Rationality Research Of Fluidity Contract In China

The fluidity contract(FC)refers to the agreement between the creditors and debtors that according to the legal procedure,if the debtor can't liquidate when the liquidation period expires,the creditors will have the title of the collateral in impawn and mortgage of real estate and movable property.FC are prohibited in most countries throughout the world,especially in those civil law countries,and China is influenced profoundly.Both Chinese Property Law and Guarantee Law do not allow FC.However,many scholars begin to question this.And it is a tendency to ban FC,which is demonstrated by the change of attitudes towards FC and their legislations.According to the author,it is necessary to ban FC in China.The concepts and characteristics of FC are introduced;present conditions of Chinese legislation are discussed and compared with foreign countries;reflecting through different perspectives including basic principles,theories of law,market economy and so on,the necessity and feasibility of FC is discussed.Banning of FC may bring many problems.The FC system is constructed by imitating present laws and regulations from the perspectives of different parties,which exerts the advantages of FC while maintains their interests reasonably.