On Contract’s Effectiveness Of Private Lending

Private lending existed as an important means of financing since ancient times, but its development is not smooth sailing. After the founding of new China, private lending is substantially canceled and not allowed to exist. And it is considered illegal. But as one of the important means of social financing, private lending is present in any historical period of the market economy and not disappearing due of the repressive policies. In recent years, due to the rapid economic development, SMEs, family businesses and the development of rural industry’ demand on capital is becoming more intense. But it is difficult for the small scale of operation and low degree of credit protection to obtain loans from banks and other formal financial institutions. For lack of effective financial support largely from the direct impact on the development of these entities, they had fought in the private lending market, and private lending has thus become increasingly active, become a social hot topics to explore. Admittedly, for the supervision of private lending is not enough, a number of private lending-related financial crime phenomenon is very common, despite the introduction of a series of legal provisions, there are still various problems in practice, where the effect on private lending contracts, there are still many disputed areas. This paper focuses on the effectiveness of private lending contract Perspective, combined with private lending, private lending theoretical knowledge validity of the contract, contact the 2015 introduction of the "Supreme People’s Court on the trial of the case of private lending laws applicable number of issues", private lending contract conduct a comprehensive study on the validity of, and after analyzing the effectiveness of private lending contract Confirming issue, corresponding to perfect views.This article altogether is divided into four parts, and the main contents of each part are as follows:The first part is the introduction, mainly related to the situation of an overview article, including the background, significance, research status, research methods and innovation. Wherein the background tightly bound to the introduction of the latest judicial interpretation, whether it is before the introduction of the new judicial interpretation of private lending validity of contracts identified problem or induction of specific applications after the introduction of judicial interpretation, are of great significance.The second part is the private lending validity of the contract outlined in this section focuses on the effectiveness of private lending and private lending contract. Among them, the private lending private lending section introduces the concept, features, and limit illegal deposits from the public sin. Private lending validity of the contract section discusses the concept of private lending validity of the contract as well as the effectiveness of the legislation on private lending contract recognized standards, criteria are summarized in the contract regarding private lending legislation invalid provisions.The third part is the main problem of private lending validity of contracts identified in existence. This part of the legislative and judicial perspectives expand on the current validity of contracts identified in private lending problems are summarized, and after each of the issues raised are specific reasons and analysis of specific performance problems. Such as the proposed "law too fragmented, there is a conflict between the content," this issue in terms of legislation, in the following on the introduction of legal norms on private loans have different levels of effectiveness. But there are among the requirements in some areas of conflict, and proposed inter-enterprise and enterprise effectiveness of the Loan Contract issues.The fourth part is the main issue recommendations for improving the private lending validity of the contract Confirming raised. The paper is part of the third part of the problem-one correspondence, and improve recommendations in terms of legislative and judicial aspects are intended to prevent state when judging the effectiveness of private lending validity of the contract is not clear, the effect is not identified on the basis of clear, co different sentence and other issues, but also hope in the future development of private lending can be more standardized..