Study On Suitability Of Parties In Factoring Contracts

Domestic factoring contract disputes frequently,and trial practice of courts at all levels of the factoring contract litigation is facing many problems,the trial standards are more confusing.Courts at all levels to prosecute the seller and the buyer of the basic contract at the same time the seller and the buyer can hear the case,the seller or the buyer alone to prosecute the other party litigation status and how to arrange the factoring alone there are different ways to deal with such issues as whether the seller or the buyer claims to pay off the factoring financing and can sue the other party.The courts in some areas of our country have issued relevant judgment guidance,but the nature of factoring is still in dispute,both in theory and in practice.Many Chinese scholars study international factoring from the perspective of substantive law,but lack the response to the procedural law of domestic factoring contract disputes.In this paper,the use of practical inspection,case study,statistical analysis,comparison and theory with the actual method to demonstrate the factoring contract litigants in the appropriate case of the problem,with a view to clarify the nature of the factoring contract business,legal relationship and litigation form of the debate,standardize the uniform factoring contract litigation parties to determine the appropriate standard,and promote the judicial rule of such litigation unity is beneficial.There are forty thousand words in the text,which are divided into five parts :The first part: the realistic dilemma of determing the eligible parties in the factoring contract.At present,the determination of the litigants suitability in factoring contract is in the awkward state of legislative vacancy and different local guidance opinions are not uniform.Through statistical analysis of practical cases,It is found that there are some problems such as the inconsistency of the nature of factoring contract,the criterion of the partys suitability,and the different attitude to the joinder of factoring contract litigation when the courts of all levels try the factoring contract disputes in our country,Its a mess.The second part : the legal nature of factoring contract.At present,there are many theories about the nature of factoring law,such as principal-agent theory,creditors rights pledge,creditors rights assignment guarantee,payment subrogation theory,creditors rights transfer theory,etc.Through the comparative analysis of each theory and the operation of factoring,the rights and obligations of the parties involved in the factoring contract,thefunction of factoring and the convention on international factoring,the legal nature of the factoring contract is defined as a comprehensive financial service with the assignment of creditors rights as the core.The third part: the internal relationship among the subjects of factoring contract is complicated.The contract status of the buyer who has not entered the factoring contract relationship because of the dispute of notice subject in the covert non-recourse factoring contract is not clear;in the open non-recourse factoring contract,the seller who has withdrawn from the legal relationship of the factoring contract has re-entered the factoring contract relationship because of the commercial dispute,and the relationship of the main body is complicated.In open recourse factoring contract,the seller and the buyer have no real joint obligation to the factor of the factoring,and it is difficult to determine the appropriate party.The fourth part : the determination of the parties qualification in a single action.Covert recourse factoring contract and open non-recourse factoring contract are a single action in the general case.If the factoring is the plaintiff,the seller is the defendant.The buyer is not required to participate in the litigation without any dispute over the underlying contract;it can append the buyer to the third party without independent claim,which is related to the basic contract dispute.The effectiveness of the notice also affects the determination of the appropriate party.If the notice of factoring,the beginning of the litigation before the creditors rights and the notice in the proceedings are valid,the hidden non-recourse factoring contract litigation will be changed to open recourse factoring contract litigation.On the contrary,it has nothing to do with the buyer.In the open non-recourse factoring contract litigation,if there is no negotiation dispute,the factoring is the competent plaintiff,the buyer is the competent defendant,the seller need not participate in the litigation;commercial disputes arise,the factoring is the appropriate plaintiff,the buyer is the appropriate defendant,and the seller as the third party without independent claim to participate in the proceedings.The fifth part : the determination of the litigants eligibility in the litigation of the open recourse factoring contract.Proceeding from the unreal joint legal relationship of open recourse factoring,it is found that the litigation form is similar to the necessary joint action.In the form of litigation similar to the necessary joint action,it is determined that the buyer and the seller can become a suitable co-defendant in the same suit;if the factoring only sued the buyer or the seller alone,the other partys litigation status is the third party withoutindependent claim;the failure of the factoring business to sue the buyer or the seller for a full settlement of the case may again sue the other party,which does not fall within the scope of the objective scope of the res judicata;the need to avoid double compensation should be reflected in the implementation process.