A Study On The Assignment Of Receivables Of Factoring In China

China introduced the business factoring in the 1980 s, this business has achieved great development. The factoring business,in a modern sense, serves as a financial service, which is including sales management,credit risk guarantee, trade financing and other multiple functions. Factoring has played an indispensible role in modern financial and trade areas.This paper attempts at first to interpret the factoring concept,which is combined with theory and laws at home and abroad.And to give a short introduction of factoring business and its development in China.Then discussions on the domestic and foreign factoring business will be introduced.At last,four claims about factoring business will be stated, and this paper points out that the actual nature of factoring is the assignment of creditor's right.The second part discusses the transferability of receivables. The legal basic of business factoring lies in the assignment of creditor's right, so first of all we must make it clear that which one can be taken as the factoring business objects. This paper points out that the Chinese General Rule of the Civil and Contract Law has only imposed limitation to some special receivables,and there is a big controversy about future receivables.This paper holds that we should affirm the transferability of future receivables by drawing lessons from forgein laws and international conventions.Then the second part focuses on the Anti-assignment Clauses,based on historical and comparative considerations.This paper points out the three claims of Anti-assignment Clauses, which are the effective theory, the ineffective theory and the confrontation theory. Then the provisions about Anti-assignment Clauses in the international conventions will be thoroughly introduced. Finally the Anti-assignment Clauses in Chinese law will be described and this paper argues that the Anti-assignment Clauses have greatly hindered the fluidity of receivables and they should be refuted.In the third part based on the perspective of transfer notice, the effect of receivable for the debtor will be analyzed.At first the three legislation models of transfer notice will be comparatively investigated, and concludes that notice theory is more proper than liberalism and consensus theory. Therefore, based on the legislation practice of notice theory, the subject of notice and several issues that exist in Chinese factoring business areas will be discussed.The fourth part discusses the responsibility scope of supplier,factoring party and debtor, and emphatically introduces the right of defense and the right of set-off of the debtor during the transfer of receivables.In the fifth part based on multiple assignments,the effect of the transfer of receivables to the third party will be analyzed. First of all, this part will compare the laws in different countries. Since Contract Law of China has no clear provisions for the priority of transfer, this paper points out that China can gradually build up the transfer priority registration system and simultaneously proceed with modifications of Contract Law.The last part is the conclusion.