Study On Good Faith Of Bona Fide Acquisition

The Article 106 of Property Law defines Bona Fide Acquisition which includes three requisite elements:(1) good faith while transferring the title;(2) reasonable price;(3) the real estate has been registered and the movable property has been delivered. Since the validation of Property Law in 2007, the Bona Fide Acquisition played a very important rule, it promoted the economic development and protected legal rights of third party acting in good faith, but the Property Law and the Judicial Interpretation of Property Law do not give a full understanding of good faith. It brings difficulties on law application without a unified standard: Judges have wide discretion in deciding which will make few unreasonable judgements. So it is necessary to give a study on good faith of Bona Fide Acquisition, find an object manner which is easy and measureable, lose burden on Judicial Branch, ensuring equity and justice.This thesis will talk about this question through the following steps: Firstly, discuss the related cases in China, study the standards from different levels of judges identifying good faith, study the standards from the perspective of Chinese laws and theories, discuss if this standard is clear and easy to be applied, compare if these two standards are in uniform; secondly, borrow advantages form laws abroad to perfect Chinese Property Law, give some suggestions on the shortcomings.According to the study, the interpretation and definition on good faith should be as the following steps: First, Negative Object Theory can do better on complying with the function of Bona Fide Acquisition than Positive Object Theory. Second, differentiate the different situations on real estate and movable property. Third, Object Good Faith is more efficient than Subject Good Faith. Fourth, the subject of good faith should be a person with full capacity for civil conduct, or person with limited capacity for civil conduct engaging in civil activities appropriate to his age and intellect without legal representative; on the occasion of principal-agent, the principal should be in good faith. Fifth, the element of reasonable price should not be listed separately, it should be considered as part of discussing the scope of aggravated negligence.With the improvement of the good faith standard, Bona Fide Acquisition can play a better rule in Property Law and make the realization of improving trade, protecting the third party with good faith come true.