Research On Legal Issues In The Trial Of Domestic Factoring Contract Disputes

With the development of the market economy,the credit sales model has become a payment method generally accepted by both parties.This business model also makes the accounts receivable occupy an increasing proportion in the assets of enterprises and become one of the main barriers for a company to increase cash.As an important part of supply chain finance,factoring has received more and more attention.At present,the general development of factoring business has shown a good momentum.Banks and factoring companies have factoring business,which effectively alleviates the problem of “financing difficulties” for small and medium-sized enterprises,especially those that lack quality assets to meet the pledge requirements.China's factoring business has developed rapidly.However,due to the relative lag of legislation and the inconsistent interpretation and application of the law,there are huge differences in the refereeing scales of factoring contract disputes.Therefore,it is particularly necessary and urgent to strengthen the research on such cases.This paper attempts to analyze the macro data of the case and analyze the micro-legal application,systematically study the legal issues of China's factoring contract disputes,analyze the causes of the problems and the focus of disputes as well,explore the solution path,and propose a perfect plan.Firstly,through the systematic review of the cases of factoring contract disputes published by the China Judgments Online,the basic situation and main features of the factoring contract dispute cases are analyzed.Also,the tendency of the courts to deal with the contractual disputes in the judicial practice and the main factors considered provide basic materials for the research of this topic.Secondly,the article analyzes the difficulties in the trial of current factoring contract disputes.The research shows that there still exist widespread disagreements about procedural issues when the court handles the case involving disputes in the contract,the jurisdiction of the case,the determination of the jurisdiction,and the litigant status of the parties.At the same time,substantive issues such as accounts receivable transfers,creditor rights transfer notices,and debt settlements are even more inconsistent.Thirdly,the article analyzes that the main reasons for the above difficulties are as follows: the inconsistent understanding and application of the law,the irregular practices of commercial banking operations,the lack of necessary information disclosure and information sharing and so on.After systematically studying the above basic problems,the paper finally proposes the countermeasures for the legal problems of domestic factoring cases and the recommendations for regulating the factoring business.On the one hand,the countermeasures for solving the difficult problems in civil litigation mainly include unified cases,clear jurisdiction,determination of litigant status of the parties,and application of uniform laws.On the other hand,it proposes to regulate the factoring business,including improving the industry legal system,perfecting the unified inquiry platform,improving the factoring business and the precautions of the basic transaction buyers and sellers,and striving to control the occurrence of factoring contract disputes from the source.