On The Conflict Of Ownership And The Balance Of Interests Of Third Parties

The paper begins with the concept of retention of title, and expounds its nature and system value. In the transactions which retention of title, the subject matter of the ownership status is not consistent with its appearance, coupled with the relativity of the terms of retention of title and the absence of its publicity system, the interests of buyers and sellers can easily be conflicted with the interests of bona fide third party.So this paper intends to discuss how to balance the rights and interests conflicts between the third party and the buyers and sellers in different circumstances.When the seller resell the subject matter, the right of disposition should be affirmed, the third party obtain ownership of the subject matter which against buyer’s expecting right when actually holds it and is in good faith. When the seller pledge the subject matter, the order of retention of title and chattel mortgage should be distinguished to discuss. As chattel mortgage happened earlier than retention of title sale, the unregistered mortgage shouldn’t against buyer which is in good faith, In contrast, it should be judged by the publicity system of retention of title.While the buyer have no right to dispose the subject matter, the validity of contract and transference should be judged with property distinguishing principle. The third party could acquired in good faith. The encumbrances created by buyer could be divided into mortgage and pledge. In both cases, the interests of the seller should be given priority.This paper is divided into three cases to discuss that the conflicts raised by third parties’ behavior with both seller and buyer of retention of title. Creditors of both parties couldn’t apply for enforcement on subject matter. Possession protection of subject matter has to be exercised by the buyer as it is infringed by the third party. The seller and buyer only have a joint claim of remedy, the distribution of compensation should be determined by the parties in accordance with the actual implementation of the contract. As a lien is put on the subject matter, the interests of lienee shouldn’t be blindly protected first, while combining with publicity system of retention of title to consider the relationship between lienee and owner of subject matter.In order to better protect the interests of seller and buyer and third party, fully respect the wishes of both parties. We should adopt a discriminatory system of publicity of retention of title on the basis of the legislation on the outside and to distinguish between consumer and non-consumer goods, stock and non-stock, special movable and movable property in general.