The Conditions For Effective Inter-enterprise Lending Contract

For a long time,there had being many negative factors in the borrowing between enterprises,such as interest rate instability,lacking of special management system and it is difficult to regulate the source and flow of funds,etc.It has caused more adverse effects on the financial market,so the effectiveness of the loan contract between enterprises was once excluded from the law.However,the development of enterprises need to broaden the financing channels to ease the pressure of capital production and management,which makes the practice of enterprise lending disputes continue to show an upward trend,the effectiveness of the problem that need to be resolved.Fortunately,the Supreme People's Court promulgated the "Provisions on Several Issues Concerning the Application of Law in the Trial of Civil Lending Cases",which incorporated enterprises into the main categories of private lending and formally recognized the effectiveness of borrowing contracts between enterprises.Although the liberalization of the contract broadens the channels of corporate finance and find a new breakthrough for the financing of enterprises,but the release is not laissez-faire.The provision takes into account the prospects for the development of financial markets,while recognizing its effectiveness and limiting the funds can to be used for the production and operation of enterprises.The borrowing contract between the enterprises belong to the scope of the contract law,the validity of which is to exclude the general provisions of the Contract Law that are not valid for the contract,but also does not violate the relevant provisions of the judicial interpretation of the effectiveness of the loan contract.The implementation of the "General Principles of Civil Law" in the civil law acts effective conditions.Therefore,the above-mentioned,constitute the inter-firm loan contract three effective conditions.Firstly,the main body of borrowing has civil capacity.Secondly,the meaning of both sides of the loan that is true.Thirdly,the contents of the loan contract are legal.It does not violate the mandatory provisions of laws andadministrative regulations and does not violate the public order and the judicial interpretation of the special provisions on the funds.Based on the above three effective conditions,this paper chooses the case of Zhejiang Higher People's Court,the case of loan dispute between Wenzhou High-tech Zone Hai Rong Private Capital Management Co.,Ltd.and Xinjiang Deyuan Bioengineering Co.,Ltd.,to analyze and discuss the effective loan contract between enterprises of the recognition conditions.