Research On The Validity Of Minimum Guaranteed Terms Of Trust Management Contract

The entrusted wealth management contract with guaranteed terms is in the ascendant in China's capital market.However,the current judicial practice has a mixed understanding of the effectiveness of the bottom-guarantee terms in the entrusted wealth management contract,the guarantee conditions,the effectiveness of the contract,and the ineffective consequences.It is difficult to meet the economic and social development needs.There is an urgent need for academic collation of this issue.The entrusted financial management contract essentially consists of the basic relationship of the entrustment contract and various forms of entrustment such as direct agency,trust,anonymous partnership,etc.The fixed asset management contract does not belong to the entrusted financial management contract and should not be included in the scope of this article.The essence of the guarantee clause is the distribution of risks between the parties in the financial management activities.It can be divided into three types:minimum return,no loss,and loss-filling.This article believes that,except for commercial banks' personal finance plans and the insurance company's universal insurance business,the bottom-up provisions in financial entrustment financing contracts are ineffective because of damaging public interests,and there are avoidance actions or links in the guarantee clauses in private entrustment financing contracts.When the hypocrisy is invalid,the rest should respect the party's autonomy.Whether the partial invalidation of contract clauses will affect the overall validity of the contract lies in determining whether the purpose of the legal actions pursued by the parties can be realized in a fair and balanced state of interests when maintaining the validity of the part of legal actions that are not defiled by the invalid part..The term of guarantees often constitutes the basis for the transaction of entrusted financial contracts.The invalidity of the guaranteed terms will lead to invalidation of the contract.In the case of inability to judge,all invalid principles should be adopted.If the terms of the guarantee are invalid,according to whether the contract is valid or not,the legal effect is quite different.When the contract is valid,general contractual rules of contract can be applied for processing.In the event that the contract is invalid,it involves the issue of unjust enrichment return method.If the subject matter of the contract is money,the money can be returned.In the case that the subject matter of the contract is securities,if the original cannot be returned,it should be The price refund obligation occurs when the price is calculated.If there is profit,different methods of distribution should be adopted according to the trustee's good intentions.In addition,the malicious trustee shall bear the liability for damages to compensate for the positive and negative losses of the principal.