Research On The Judicial Practice Of Domestic Factoring Contract

Factoring is the behavior when a factor buys the claims from others and is responsible for recovering the claims in order to get profit.Factors take advantage of the enterprise's account receivables and turn them into capital.It makes it a sharp weapon to get financing.Nowadays,China has become the biggest factoring market in the whole world,and the government of China also issued the beneficial policies to develop account receivable financing.Under this condition,factoring entered into an important strategic developing period.Meanwhile,not only the promising future we see of it,but also the fact that,because of the later development of factoring business in China,we are lack of legal ground to standardize the factoring contract.People don't understand the nature of factoring contract,and factors have poor awareness or capacity of risk prevention.All these problems lead to the legal disputes created by the factoring practice.Factoring is a pretty new type of case with complicated legal relations,and there are quite a lot disputes and divergences in the juridical practice during the process of these cases.It makes it very important to analyze the juridical practice of China related to factoring contracts,find out the problems of factoring contracting,such as undefined cause of action,unclear jurisdiction,unknown litigant status of the party involved,fake deal,and ambiguous regulations of assignment of debt.In this paper,I mainly selected 3 basic problems in its juridical practice to study on----the cause of action,the litigant status of the party involved and jurisdiction.In order to study the problems of juridical practice regarding to factoring contract,we need to understand factoring and factoring contract.In the first part of this paper,by introducing the definition of factoring,the development of factoring,and the domestic definition and its classification,I put forward with the legal relations of factoring contract and led to the conclusion that the legal essence of factoring is factoring contract.Based on this idea,I analyzed the features of the legal relations of the factoring contract,the key components,the rights and obligations of the party involved in the contract.In the second place,we need to understand the actuality of juristic practice of domestic factoring contract to better analyze this problem.Therefore the second part of this paper is the current situation of the juristic practice.From the comparison of two classical cases,till the analysis to all the collected cases where I analyzed from several angles,like numbers,cause of case,party involved,jurisdiction,and application of law,and so on.Thirdly,also the core of this paper,I analyzed the most controversial problems like I mentioned before,the cause of case,the litigation status of parties involved,and the jurisdiction.Finally,facing with the problem of the development of domestic factoring and the conflict of factoring contract in judicial practice,the last part of the article puts forward some general countermeasures.The value of this paper is to understand the legal relations of factoring contract better,bring forward the existing disputes in juridical practice,provide useful suggestions for a standard juridical trial practice of factoring contract,and to establish the foundation of the legal norms for factoring contract legal relations.