relationship with other rights. A good friend of the recall right, the right to expect, the right to redemption are. Every right has its own characteristics. Sometimes a conflict between the rights will break out. The paper is trying to find a balance.